The New York herald., 1922-05-01
S2s5,OOO,OOONEW
ISSUES FLOATED
Last Week Years Most Active
Period for Successful Bond
Offerings.

The flotation of approximately $685.
100000 in new bonds last week, making
1t the most active period of the year,
was logically accompanied by letup
In the prolonged rise which has been
under way in prices Of outstanding
bonds. but there was nothing to suggest
that the boom in Investment markets
had run. it's full course. Indeed, the
avidity with which every new issue of
bonds was absorbed by investors indi-
Gated that despite huge proportions OF
new financing this year the saturatloh
point had not been reached and that
the market WAS not even suffering
temporary slump because of too many
undigested securities in the hands Of
dealers.
IL AS evidence that investment condi-
tions are the best that the country has
enjoyed since the market was Iirst
glutted with Liberty bonds. 1t is to be
observed that in the first three months
OF this year a grand total or Sl,329,-
372.737 in new issues of all kinds mas
been sold on a consistently rising mar
ket The first quarters financing, ac-
cording to compilations made by the
CONNIE ,ercial aud Financial Chronicle, ex-
ceeds all previous records for any sim
liar period The March output of Sc
icurities of all kinds was 551,257,979,
new monthly record.
With those figures as a background,
the last weeks activities in the capital
market were the more impressive.
sl0O. .OO0, 900 Canadian loan. offered on
5 per cent. basis. was oversubscribed
within few hours and the same was
true OF a $40 100000 issue of 71s per cent.
bonds sold on 765 per cent. basis, by
the Empire Gas and Fuel Company. At
the same time the city was able to sell
a block of $45 900, 900 of its Az per cent
bonds at 102766. the highest premium
that it ever received for such an offer
ing Speyer & Co. were the successful
bidders. Total bids received by the, city
4 were sufficient to have taken the issue
eight times over. The banking syndi-
cate which is making public offering
Z OF the bonds reports that they are going
well.
OF the thirty or forty individual bond
s offerings made in the local market in
I the last week only \ few issues carried
coupons of more than 6 per cent. The
yield basis on the whole has not shown
much OF tendency to recede in recent
weeks, but new financing is being done
on terms better for the borrower than
he has been able to obtain in several
years. The facility with which bonds
are sold nowadays and the relatively
low cost of credit account for the re-
markable activity in the capital market
Although there was furry in call
money last week the market was fun
damentally easy and the latest Reserve
Fank statements foreshadow main
tenance OF that position.
Among the weeks more important Of
ferings were s6,5O0.OOo Of the Union Bag
and Paper Company's first mortgage 6s.
brought out at 971a to yield 6.20 per
cent; S9.300,000 of the Southern Rail
ways equipment trust 5 1as, sold on
5hs to $50 per cent. basis; $4,000. 900
OF the Rogers-B Brown Iron Companys rs.
offered on Ia per cent basis; $4,000
600 of the Producing and Refining Cor
poration's SIS, sold at 1929 $3,503, 900
of the city of Newark's improvement Az
per cent. bonds, offered on a 40 per
cent. income basis and s1.250.000 South
Dakota SIS. sold on 4.20 per cent. basis
A total of s26.000.0O bonds has been
called for payment In May in advance of
their maturities. another reflection OF
easier money conditions which is max
Ing it profitable for borrowing corpora
tions to retire obligations issued at high
interest rates. A year ago only
S4.900,000 bonds were called In advance
Of their due dates. Corporate maturities
In May will not be large, aggregating
about S5o,000,oo0, in contrast to 3,000.-
600 i'm April.
An array of Irregular price changes
was shown last week by bonds on the
New York Stock Exchange. Such re-
cessions as occurred were primarily the
result of realizing i'm more speculative
Issues. Numerous advances of a point
or more were recorded by high grade
issues. Liberty bonds ruled steady, just
under par. although at one time the
Fourth AIS again duplicated their high
Of the year of par when a block OF
s3,000,000 changed hands in single
transaction, the largest of the kind this
year.