The Washington times., 1922-08-22
RAIL BONDS
ADVANCE AS
STOCKS CLIMB
Have Kept Parallel With Stock
Issues to Which They Are
Closely Related.
By MUNROE ROBERTS.
Copyright. 1922, by Cosmopolitan News
Service.)

tCOpyright. lSz2, Dy cosmopolitan News
Service.)
NEW YORK, Aug. 22.--The per-
formances Of second grade bonds
in the listed bond market have
been running parallel with those
OF the stock issues to which they
are closely related. It is only un.
der the influences of enthusiastic
bidding for investment bonds that
prices advance 3 to points in q
single session, yet that has been
the record Of more than few
speculative railroad bond issues in
recent weeks. A Comparison of cur.
rent prices of some of these BONDS
with those which prevailed in the
early part of last year shows some
extraordinary advances, which have
not been wholly due to the general
business Improvement or the easing
off In money rates; and. must,
therefore. be attributed to special
developments in the companies re-
sponsible for their ultimate pay
ment. Bonds OF the st. Paul, Erie,
Frisco. Seaboard Air Line and SIM
ilarly situated railroad companies
have made the best response to the
recent improvement in the financial
outlook. ..-.. i,'
According to Washington dis
patches, there will be no further
financing by the United States
Treasury Department until the mid
die Of next month. At that time
two outstanding issues of certifi-
Gates Of indebtedness will fall due,
as well as the semi-annual payment
OF the interest on the third Lib
erty loan. the latter amounting to
approximately 500, 200 900. These
payments will be offset to a cer-
tain extent by the third instailment
OF the 1921 income and profits
taxes. However, the Government
will find 1t necessary to provide
further funds to take care of all
disbursements.
1t is believed in authoritative
circles connected with the Treasury
that the next public offering of
notes will carry some provision for
the further exchange Of Victory AZ
per cent notes.
Interest on all Of the * per cent
Victory notes designated by the let.
tiers A, b, c, d, T. or r, will cease
on Dec. Is, while the remainder will
mature on May 20. 1923.
While this months aggregate of
| new municipal bond issues will be
somewhat smaller than usual,
municipal financing has been main.
| tanned on a larger scale than that of
the Industrial or public utility com.
panies since the first part of the
summer season. Dealers in munich.
pal bonds anticipate a brisk season,
which. will begin Immediately after
the Labor day holiday and continue
| until Christmas. Municipal officials
have been taking advantage of the
splendid opportunities that exist for
them to borrow money for their
municipalities on the most favorab BILE
terms and would prefer not to wait
until competition for the funds be-
comes keen.
OF interest along this line is the
! announcement intention OF a mum.
| ber of the States to put out new
| bond issues for the purpose Of pay
| ing bonuses, or adjusted compeh.
sation" to their soldiers who served
in the war. At the November elec-
tions, a total of about 5000 .000, 900 in
| new projects of this kind will be
submitted for the approval Of the
voters and, while all may not be so
approved, a large percentage doubt.
less will, and these will be offered In
the market shortly after.
It is expected that the Third Ave.
nue. Railway System will be able to
put its 5 per cent adjustment bonds
on the full payment basis before the
end Of another year. So far this
year interest Of IN per cent has
been paid.