Evening star., 1922-04-16
WALL STREET IS CONFIDENT
:. AND SERENE IN ITS POSITION
Regards ALI Influences as Favorable and
!. Continues to Favor Advancing Prices.
-. Pertinent Comment.

to a chorus Of Name it, :" what como
pany?. Go on. tell it," he answered:
American Ice-it freezes its stock
And it's worth $29 a share"
Perhaps some of his hearers cut in
on the advice-perhaps. not-but
American Ice closed yesterday at $108
Subscribed Twice Over.
Secretary Mellon announced that
subscriptions for the 3h per cent
Treasury certificates Of series D-1922,
dated April is. 1922. maturing Octo-
Der Is. 1929; closed at close of busi-
ness on April Is, 1922.
Preliminary reports received from
the twelve federal reserve banks in
dicate that the Offering, which was
for t15Q,Q00.000, or thereabouts, has
been ,oversubscribed and that total
subscriptions aggregate over $780,
All Of the federal reserve districts
have reported oversubscriptions of
their quota. Further details as to sub
scriptions and allotments will be an
nounced when Anal reports are re-
ceived from the federal reserve banks.
Rio De Janeiro Sc.
The following interesting comment
appropos of the recent issue Of =
de Janeiro is from the Wall Street
Journal:
1T is a natural consequence, not q
coincidence. that the City of Rio de
Janeiro per cent, loan was floated
twenty days before date Of first serial
tracted by that city in 1919.
Nor Is there any mystery about the
inducement given to exchange new
lamps for old. Sinking fund of the
issue made this week commences in
1881 and the city receives some two
and a quarter million dollars new
money.
Comparing the prospectus of May,
1919. with that of April, 1929, 1t Is
easy to compute what Brazil Is will
Ding to pay for postponement for
nine years Of a debt service amount
Is added douceuf OF couple of
millions.
The debt of the city is most punc-
tilliously given in dollars. sterling
and milreis as Of January. 1922. The
house property tax, mortgaged for
ably more than maximum amount Of
the service. AS the 6 per cent bonds
are exchangeable for the new per
cent at par, small wonder is there
that the issue was oversubscribed.
But this Is not a municipal loan.
pared with the city's revenues. was
really quite unnecessary. A para
graph of the prospects reads:
These bonds will have as further
security the unconditional guaranty
as to principal. interest and sinking
fund by the federal government OF
the United States Of Brazil
The issue Of 1919 was not SO Sc
cured. Prospectus stated:
These bonds are isued under the
authority of the federal government
Of Brazil
The credit of the city is not now
considered good enough for an ad-
ditionai $4,000. 900. The federal for
eign debt has therefore been increas-
ed by $1s.000.o00.
American bondholders are learning
what British bondholders have known
for years past. When you lend money
to Brasil you must be prepared to re-
new the loan before commencement
issue must include sufficient new
money to pay interest as WELL Thus
the debt Is pyramided at compound
interest. Almost any terms are ac-
ceptable. except the payment Of some-
thing on account.
This fact having been duly digest
ed, the purchase OF Brazilian bonds is
not q bad speculation. The govern
ment is extremely prompt and
straightforward In the matter Of pub
lication Of financial and trade statis-
provident. but they are honest. They
pay interest to the bitter end. When
that comes-as 1t does every fifteen
years or so-they lay their cards on
the table, receive . funding loan and
retrench for q few years"