The New York herald., 1922-04-17
LLIBERTYS SELL
FOR HIGHER PRICES
Reach Top Values Since Lows
Made in May, 1920-Gains
in All Classes Of Bonds.

Events in the investment markes
moved rapidly in the last week. Enough
happened 10 MAKE Il the most interesting
seven day period of this year and prove
that money, credit and Investments Were
working back TO normal sooner than had
been believed possible six months ago.
or first significance was the great rise
In United States Liberty bonds, most or
them reaching par. certain ones for the
first time since their issuance, while all
sold at their highest prices since the
establishment Of their record lows in
May. 1920. The appreciation in the mar
ket price of the 3iss. Second, Third and
Fourth AIS in the last seven months
alone has increased the purchasing
power Of their holders by approximately
| 81. ZOO, ,O0O.0Oo
The turnover in bonds on the New York
Stock Exchange last week was very
close to record proportions, in one day
| alone transactions amounting to about
So. .000. .Cc0 making that day the most
active one of this year. All classes OF
bonds made net gains OF point to as
much as five points under the impulse
of idle money seeking employment al the
) 10 I per cent. rates offered ry vel
secured bonds al a time when Aia per
cent. is the prevailing Wall Street rate.
| Restored confidence and the flow OF
capital into securities are not confined
to this continent. In London the invest
ment and speculative markets are boom
| ing. The Bank of England has reduced
its discount rate to per cent and call
money in London is ruling at 1i5 to 2
per cent. Gilt edged securities abroad
have in most instances advanced to their
highest levels since the war, duplicating
the performance in our own markets.
The Immediate impulse behind the rise
in our war loans was the sale by the
Treasury Department OF certificates OF
Indebtedness bearing a 3ta per cent.
rate. three-quarters OF / per cent. lower
than their previous issue and the low
est since 1917. New life is being in
jected into lax free municipal bonds as
resv.t of the rise in Libertys. which
We're strong competing field as long
as they sold for apprecablc discounts
Buying of foreign Government bonds
and domestic railroad issues was the
broadest. Advances of certain second
grade railroad issues were almost spec
tacular and exceeded gains by stocks
As an example of what has been hap
pening in bonds, Baltimore and Ohio
convertible 4hs have risen points in
the last three months: Erie As, 10 points:
Chicago and Alton 31as. IL points !;
Southern Railway As. points. and Sea-
poaTu AIT Line oS, ~ POINTS. NoSt Tor
eign Government loans have established
themselves at new highs and in practi-
cally every case are selling for big pre-
miums compared with their original Of
fering prices.
Last weeks new financing was in
relatively small volume, aggregating APP
proxinlately S65.000. 900. The new flota-
tions were insufficient to fill investment
demand and rapid oversubscriptions fol-
lowed all offerings. The largest piece 0:
financing was the sale OF S15,000,0 OF
the Province Of Ontario's SIS at 1914. or
on sos per cent. income basis. The
S13.000,000 offering of Rio de Janeiro IS
at lO3 was three times oversubscribed
and bonds In the open market advanced
, " points from their subscription figure.
A canvass of banks and investment
houses reveals a preponderance of opin-
ion that the rise viii continue.