The Washington times., 1922-08-28
TRADING IN
LISTED BONDS
SHOWS GROWTH
interest centers on Financing
Plans Of a important
I. Railroads. 4"
By MUNROE ROBERTS.

Copyright Is22.Iby Cosmopolhsn News
service.)
NEW YORK, Aug. 2S.--Trading
in listed bonds, has been Of very
large proportions, both for the rea-
son that banks and fiduclary insti-
tutions have been compelled to re-
sort to the investment market in
order TO employ their surplus
funds, and that new issues Of
prime securities have been materi-
ally reduced since the latter part
of July. There has >been an un-
usually large turnover Of Govern.
ment issues, with domestic LIB
erty bonds predomianting, though
French. English. Canadian and
South American government bonds
have made up large proportion
Of the total.
Interest is also largely centered
upon the financing plans OF mum.
ber of the important railroad sys-
TENS. The new adjustment bonds
OF the International and Great
Northern railroad have been the
most active of the lOw-priccd rail.
road bonds, heavy sales in the new
adjustment 6 per cent and the 5
per cent certificates featuring the
market at the present time. This
road operates to the extent Of 900
miles in Texas. and has recently
filed with the Texas State railroad
commission an application to issue
100000 900 first mortgage bonds
and 1900. 900 income bonds. The
total funded debt of The company
when reorganized will be about
$27 900 900. The new company pro-
poses to take over properly OF a
number Of other small roads in
Texas. making them subsidiaries.
During the balance of the Fed
eral Government fiscal year the
Treasury Department will be COM
PEELED to take care of a little over
81, 600, 900, 900 in ,maturitfes OF war
bonds. These include 81 900 900. 900
of Victory notes. which have been
called for December Is. 1922; $780,
0O0.0 in Victory notes due May
20, 1928: $1,569 100000 Treasury
certificates between now and June
l5, 1923, and $s25 900 900 war saw
ings certificates which must be
taken up on January I, 1928.
has slackened somewhat since the
renewal Of the agitation for the
soldier bonus legislation, notwith-
standing that the Presidents veto
is expected to forestall the issuance
Of any Government bonds for new
financing. The question of refund
ing, however, is an entirely different
matter and, should the Government
n
term issue to refund or substitute
for Government bonds which are
coming due over the next two or
three years, a good reception would
undoubtedly be forthcoming from
the investment market.
With the present tendencies in
the money market, and the proba.
bility that the Government could
save a good many millions of dol.
lars in interest charges. II would
appear that the time is propitious
lines.
The steady advance in prices of
all classes of investment bonds has
again brought the years average
to a new high figure. According
to the Dow-Jones compilation. the
average of the ten highest grade
rails has advanced nearly one point
In the last month, 91.Sl; the second
grade rails have gone up 2.31
points to $3.50; ten public utilities.
1886 points to 1851. and ten in.
dustrial bonds 1.15 points TO 96.47:
the combined average is up 1.42 to
91.97. These prices represent ad-
vances Of from 11.60 to 1850 points
from one year ago.