The Washington times., 1922-06-15
BOND MARKET
OFFERED 2NEW
FOREIGN ISSUES
and Republic o.
Chile Offerings Placed on
= Market Today.
BY MONROE ROBERTS.

fcopyright. is32. BY Cosmopolitan News
:, . .ssrvice)
> NEW YORK. June 1.-two new
Issues OF foreign bonds feature the
bond market today. The $4,000
600 Jugo-slas 8 per cent bonds are
now ready for the market a. also -
. new issue Of 10000. 900 pesos. Of
the republic OF Chile.
In some sections of the bond mar.
ket special features seem to be nee.
essary TO induce good purchasing Of
the outstanding listed issues. Tie
Mexican bonds have drawn particu-
kar attention. because Of the special
in the foreign debt.
Convertible Industrial bonds have
been absorbed because Of new de-
yelopments In their Issuing compan.
les. offering attractive inducements
70 now holders Of these securities.
Leading investment bankers have
been somewhat n q loss to acount
for the recent slump In the prices Of
the prime variety Of railroad and
Industrial bonds and predict q re-
newal Of the upward tendencies In
these bonds before the end OF the
summer. II all depends upon what "
considered tho going rate for well
secured investment money. II that
rate L. TO remain around ~ or S
per cent. II will hardly be logical TO
look for higher prices In bonds which
carry q I. or 8 per cent coupon.
Should the money rate continue It's
decline. bond prices must inevitably
move in an upward direction.
Compared with q month ago. the
averages as complied by Dow. Jones
Company shows q decline Of 80 in
forty representative listed bonds.
The second grade rails declined 90;
public utility bonds SO; industrials
.06, and the high rails advanced .02.
At these rates, however, they indi-
cate advances Of from 10 to 1s points
over the same period last year.
A banking syndicate headed by
Blair q Co. is offt ring 5000. 900
forty!year 8 per cent secured bonds
at s6h and interest. yielding $40
per oent. The bonds are non call
able for fifteen years and thereafter
they are to be callable at ITO and
interest. with the premium decreas-
ing v per cent per, annum to lol
IN lbop. Auoy ANo W soNo Sho oS'a~
ut Of an annual siqking fund com
mencinS May. /: 1871. sufficient TO
retire the entire issue by maturity.
This 10 the initial financing to. be
done by the present Kingdom In the
form Of an external loan. The new
State, which has . population of
about 13,00o. 900 repressnts former
Serbia, Montenegro and parts OF the
old Austrian empire. The previous
external loans Of former Serbia have
had an excellent. record. The objects
Of the loan are principally to rshabtn'
tate the railroad system Of the coun
try, including the construction OF .
new line from Belgrade TO the Adri.
atic. Thee proceeds Of $6.o00.ooe
bonds are to be applied 70 the gem
eraI needs Of the kingdom.
.offerinr- 10 also made Of an To-
sue Of 10, ,ooe 900 pesos normal value
35 cents each) Of the Republic OF
Chile interior debt Of the state eight
sinltinE fund bonds. They are free
from al Chilean taxes, and. in ac'
cordanoe with laws passed by the
Chilean congress for the construc'
ton OF irrigation works. the bonds
have BEEN AUTHORISED a. . direct, un'
auaiified obligation Of the govern.
ment, and may be bought by Chilean
banks and deposited In the treasury
n srainst the issue Of currency. The
entire issue will be retired in about
twenty.eisht years. The bonds are
In coupon FORM. in denomination OF
10000 pesos.