The New York herald., 1922-06-12
EASY MONEY ADDS
TO BOND STRENGTH
Large Offerings, Including
Government Issue, Absorbed
Last Week.

Further recognition of the money mar
ket's liquid state and the belief ex-
pressed on all sides that money will be
easy for some time revived last week
the enthusiasm in the investment mar
ket which had subsidized somewhat in the
preceding week Bankers and bond deal
ers were able to distribute large amounts
OF new bonds without difficulty and an
other large block of Treasury certifi-
Gates of indebtedness at lower interest
rates found ready market. The total
of new bonds, including municipal. cor
porate and foreign issues, marketed was
more than $S5,000,000, while the offering
by the Treasury Department amounted
to $250,000.000 3A per cent certificates
running for one year. At the same time
the Government offered an indeterminate
amount of 4% Treasury notes to be ex-
changed for Victory ANS. 1t is said
that the Secretary of the Treasury ex-
poets to refund the entire issue OF
Victory ANS before the offer of ex-
change expires. The largest offering
In the general market was an issue
of $25, ,006. 900 United States Of Brazil 7
per cent bonds sold on a 7.30 per cent.
basis. That issue was quickly oversub-
scribed.
The market for outstanding bonds
listed on the New York Stock Exchange
was of slightly larger proportions last
week and. with the exception of one or
two Issues, little stronger. An out
standing feature of the market was the
strength in Victory bonds, following an
nouncement Of the Treasury's plans for
refunding them, Mexican bonds were in
clined to heaviness in the absence OF an
announcement about. the conference be-
tween international bankers and Mex
icos fina ncial representatives.
Investment authorities would like to
see rest period for, the bond market.
However, such period is not likely to
set in for some time, owing to the num-
ber Of sizable issues waiting to be
placed among investors. This week Will
start with new offerings of bonds ag-
gregating something like $20,000,000 and
within the next two or three days the
large Jugo-Slav loan, probably will be
offered.
In the municipal bond division pre-
vailing sentiment regarding the market
can be judged by the following excerpt
from an article in the Bond Buyer:
'The financing municipalities In the
next few weeks expect arrange new is
sues. Should additional requests for
funds be announced there is danger of
a general reaction bringing about lower
values throughout the entire municipal
bond list. 1t is hoped that public Off.
cials will sense the uncertain conditions
of the market and hold back as much
as possible with respect to additional
borrowing operations"
Among the interesting developments
in the investment situation was the de-
cision by the New York Telephone Com
pany to offer for the first time in its
history a preferred stock The issue will
amount to s25,000,O00, consisting of
cumulative 6h per cent. preferred stock,
and will be offered to the company's
telephone subscribers Should this
comparatively new form of financing
prove successful other large corpora
tions are likely to offer similar issues.
The Consolidated Gas Company will re-
deem on September 1 next all it's $685.
100000 per cent. convertible bonds.