The Birmingham age-herald., 1924-03-24

MONEY SLUMP
 BOOSTS BONDS
Call Rates, Lowest Since War, Divert Surplus <
 To Investments

NEW YORK, March 23.-(By Asso- ciated Press.) s.)--Substantial recovery in bond prices last week. was attributable directly to diversion. of Wall streets flood of surplus money into the in vestment market. With the official rate on call, money falling to 2h per cent, the lowest since the war, and "outside" loans contracted on per cent basis, institutions hastened to place their excess funds in United States government issues. short-term maturities and other liquid securities of a high-grade nature. The result was & quiet but steady appreciation of bond values, f%
 With the market quickly swept clean of short-dated investments, the govern. nsnt's obligations formed the princi- pal outlet for the banks plethora of cash. With the exception of the first 311s, all liberty bonds attained new peak prices for the year, while the treasury 4s were bid up to the highest level ever recorded.
 Mortgages Taken
 Brisk injury for high-grade railroad and corporation mortgages, which banks normally are reluctant to hold in large amounts, also measured theiI need for finding employment for money at higher return than offered on the stock exchange. Issues legar for say. ings banks, insurance company and trust fund investments attracted an especially good demand. Current easi- ness of money. did not Impair specula. tive interest in, the bond market, and renewed activity developed in low and medium priced Hens.
 The dearth Of new financing, which r. H-. 01 farAnr rraA 100000, for the week, brought from in vestment bankers suggestions that cor porations cover their 1924 requirements this spring on the theory that the nor. nal cycle of the bond market, which includes fall boom, would not be eff. fectiye this year, Political considera. tion, 1t was asserted, would likely tion, interfering with the usual autumn revival of activity.
 Southern Makes Test
 The innovation of competitive bid ding for railroad issues continued tC arouse interest in investment circles The Southern Railway. in asking ap proval Of issues already sold to bankers 1t was said, was ready to make a test case of the new method. Plans fol refunding Baltimore and Ohio's $130, 100000 maturities will be submitted tC the commission at an early date tC avert a possible rejection of arrange ments with bankers in the later stages of progress. The roads application tc issue a $3,000.000 issues was said tt mark the first step in its financing pro gram. .azs
 An aftermatch of the Japanese loan brought to light in connection with ths relaxation of money rates last week was the influence of the deposits or the money market. Only small DOT tion of the proceeds so far have beer withdrawn, leaving approximately 100,000,000 available for Wall street loans. With this amount of money overhanging the market, a sudden in. crease in the normal flow of funds to this center was quickly felt.
 Aside from the sale of $14,000, ,0OC Southern California Edison 6s, the weeks bond issues were small Offer ing of s7,500,0OO 15-year 6k per cent bonds is under preparation by the Continental Motors corporation for the coming week at a price of about 95h Bankers also are underwriting a S1O,. 100000 issue of Duquesne Light com pany 5hs and $S,000 900 Birmingham Railway, Light and Power bonds.