The Washington times., 1922-03-20
VICTORY BONDS
HIT new HIGH
MARkAT 100.96
High-grade Industrial and Rail-
road Bonds Also Record
Gains.
BY MONROE ROBERTS,


Copyright. 1922. by Cosmopolitan News
Service.)
Victory Ans made q new high to-
day at 100.s6. Last high sale was
10000.
Bond dealers have been making
some quiet Investigations as to the
source Of the plethora of funds that
have been flowing to bond market
in an evsrincreasing strain. heavily
over-subscribing tho million dollar
issues in the competitive market and
resulting in the largest day-to- day
business, both on the stock exchange
and in "over the counter" bond sales
that have been recorded since the
days Of war initiation. A glance at
current bond quotations is all that is
necessary to emphasize the remark.
able recovery that has taken place in
prices Of investment securities dur
ing the past eighteen months. Per-
haps the action Of Liberty bonds will
Illustrate this most forcibly.
From the standpoint Of safety and
security nothing better could be Of.
fered to American investors than
the bonds of the United States Gov
ernment. In times Of financial de-
preston therefore the question Of
income yield In the most important
consideration and the low coupon
OF the Liberty issues was alone re-
sponsible for the slump In the price
of these premier issues to as low
as 81 in the competitive market.
The subsequent recovery to 9S. a
sheer climb Of 16 points. is the most
significant commentary on the gen
eral evolution Of the bond market.
This reCo I h'.1 been duplicated by
high grade indus ,rEil. railroad and
public utility bonds. some OF which
rave reKs.ned 20 points Of their
Losses.
Source Of Funds.
Now. as to the source Of invest.
ment funds. there Is a large num-
ber Of financial. investment and H.
duciary institutions whose sole
business It Is to seek employment
for large amounts OF funds paid to
them as premiums on life and other
forms Of insurance, security bonds.
savings deposits, etc. These In
sututions are always in the mar
ket for prime bonds. and their ex-
pert managers are always survey
ing the market closely for securi-
ties which will suit their purposes
to best advantage. Rich individuals
who are constantly jockeying for
position In the market create con-
siderable activity even when the
net results are negligible III reduc-
ing the market supply.
But a large part Of the invest
ment funds of today are the result
OF conditions peculiar to the pres.
ent-day financial conditions.
Every financial depression Is fol-
lowed by a period Of ease in the
money market. when funds pile up
before finding permanent employ.
ment in business. These funds are
naturally attracted to .he bond
market. for the reason that bonds
the most liquid form OF
they return good
yield II held for only week or a
month and there is always pros.
pect OF enhancement in prices.
Overwhelming supplies of money
for investment is a good sign only in
that II foreshadows the passing Of
Of the "wherewithaI' to start the
wheels Of business in motion. Per
manent tying up OF business funds
In bonds would be disastrous for the
as a whole.
New Issues Offered.
There are evidences that this week
will witness a host OF new offerings
In the open market. That conditions
are propitious has been shown by the
demand for the new issues
which came to the front last week.
on the Dutch East Indies
and the Framerican bonds were only
about so per cent of the bids re.
ceived. The Sinclair Oil rs in the
Of $4,000. 900 brought offer.
lngs to purchase $50, ,000. 900 worth Of
these bonds.
Today's new issues include $4,000.
900 government Of Newfoundland
5h per cents, $4,000. 900
IN. " municipal gas COM
pany thirty-year gold mortgage 5h
per cents. 81, 200, 900 Escambia Com
pany (F'lorida) thirty.year 6 per cents.
n nd SQ26 00O cify Of Albany m w