The Washington times., 1922-06-28
Ds|sHa#~ B u SINESS AND. FIN AN c. 3 o.,
SAVINGS BANKS
BUYING HIGH
GRADE BONDS

Are Regarded as One OF the
Best Sources for Absorption
of:High Class Securities.
BY MUNROE ROBERTS.
Copyright. 1929. BY Cosmopolitan News
service)
NEW YORK, June 2S.-One OF the
best sources for the absorption Of
high grade Investment bonds is the
system Of savings banks throughout
the country. These institutions are
very closely supervised by State
banking authorities and rigid pre-
scriptions are outlined as to the char.
acter Of investments selected by
them. This, Of course. .tdoes not mean
that II Ii not possible for the banks
to buy securities which will never de-
preciate in value, for in the past dec
ade good many savings banks nave
been very much embarrassed by the
market depreciation Of bonds pur.
chased in the easy; money period
prior to the war. o.. -.t'. 49,
As these banks buy not only invest
ment bonds. but also real estate mort
cages, bankers acceptances and
other forms Of securities, II Is Oh
vious that they are always on the
lookout for that form of investment
which will yield them the best re-
turn. In this connection. II may be
said that real estate mortgages.
which during the war period were
frowned on by q good many investors
and investment institutions, are nrw
regaining their popularity and are
competing somewhat strenuously
with bond investments. This will &C.
count to some extent for the falling
low, coupon bonds and tax-exempt
municipal and Government issues.
the Yields on which are somewhat
out Of line with those of other forms
OF securities. The same would apply
to insurance companies. trustees Of
estateSa and administrators Of private
funds. 4
II il expected that during the
next six months an unusually large
number Of refunding bond issues
| will be introduced to the market.
The proceeds Of these issues will be
devoted both to the refunding Of
long term issues which mature in
the period referred to. and also to
the replacing of callable bond issues
which can be economically financed
by the issuiSg companies. A num-
Der Of these callable bonds carry
coupons as high as 7 and s PER
cent. and even with a Is or 20 per
cent premium which II will be
necessary to pay In order to retire
them. a considerable saving can be
effected by issuing new bonds carry
ing coupons at prevailing rates.
Investors have been paying consid,
cradle attention to the selection Of
bond issues which do mot have the
callable feature. the market quota
tions for which have shown a con,
siderable enhancement in recent
weeks.
II Is reported that negotiations
have been concluded between Blair
and Company. and General Vas
auez Cobo. manager OF Pacific Rail.
road Of Colombia. for an issue OF a
| 5000 900 loan at per cent to
| finance the extension Of this gov
ernment line. A further bond issue
for a similar amount will be made
as soon as construction works are
we'll advanced. The Pacific Rail.
road forms an important link Of the
system that unites Bogota. capital
OF Columbia, with the-Pacific coast
at Buena Ventura. 1t has already
been built over the western cor
dillera Of the Andes. and construc.
ton now to be undertaken win
cross the central cordillera.
Today's new offerings by invest
Z ment bankers aggregate about s11..
00o. 900, and include public utility.
Industrial, municipal and land bank
bonds. Among the important issues
are the following: Three million
dollar ten.year first mortgage Ia
per cent bonds of the Electric Auto.
Lite Company, at par and interest;
50, 700. 900 Clarion River Power Com.
pany first mortgage twenty-five.
year sh per cent gold bonds, 10 ma.
ture July I. 1947, at 81 and interest,
to Yield SIS per cent: $1.000.oo0
State Of California AZ per cent gold
| high bonds, dated July 3, 1917. ana
due July 8. 1899 to 1854. at price
to yield 4.20 per cent; s670.o00 ~
per cent and per cent bonds OF
the City Of New Britain, Conn. to
yield s per cent; 100000 State Of
New Jersey ~ per cent highway
bonds, due July 1. 1852, optional
1887, at 102 80 and interest, to yield
4 per cent to the optional date and
4.25 thereafter: 100000 st. Louis
Joint Stock Land Bank, s per cent
bonds. dated May 1, 1922, and due
May 4, 1852, at 103 and interest, to
yield approximately 4% per cent to
the optional maturity May 1. 1882.
| and s per cent thereafter; S1.0o5.0oo
Cfey OF Greensboro, N. c., per
cent gold bonds, dated July 1, 1922.
land due January I. and July 1, in