The New York herald., 1922-02-06
BOND MARKET HAS
LESS ACTIVE WEEK
New Offerings Small and Deal
ers Have Opportunity to
Clear Shelves.

The bond market quieted down con-
siderably last week and as offerings of
new bonds were not large dealers We're
able to move out some OF their surplus
stock OF bonds which had accumulated
in the recent period of great activity in
new financing. Outside of Government
financing the only important new issue
OF bonds, in point OF size, was the
$30.000,000 OF per cent. fifty year first
and refunding mortgage series a bonds
OF the Burlington railroad. They were
offered on the comparatively low basis
of 5.17 per cent. but were readily taken
by investors and there was a sizable
demand for them after their subscrip-
ton books we've closed. which resulted
in premium for the bonds as soon as
they were listed on the Exchange.
The offering OF $400.000.000 Az pen
cent. three years non-callable notes OF
tho United States Treasury. which were
about three times oversubscribed, at
tracted much attention, but it cannot be
said that that short term issue entered
into competition with long term corpo-
ration bonds Tho real reason for the
lull in new financing is said TO be senti-
nlent in banking circles against offer
ing largo amounts of new bonds at this
time.
from the total of all new bonds for the
week leaves only about s200O0,0o0 di-
vded among industrial, railroad, public
utility and municipal issues. An in
teresting public utility issue was the
$500 900 twenty-four year ~ per cent.
bonds of the Melbourne Electric Com
pany, Ltd. one of the first foreign in
dustrial. corporations to seek new funds
here, although economists have main
tanned for considerable time that this
market would be called on to take large
amounts or such bonds.
Little progress In negotiations for for
elgn government loans here was made,
it is understood, mainly because OF un-
settled European political conditions.
Bankers feel that current events In GER
tain European countries do not war
rant their listening to pleas of their
governments for large sums OF money.
The upset of the Italian cabinet, the
railroad strike in Germany and uncer-
tainty regarding tho Genoa conference
operate against offering foreign securi-
ties In this market.
IT IS likely that the s75.C0oy0oo offering
of Land Bank bonds, which will be
made to-day, will have a clear field
without important competition. No ef-
forts to sell those bonds rapidly Will
be made but bankers will strive for
their thorough distribution, 1t has been
stated. The issue has been under con-
sidcration by the Federal Land Bank
Board for several weeks.
The halt in the output OF new state
and municipal issues has relieved the
situation in the municipal bond market,
and there is less uneasines5 concerning
bonds in dealers hands.
transactions in bonds on the New
York Stock Exchange last week were
substantially smaller and the market
tone was a trife less buoyant. "A heaVy
calling of loans was reported early IN
tho week and money rates st'ifened, out
the last few days the trend was moder-
ately downward. In money circles dill
fcrences of opinion as to whether or not
money can be expected to become
cheaper or whether or not there IS dan
ger Of real stringency developing soon
exist. A feature of last weeks bond
market was tho strength OF United
Kingdom bonds in sympathy with the
rise in sterling.
Commenting on the fact that the ad-
vance in the bond market has been re-
sumcd on a much more moderate scale
than that of last autumn one BOND au-
thcrity says: ''It is but natural that
this should be so as the movement was
100 rapid at that time to be sustained.
Bond prices, however, are stu very
much below pre-war levels, considered
in terms of income yield. and we ex-
pect to see recovery continued until quo
,ations are more in line with those pre-
yailing in normal times"