The Washington times., 1922-07-27

copy flghi, le22, by IoSlnOpOlllhh NEWS
ServiCe.)
NEW YORK, July 27.--While
il has commonly been supposed
that municipal bonds. bccaus" of
their taX-exempt feature. were at
I tractive 'on.y 10 persons Of large
incomes, Investment bankers are
quiry for these bonds by small
investors whose purchases are in
modest quantities. Municipal Of
ficials have recognized this fact
to the extent that they are now
issuing their bonds in $500 de.
nomina tions, instead of the old
fashioned $1,000 and $4,000 lots.
Some OF them have gone 80 far
as to split up their bonds in de.
nominations as low as 500.
To certain extent municipal
bonds are clannish: that is, they
are held by investors in their own
districts, rather than being scat.
tered abroad. Western municipals
command a better price in west
ern sections and southern bonds
| in the southern district. Invest
ment banking concerns have made
an exhaustive study of the prin.
cip!es underlying the attractive
ltdluIt VI DOHu lbbuCb,
of which none are greataer than
municipalities or districts by which
they are put out.
The Treasury Department has re-
| quested the cooperation of the
! banks and investment organizations
in the distribution of the new $780,.
| 900, 900 four.year AZ per cent Gov
| ernment bonds. While this will. Of
! course, be forthcoming, 1t will re.
quire very little urging for the pur-
chasing of such attractive invest.
! ment securities. In a letter sent to
the banks, Secretary Mellon points
out that on April 80, 1921, the gross
public debt was $23.995, 100000 Of
which $500, 900 900 was in short.
term debt. maturing within two
900, ,000years.
! II Is stated in the financial dis
trict a call will soon be issued for
the deposit of Mexican bonds under
the new agreement recently nego-
tisted between representatives OF the
! bondholders and the Mexican finance
minister. 1t will not be necessary to
wait for the approval of the Mexi-
can congress, which does not con-
vene until the first part Of Septem-
ber. The formal approval of Presi-
dent Obregon will probably be all
that is necessary to Consummate the
arrangement.
| Public utilities and municipal
bonds predominate In today's new
offerings. which aggregate about
SIS, 900, 900.
An issue of $4,000, 900 first mort
gage gold bonds (6 per cent series
"A'0 OF the Southern Colorado
| Power Company Is offered today by
a syndicate headed by II. NJ. Byl-
lesby & Co.. at %, to yield $50 per
cent The bonds mature in 1947.
and the proceeds will be used to re-
tire all existing bonds and the
short-term funded debt.
| Speyer & Co. are offering a new
issue of $500, 900 Havana Elec.
trio Railway, Light and Power
| Company general mortgage per
cent sinking funds gold bonds, Sc
| ries "a" due September 1, 1854. at
IS and interest, to yield about 6.07
per cent.
Offering is made today of an is
sue of $4,000. 900 city of Philadel-
phia 4 per cent general improve
ment bonds, due serially in twenty
to fifty years, at the price of 101
and accrued interest. to yield 3.93
per cent by New York and Phila-
delphia bankers syndicate. Other
important offerings include: $1,000
900 serially an per cent highway
bonds OF the State Of Oregon, to
yield 4.25 per cent; 1852 900 serial
fives of the city of Toledo, to yield
430 per cent; s66S,000 serial SIS
of Astoria. Ore% to yield 8 per
cent.