The New York herald., 1922-05-29
BOND TRADING is
MORE ANIMATED
Prices Move Upward-New FL
nancing Below-Weekly
Average Of 1922.

Trading in bonds was more animated
In the last week and important price
changes were IN the direction of higher
levels. but there were no indications
that the main rise in investment values
was about to be aggressively resumed
Bond prices have made i'm the last year
such great progress in adjusting them
selves TO lowered money costs and In
creased capital supplies that merely an
evening-up process is going on. There
are always semi-speculative issues
which fluctuate in accordance with
earnings and business conditions, and IT
has been issues OF that sort rather than
the standard investment descriptions
which have appeared to be selling out
OF line and have enjoyed extensive
moves.
Although there was noticeable
strengthening in Liberty bonds, the
Fourth 4l4s again reaching par, the net
Improvement was slight. Firmness In
the vast amount of war issues out
standing is nevertheless important in
that it refutes fears beginning to find
expression in Investment circles that the
bond market has gone up too fast and
too high and that the present level cam
not be maintained because of the tre-
HutlluOuS WelSnI OF new Offerings. IL
the market were being overlooked dan
gerously with issues 1t is improbable
that Libertys would be duplicating again
their best figures or that new issues
would Immediately sell at a premium
over their original subscription figures
The S5O0O.000 of the New England Tele-
phone and Telegraph Company's IS, put
out last week at 971a. sold UP soon 10 9S
and the issue was perhaps three times
nVercnhcrrfhod la
happen in market which has reached
it's saturation point. although a com
parative study of new financing so far
this year and in preceding years sug-
gests that new securities have been Gre
ated in too great volume for the
markets good
A comprehensive compilation made by
the Commercial and Financial Chronicle
places the total amount OF financing in
April. principally accomplished In the
form of bonds, at s655. 81 1916. the biggest
monthly total and contrasting sharply
with S5a7. .257.919 in March, the previous
record month. For the first four months
OF this year the grand tota4 of all
financing is no less than s2,00S,b94, ,361
a sum far in excess of rev flotations of
any corresponding period.
1t is hardly to be wondered at that
rapid advances in bonds have been
checked even though many we'll Sc
cured issues are still selling on a to
a 61a per cent. income basis at time
when time money is In abundant sup
ply at to "A Neither is it surprising
that there has been a lessening of ac-
tivity in the capital market in the last
fortnight. Time is required to digest
thoroughly SO enormous mass of Sc
curites and dealers are entering new
commitments on more conservative
scale. There is still n splendid market.
however. for gilt edged emissions ana
outstanding seasoned bonds are with
standing all competition by holding close
TO the years best prices. which, in turn,
are the highest since 1911 Incidentally
1t is to be observed, money rates are
the lowest since 1917. Fewer issues and
for smaller amounts were offered to
the public in the last week. but they
were well taken on the whole. There
We're no municipal flotations which ex-
ceeded S1.000c00, but the aggregate out
put OF tax free bonds was about s., 5,000,-
00o. Last weeks financing was con-
siderably less than the average weekly
financing for the preceding part of this
year.
Aside from the s35, 100000 offering OF
the New England Telephone Company
last weeks largest flotation was the
si2.47t.Co0 of the Utah Light and Trac-
tion Company's first and refunding 5
per cent. issue. brought out at ~ to
yield $40 per cent The Brooklyn Union
Gas Company sold s6,00O.000 Of it's 6
per cent. bonds at 105. or on 55s per
cent. basis. The United States Steam
ship Company, Ltd, sold s5.o00.O 900 OF
it's per cent. bonds on a $50 per cent.
basis. The first issue of subordinate
lien railroad equipment notes brought
out to test the market was we'll taken.
The offering consisted of 81, ,344 800 of the
Rock Island Railroads one year to
thirteen year per cent. notes sold to
yield $40 to $40 per cent.