The New York herald., 1922-02-13
QUICK BOND SALES
SURPRISE BANKERS
Land Bank Offering of $751;
100000 Among Those
Grabbed Up.

The action OF the investment market
last week left nothing to be desired, IN
the opinion OF bankers and other inter-
ested persons. The response made to a
number Of constructive factors was Wig
orous and unequivocal. The output of
new bonds was much larger, about
Sl4o, 100000 being offered. The manner
in which these bonds were taken sur
prised the bankers sponsoring them.
The best example was found in the
quick sale of the block of S75,0O0,000
per cent. Federal Land Bank bonds.
After careful survey the bankers offer
ing these bonds announced that as their
aim was to have them properly dis
tributed it would probably take a week
or more to sell the block. In two or
three days the bonds had all been placed
in the hands of investors, and the SUBJ
scription books are closed.
Probably one of the chief reasons for
the popularity of the new Land Bank
bonds was tn. announcement by the
Treasury Department of the retirement
of the 3A per cent. Victory notes. It
is expected that the next step in the
Governments refunding operations will
be the retirement of the Az per cent.
Victory notes. Those who had been
heavy investors in the Victory So 5,
welcomed the opportunity to switch into
the new tax exempt Land Bank bonds.
Bonus Plans Act as Incentive.
The threatened taxation to cover the
expense of the soldiers bonus was an
other incentive for investors to buy tax
exempt securities. These factors, TO-
gether with the cheerful atmosphere
created by the heavy oversubscription
to the last offering of Treasury notes.
so stimulated the bond market that all
the new issues were snapped up and
there developed a good demand for old
line bonds on the Stock Exchange
Transactions in listed and unlisted
bonds were much heavier, and prices
were advanced substantially
The features of dealings on the ex-
change were the remarkable strength in,
United Kingdom bonds, occasioned by
the rise in sterling. and the vigorous
demand for the railroad bonds OF
speculative character. The rise in the
speculative railroad bonds was coin II
dent with the advance in railroad
stocks.
Several banking syndicates that had
acquired sizable blocks Of old seasoned
railroad bonds in trades, &C., took ad-
vantage of the improved sentiment to
offer them to the public. These blocks
were quickly sold. Large investors
welcomed the opportunity offered to in
vest large sums of money, as in present
investment conditions 1t is hard to pur-
chase good seasoned bonds in large
blocks. A large order has to be filled
piecemeal at the best prices obtainable.
$3O,OOO,OOO Sale ms starter.
The week opened with the sale Of
s30,000,000 Great Northern Railway
general mortgage bonds offered on a
SIS per cent basis. They were sold in
few minutes. and on the same dar
they sold at a premium on the ex-
change. Late in the week an offering
of $10,000,000 State Of Queensland, Aus
tralia, external gold per cent bonds
were offered. Another issue during the
week was S10.000.0 900 Consolidation Coal
Company first and refunding mortgage
gold bonds.
Several good sized public utility issues
were put on the market, but few State
and municipal offerings. The municipal
situation showed much Improvement
last week. and all reason for uneasiness
in that direction had apparently passed
Fortunately new issues Of State and
bonds have been coming along
in much smaller volume and there are
still no offerings of Importance n
sight
1t is felt that the municipal market
will work out satisfactorily now, barring
any unfavorable developments. While
no information as to the exact num-
Der Of unsold municipal bonds has been
given out. it is believed that the amount
has been greatly decreased.