The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-05-03
B D n D ISSUES
GA|NDUR|NG
WEEK
W seftts $685.
Hearst Issue Of $4,000, 1000
Proves to BE Distinct
Success
By MUNROE ROBERTS.
Copyright. 1924. ~ Cosmopolitan

News Service.)
NEW YORK. May 3.--Reduction
Of the New York Federal reserve
rediscount rate. probably the most
important financial event Of the
year, turned, what threatened to be
heavy and sluggish bond market
into a buoyant affair during the
past week. -.
Although the fixing Of the lower
rate was simply a readjustment to
prevailing open market figures, the
banks decision was considered an
official recognition Of easy credit
conditions certain to continue for a
long period. The immediate result
was broad and active buying
movement In United States Govern
ment bonds which responded to the
rate cut with the largest advance
recorded this year. Trading was
excited at times, most Of the out.
standing issues topping previous
highs by comfortable margins and
the tax exempt Sks joining the
other Liberties in selling at or
above par. Sharp gains were also
made by Federal farm loan bonds
and other gilt-edged securities.
Short'term obligations were hardly
obtainable and only at prohibitive
prices, while municipals, especially
those with short maturities, were in
lively demand.
Naturally, the overflow invest
ment demand was felt in the me-
dunn and lower grade bonds, espe.
cially In the railroad descriptions.
Some OF the industrials, however.
continued soft, particularly the
various classes of Wilson issues.
Bethlehem Steel bonds were TEN.
porarily unsettled, in connection
with the flotation Of q $50, OOO, 900
bond issue.
Little Of interest transpired in
the foreign government group, but
steadiness was displayed through.
out. Bolivia per cent enioyed a
brisk rise In connection with negoti.
atoms for a new loan which will
probably be offered next week and
the calling for redemption Of that
country's per cent sterling loan.
New bond issues this week totaled
about $125, 100000 against SCI, OOO,.
900 the previous week and $S3..
900, 900 the corresponding period last
year. The flotation of $40, 000, 900
Dutch government bonds was the
| most important DEVELOPMENT, and
| served to focus attention on the
probability of heavy foreign financ.
ing operations during the remainder
| or the year. 1t was pointed out
that the lowering Of the rediscount
rate would be very helpful in this
respect, particularly in connection
with the forthcoming German loan.
| Reports were current that the Ru.
| manian government had initiated
negotiations for an American loan,
but rumors that Japan was about
to enter the United States money
market for $15o,000,000 new bonds
was denied.
Among the domestic offerings the
most important was an issue of
| $12, 00O,O0 Hearst Publications, Inc.
6h per cent bonds. The operation
was distinct success. and the de.
mand for the bonds, according to a
statement by the underwriters, indi-
Gated the confidence the investing
public has in the issue and that well
secured bonds Of newspaper and
magazine publications are held in
| high regard.
Public offering was made today
by Dillon, Read and Co. Of an issue
of $1,000, 900 General Leather Com.
pany first mortgage fifteen-year ca
per cent sinking fund gold bonds
at 80, to yield about 6:55 per cent.
The Central Leather Company, &C.
cording to reports, has opened nego.
tiations with bankers looking to the
refunding of $23,392,4 bonds ma
turing in 1925.