The New York herald., 1922-04-24
DEMAND FOR BONDS
UNUSUALLY HEAVY
Pilin9 Up Of Money in Finan-
cial Centers and Low Inter
est Rates Reason.

That the investment market i eNpe-
riencing its most extraordinary demand
IL recent years. the result primarily OF
backing up of Idle money in financial
ccnters and a decline in interest rates
10 the lowest figures since 1917. was inn
pressed again on observers of last weeks
Gcve.opments with to-day's offerings
OF s40ooo,000 of the Empire Gas and Fuel
Company's bonds nearly s2oo,Oo0oOo OF
new bonds have been absorbed by the
public in the last seven business days.
making ii about the most active period
of this year in new tlotations. Some OF
the weeks new offerings were oversub-
scribed as much as five times, and there
was simultaneous rise of a point in
prices of listed bonds on the New York
Stock Exchange.
1t Is hardly strange under the circum-
stances that investors. and even bond
experts, are wondering II the rise in
prices can be maintained colncldent with
large volume of new emissions. In
general. ii may be said that Wall street
sees nothing TO interfere with the invest
ment boom because of the outlook Tor n
continuation of easy money and relaxing
vlval has not begun to make iproads on
bank surpluses. and fortnight of the
heaviest trading In securities OF more
than two years has not caused single
furry in money rates. In fact, they
have tended lower. the prevailing eau
loan rate being 3ia per cent. and short
time money has been available at per
cent. Prime bankers bills at 3ss per cent
show clearly enough the decline in the
n a 80 a Ngf. ..AYa NJ
ing increase in the value of high coupon
bonds.
Evidently investors have little to- gain
in market position by postponinS pur-
chases, and that such is the general
opinion undoubtedly accounts for the ra-
pidity with which new offerings are De-
ing snapped up while speculative buying
continues TO flow into the bond market
in competition with investment absorp-
tion. That speculative buying has accel-
Grated the advance in bonds. which are
row up approximately fourteen points
on the average from their level of a
year ago. Profit taking by traders
caused such rea dictionary intervals as the
market experienced last week. but such
day TO day surface movements were
hardly representative of the strong un-
oercurrent of buying
An interesting gauge OF the positlUn
OF the municipal market Will be pro-
vided tomorrow by the sale of $4,000
900 of the city's u per cent. long term
bonds. Municipal bond experts believe
that the Comptroller has selected the
psychological moment 10 open bids for
the reftnding of short term notes and
that the sale will be highly successful
from the city's point of view. Dealers
regard municipal bonds as high, and yet
demand for them Is characterized az
terrific" despite recent large offerings
and no one seems to care to predict that
the advance Is nearing its end.
state and municipal bond sales totaled
about $4,000. 900 last week. A compiia-
ton made by the Bond Buyer indicates
that S102.615.S40 county and district
road bond issues are authorized and un-
sold and that SS3.569. 900 of additional
bonds are in the process stage. Road
building has become the most important
activity TO be financed by state and
county bond issues and this year
promises TO be q record breaker in .he
total OF fotations of that character.
Corporation bonds and notes maturing
next month will not call for much
financing, their aggregate being about
$4,000, 600. and arrangements to meet
many OF those Obligations nave oeeH
made.
Among the more interesting bond
offerings of last week were S7,o0O,O0O e.
the Indiana Steel Companys anu
$4,000, 900 Of the National Tube Conf
panys IS. sold on n 5.5 per cent. basis.
That financing is the first BY any sub
sidiary OF the United States Steel Cor
poration in eight years. The State Of
Illinois S6.00O,000 of its per cent.
highway bonds were sold on TO a 3.9a
per cent. basis. Foreign financing was
heavy and was for concerns rather
than for States. A block of Sl0,o0O,0vo
of the Paris-Lyons- Mediterranean Rail-
ways bonds was sold for a figure 20
net 725 per cent on the investment ana
$4,000. 900 of the Paulista Railway Com-
pany Of Brazirs Z per cent. bonds were
sold at 80 10 yield 40 per cent. The
S2O,0O0,0 600 OF the Dutch East Indies
external SIS. offered on a G.4S per coat.
basis. and the 30.000.00o guilder OF the
Holland America Lines 6s, offered on
q $50 per cent. basis. went quickly.