Evening star., 1924-03-02
PEAK NOW REACHED
IN NEW FINANCING
Next Issue to Be $45, 900, 900
in Bonds for New York
State Soldier Bonus.
TRADE OUTLOOK is GOOD
Plenty of Bank Credit for All
Spring Needs-Railroad Bonds
. Stronger.
TRADE OUTLOOK is GOOD
By GEORGE r. HUGHES,

Special Dispatch TO The Star.
NEW YORK, March 1.-Cnderlying
investment conditions continue OF u
character to inspire confidence
among investors. 1t is true that the
edge is off the market. The upward
movement which so long was char
acteristic Of the seasoned bonds is
obviously over. Prices are steady
however. and absorption of offerings
is consistently good.
The fact that investors already
have brought new capital issues as
gregat:ns more than quarters
of billion dollars in par value has
not prevented bankers from dis
tributing various new issues during
the last week. That demand CON
tinues good was demonstrated by tho
fact that within ten days or so up
wards of s2l,000,000 par value OF
railroad bonds were disposed of prl>
vately-that is to say, without making
public offering.
New Financing Very Heavy.
February saw the completion OF
the greater portion of the important
financing which has been under con-
sideration, according to investment
bankers. The volume Of new corpo-
ration emissions probably will be
smaller for some time to come. AZ
maturities will be relatively light
this year. refunding operations should
not be large. The volume or mUnlc-
ipal and state loans already is de-
clining.
1t is probably that years will elapse
before the market witnesses such All
enormous quantity of tax exempt
bonds as flooded it in the last t"p
years for not only have nearly aJl
of the various state bonus bonuF
which we're under consideration beeh
sold, but highways. public buildlhA
and other state, county and municl-
pal projects which were deferred be-
cause of the war have been nnancSt
to such an extent that the peak "
that load has been passed.
$45,OOO.OOO Bonus Issue.
The only big piece Of state tinansin-
in sight at the moment is the Siio.ov.,
600 soldiers bonus bond issue OF t.u
state of New York, which was author
lied by voters and approved the othel.
day by Gov. Smith. The work vi
financing the bonus will probably be uIi-
dertaken i'll April. Bankers who de-
clined 10 bid for a state bonus Doip
bid for the bonds. because they beliefS
that the market would absorb them
readily. 1t is predicted in banking CIR
cles that the bonds Will be one 10
TWENTY-FIVE year serial Seturllieo oi'h
will be offered TO yield from per cent
to Al. per cent on the investment.
So far as the market for outstanding
bonds is concerned. the outlook is al
least for maintenance of approXimateiy
current prices. Further recovery III
quotations must be depenoehe .erh
largely upon economic and monetar!
Developments to come. of which only
surmise can be made at present The
signs of the times point to a period OF
at least fairly active trade and pros
porous industry.
Credit Expansion Noted.
The expansion of bank credit which
invariably attends the spring business
season already is in evidence. How
ever. it has not resulted in any rise IN
commercial money rates. Moreover,
stock exchange collateral funds arc
! Ioaning at moderate rates. II is the tes-
timony of bankers that sufficient credit
| is available to meet the requirements OF
business without creating a money
stringency.
That situation is partly the result
OF the continuing inflow OF gold from
Europe Much of that gold has been
going into circulation, as. witness the
| fact that gold reserves Of the Federal
Bank system have not expanded in re-
cent months, despite the growth OF gotI
imports. Some bankers think the trend
of money rates will be down rather than
up this year. even with active business
In that event bond prices should at least
be sustained. They might rise further.
Railroad Bonds Improve.
The outlook for railroad bonds has
been improved by the probability that no
radical legislation affecting transporta-
tion companies will materialiZe in
Washington this year and the process
| of rehabiitatng railroad credit there
fore promises to continue. With the
Industrial situation growing better, the
position of Industrial bonds should be
strengthened.
DOWNRIGHT 1924