The New York herald., 1922-03-27
s7O,OOO,OOO MORE
NEW BONDS APPEAR
Last Weeks Total Is Slightly
Down-Current Week to
See Increase.

The market for investment securities
continues to romp along undistubcl ~
soldier bonus bugaboos. a steady ficod
OF new bond issues or the fact that the
recovery in prices since last spring has
( been OF remarkable proportions for 50
brief a time. The last week saw some
dminution in the creation OF new issues,
but the total nevertheless. was sizeable.
amounting to about $70,000,000 and the
current week promises to far outstrip
that figure. There are in sight or under
negotiation by Wall Street bankers new
loans aggregating about S9O,0OO.OOO,
largely to foreign Governments or for
eign railroads.
The turnover in listed bonds on the
Stock Exchange was in sustained vol
ume throughout the week. the min
trend being upward. but the rapia!tN
the advance naturally Is being retal'c'
by removal OF investment issues 81 ~
the inordlnatcly depressed figures of
few months ago. In fact. the big gains
in recent bond trading have been con-
fined primarily TO foreign Government
securities and to the ont and out s2ecu-
lative issues of domestic corporations
There is not much room for further quick
advances in gilt edge investments, which
are hard to buy on a yield basis more
favorable than to per cent But with
the prevailing money market on TO
Az per cent. basis there is bound to be
a further gradual appreciation in first
class issues and speculative buying al
ways can be counted on under the Cir
cumstances of plethoric money supplies
10 elevate the second and third rate
bonds.
That foreign bond issues ere steadily
finding favor with American investors
was indicated by Tie preference shown
for many such isEucs in last weeks
trading. the .s,-ti.ii'y for them being
because. genera! y speaking. they arc
selling behind the rest OF the bond mar
ket and can be purchased OH higher
income bass. Swiss IS. which Were
quoted at a new high of ll9, show what
a long term. high coupon bond can do
IN the present market when an obliga-
tion is deemed to be of sterling quality
Because the best American RAILROAD
and public utility bonds have returned
to a relatively low yield basis, and there
is a very large class of investors which
will not buy foreign securities, invest
ment experts are looking for better
and more active market for preferred
stocks 1t is the opinion that the time
is rapidly drawing near when weli es-
tablished corporations will be able TO
raise funds through the sale of Z per
cent preferred stock without difficulty
A security of that sort will be taken
by many investors in preference to Sec
ond grade bonds or foreign securities.
dealers find. assuming, of course that
the issuing company has a good earn
ing record. Certain critics of the bond
market think that there is a tendency
to overdo financing through bonds and
assert that the quality of certain new
issues has been deteriorating OF late
L. d. fn
and easy to sell.
New State and municipal financing
dropped off in the last week, but deal
ers have nothing to complain OF so Tar
as demand for their wares is concerned
The market holds firm and Is charac-
terized by much activity. a condition
which seems destined to endure as long
as the supply of United States Govern
ment notes and bonds Is diminished by
gradual retirement, thus forcing capital
10 seek new employment in tax exempt
municipals.
Financing accomplished last week in
cluded the sale of. $4,000, 000 OF the Erie
railroads consolidated per cent bonds.
clearing up it's near maturities. The
Missouri Pacific sold S1S,000.000 OF its
first and refunding bonds on 6.lo per
cent. basis. The s6.000.000 OF the city OF
scissors per cent. external bonds, Of
fered on 1865 per cent. yield basis, were
taken up quickly by investors. Indeed,
quick oversubscriptions characterized all
the weeks financing testifying to an un-
slaked investment appetite. The South
western Power and Light Company sold
$4,000, 900 OF its bonds on go per cent.
basis. and the Municipal Gas Company
of Albany sold 100000 of It's bonds on
$50 per cent. basis. The days of high
coupon rates for well secured bonds has
passed. no new issues last week carrying
more than a 6ia per cent. coupon,
whereas three or four months ago Z.
7Is or per cent coupons predominated.