The Washington times., 1922-06-07
BONDS
EXPECTED TO
REACH 110SOON
Specf alists Predict Advance OF
7 Government Bonds to 10
BY End Of Year.
By MUNROE ROBERTS.

copyright. 1922. by Cosmopolitan News
Service)
NEW YORK, June THE pub
lication OF periodic statements OF
the outstan nding war loans OF the
United States Government reveals
a constant decline in the volume Of
these issues. The explanation IL
not far to seek. The treasury Of
ficiaIs have been continually buy
ing up these bonds for retirement
with the special funds provided for
that purpose and, as the floating
supply has declined, the market
quotations have advanced. Doubt
less the execution Of the Govern
ment's policies with regard TO Lib
erty bonds has been an important
factor In the rise Of prices from
below So on all issues to above par
in the last year or so. Specialists
In Government bo,lds confidentiaily
predict the advance Of Liberty bond
prices to l10 before the close OF the
year.
There Is y well-defined division
OF sentiment among banking and
financial experts as to the future
course OF money rates and. there
fore. in the probable level of bond
prices in the immediate future. In
vestment bankers are fairly unan-
imous in their statements that the
prices Of prime securities have
gone about as high as they can be
expected TO go under present condi-
tions and that the only stimulus
TO a further rise would be a decline
to lower levsls in the loaning rate
for money. Most bankers think
that lower rates will come, II not
Immediately, then surely after the
seasonal requirements of the agri.
cultural districts have been taken
care OF.
There is still room for improve
ment In the market prices OF a
good many speculative bonds. which
anywhere from to IS per cent.
but the prices Of these bonds are
largely dependent upon the be
havior of the corporations which
are responsible for the payment OF
the attached coupons and for the
ultimate liquidation OF the princi'
pal.
Considerable excitement has been
| stirred up in the bond market OF
late ove- tond issues which carry
| special privileges such as partici
| patton in earnings. stock rights
convertibility privileges. etc. Among
the most prominent OF these are
Freeport. Texas, per cent; Mar
land Oil participating SIS, and Con
solidated Gas rs. Spectators are
keen TO appreciate the possibilities
for profit in these issues and are
not slow to ferret them out wher
such occasions arise.
Today's cables bring confirmation
OF the new loan to Jugo- -Slavia. the
tctal amount OF which will be
slOO, ,000.0 in s per cent bonds
the underwriting price being S6A
and the Issuing price around -
series, the first amounting to about
$50, 600. 900, TO be available three
! weeks after the ratification OF the
| loan by the national assembly, and
the remainder as needed by the
government, within three years after
| Under the conditions of the loan
the government is not to negotiate
other loans until II completes pay
| ment on this one. such payments
TO begin ten years after ratification
of the loan by the legislature.
A New York banking syndicate is
offering a new issue of $4,000. 900
Consolidated Gas. Electric Light and
Power Company of Baltimore first re.
funding mortgage per cent sink
ing fund gold bonds. series A. dated
February |, 1919. and due February
|. 1949. at the price of 90 and in
| terest, yielding over sos per cent.
/ The bonds, together with $4,000, 900
| ~ per cent series r bonds, and
| SO, s,000, 900 per cent series g bonds
are secured by mortgage on al
| property OF the company. Bonds or e
reserved to refund all underlyIn 9
issues.
Other important offerings today
included:
S34O. 900 city OF st. Joseph, Mo, !
per cent improvement bonds at nrices
yielding from 40 to 425 per cent
according to maturity.
| 100000 State Of Alabama per
cent registered renewal bonds, due
July /. 1856. at a5Ia and interest, &c
yield 4.25 per cent.
| $500, 900 Tennessee Consolidate
Gas Company purchase money first
lien per cent sinking fund bonds
due September I, 1910. at 90 and in
terest. to yield about per cent.