The New York herald., 1922-08-21
NEW BOND SUPPLY
AT YEARS LOWEST
Fresh Issues of Last Week Are
Only $4,000. O.OOO-Market
for Old Securities Off.

The supply OF new bonds and invest
ment buying were reduced to the lowest
ebb of the year in the week ended with
\ Saturday. The new low mark for fresh
| issues was little less than sic. 900, 900,
| The market for old bonds in the New
| York Stock Exchange also dwindled. 1t
was felt generally, however. that this
week would see the end of the period OF
| inactivity in the investment markets and
that a revival of no mean proportions
would come after Labor Day.
! WITH the coal and railroad strikes
/ nearing conclusion, domestic and foreign
! financing is expected to increase, and
naturally with the interest of investors
| stimulated by a greater supply of new
bonds n much greater demand Is likely
| TO develop.
In the next Investment boom It is be-
lieved that investors will be offered con-
siderably more stock than bonds, at least
for a time. 1t is known generally that
several domestic corporations are pre-
pairing to issue and sell new blocks of
common and preferred stocks. and some
OF those issues even now are ready for
public offering.
or course there will be always a
steady supply of new bonds, but in
future, ii is believed, the new issues will
be only of the prime investment variety
and the type second grade bonds that
appeared in such great quantities in the
recent big bond market will be elimi-
mated.
With signs Of business revival on
the Increase and many concerns being
placed again in positions to make sub
stantial profits, it is considered that the
time for a good market for common and
preferred stocks is ripe.
Ii has been generally mooted about
that American investors were more or
less fed up with foreign securities and
that bankers would refrain for consider
able time from Offering any of them.
Interviews with leading international
bankers able to know the appetite of
American investors fairly accurately
shed an entirely different light on the
situation.
Those bankers say that new issues OF
good foreign securities would meet with
as much success to-day as they did at
any previous time. They point out that
the American investor has never before
been so we'll informed on foreign affairs
and that he is in a splendid position to
decide for himself as to the values or
foreign obligations.
! The placing of additional foreign Sc
curities here awaits only more settled
! LABOR ana pOi1tlCal cOnulllonS, as AIileil-
can bankers are negotiating continually
with foreigners on new business In
London, where there is no prejudice
against foreign securities. bankers are
said to be seeking aggressively new busi-
ness and American bankers are con-
fronted with keen competition.
The first large piece of foreign financ-
ing to come to a head here is likely to
be the Cuban loan. amounting to $780,
100000 1t is likely to be offered in Sep
tember or October. after the Cuban Con-
gress has approved 1t.
After September l a revival of busi-
ness in the municipal bond market Is
expected. and for the first time in sew
eral weeks some fairly large bond offer
ings will be made. On September ! the
State OF Missouri will offer S5000,000
of its four and five year AIS. and II is
expected that that financing will attract
bids from svndicates in New York. Chi
cago and Boston.