The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-05-14
LISTED ISSUES IN
GOOD DEMAND AS.
]. {. BONDS DROP
Marked Improvement Shown
In Rail Mortgages And In
duStriaI Liens

NEW YORK. May 13.-(By Associ-
ated Press MARKED Improvement
was shown in the prices of railroad
mortgages and majority of the in
dustrial company lines in the trading
last week on the New York Stock ex-
change. United States government
bonds. however, were inclined to be
reactionary and most of the foreign
bonds sagged slightly.
The decline in new offerings. the
new issues. aggreg eating only SLIPS,
600. as compared with SS2,47S,000 the
previous week, undoubtedly had a
considerable influence on the in
creased demand shown for listed is
sues Market observers attributed
the relative heaviness of United
States government bonds to natural
reimbursement of prices in view of a
higher rate to be paid on the gov
ernment's forthcoming new financing.
which was announced last Monday.
The new government issue at the
rate of "a per cent was somewhat of
a surprise, the general expectation
having been that rate would be 5
per cent. So, while the "a rate
was considered a favorable factor, it
was natural to expect the Liberty is
sues to adjust themselves to the new
interest rate.
Market FavOrably Influenced.
Expression of confidence in the
ability of American business men to
cope with the present era of pros
perity by Secretary of Commerce
Hoover. and the statement by Secre
tary Mellon that he considered all
danger of initiation had passed, also
were favorable influences during the
week on the bond market.
Local international bankers appear
confident that America will be asked
to participate IN the proposed $780,
G0o,00o Austrian loan and state they
know the loan, if made. will prove at
tractiVe to investors in this country
The bandit outrages in China, it is
thought, ended all chances of floating
q Chinese loan in this country at any
early date. Chinese government rail
way bonds reacted slightly as a result
of the train holdup.
South American bonds eased slight
ly during the week, probably reflect
ing the readjustment of Latin-Ameri-
can foreign exchanges to the lower
sterling prices. Mexican issues were
depressed somewhat on announce
next week in the date for issuing the
call for depositing Mexican bonds I'M
der the debt agreement.
Industries Advance.
With the exception of gas COM
pany lines. depressed by passage in
Albany of the dollar gas" bill, most
Industrial bonds moved to higher
ground. Sugar company bonds ad-
Vaneed from 2 to points as a re-
suit of the dismissal of the gov
ernment's suit against the New York
Coffee and Sugar exchange. Copper
company lines also climbed on re-
ports that the surplus supply of the
red metal has been reduced. Steel
company issues held steady despite
the downward course of the stocks
and the oil companies bonds also held
firm throughout the week.
one of the features of the trading
was the great increase in the demand
for railroad mortgages, gains in this
group ranging from large fractions
to more than 2 points.
Important new offerings during the
week were: $7,S0000 of per cent
| to 10 year equipment trust certifi-
Gates of the Erie railroad at prices to
yield 5 so to 6 .05 per cent. according
TO maturity; 100000 in per cent
S0-year farm loan bonds of the Kan
sas City Joint Land bank at 102h to
yield 4 20 to 4 rs per cent; S4,000.00o
in per cent l0-year mortgage bonds
of the Washington Gas Light COM
pany at par; $2,500,000 in 6 per cent
44year first mortgage bonds of the
Tennessee Electric Power company at
"a u to yield 6 AS per cent, and $4,000
000 in u per cent 15-year convertible
debentures of the Pennsylvania pub
lie service corporation at 81 to yield
6. SO per cent.