The Birmingham age-herald., 1924-01-28
LIBERTIES LEAD ENTIRE MARKET
Low Money Stimulates Buying And Experts Measuring In-
 fluence On List

NEW YORK, Jan. 27-(By the Asso- ciated Press.)-Advances in the price of liberty bonds, which sent one issue to par for the first time since 1922 and pushed others to new high levels. led the entire bond market in strong upward movement during the past week. Continued low rates for money, diverting funds into the investment market stimulated buying of the lib- erty Issues and exerted reassuring influence on other sections of the list as well. s---~ssr
 In investment circles, the action of liberty bonds was accepted as the coun- tions and the movement was inter- preted to forecast continued ease in funds. The market felt the influence of pending developments in the tax situation. Confidence that the Mellon tax reduction plan would be adopted and the belief that action would be talk en to limit the issuance of tax-exempt securities aided both liberty and mu- nicipal bonds.
 Short-Term Issues Strong
 Ease of money rates during the week also was reflected in the strength of short-term and convertible issues throughout the industrial, railroad and public utility groups.
 Low-priced, speculative issues espe-
 
 attractive yields, and many of them scored substantial gains.
 Copper and sugar bonds responded to improved trade conditions in these industries. Several convertible issues including Cerro De Pasco 8s, Punta Alegre Sugar 7s and. Eastern Cuba 7hs, established new high levels.
 Speculative selling, based on fears of cancellation of naval oil leases fol- lowing disclosures at Washington causes sharp breaks in Pan-American Petroleum and Sinclair issues during the week, but the bonds later made partial recovery. Prospects of lower fertilizer prices and the promises of bidders for Muscle Shoals to market the products for five per cent above the cost of production partly accounted for weakness of the virginia-Carolina Chemical issues, which also were af- fected by speculation as to future earn- ings and interest payments.
 LOw-Priced Rails Sought
 Trading in railroad bonds centered in the low-priced issues, which were sought eagerly throughout the week, Moderate gains were recognized by nearly all the short-term obligations. St. Paul's renewing their recent ad- vance after being subjected to profit Northern issues experiencing a sharp rally. Traction issues were strong throughout the week and public utili- ties moved forward with heavy turn over in outside trading.
 The week provided a breathing spell for bankers in the way of new financ- , ing and gave opportunity for clearing up issues previously marketed. In- terest was aroused in the announce ment1 that a nationwide syndicate would offer $50o00,0oo Southwestern Bell Telephone bonds next week and that subscriptions were already pour ing in in considerable volume. Offer ings of the week, totalling some some $60,000 ,000, included S10,000,000 Union Electric Light and Power company 5hs, $7,200,000 Norfolk and Western AIS and $6,000,000 Antilla Sugar 7hs.
 Public offerings will be made on Tuesday of a $5,000,00 issue of per cent prior preference stock of the Con- tinental Gas and Electric company by . local banking syndicate.
 The price will be 921a and accrued dividends to yield approximately YET per cent. Proceeds of the sale will ] be used for general corporate purposes hnd for acquisition of controlling in- ierest In the Kansas Power Securities company.