The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-08-07
FOREIGN BONDS
SOUGHT BY
BANKERS
Heavy Buying Of Foreign Gov
eminent Bonds Based
on Higher Interest
BY MONROE ROBERTS,
International News Service staff
Correspondents.

correspondent
NEW YORK, Aug. 1.-THE heavy .
buying of foreign government bonds
by bankers and big investors is
based to a large extent on the
higher coupons carried by these
bonds, compared to prime industrial
issues. II investors here can con-
vince themselves that these bonds
are safe, there is every reason to
prefer them to domestic issues yield
ing 4 to 6 per cent, even though
the latter may be wholly or parti-
ally tax exempt.
The rise of IA points in prices Of
French government bonds, IL points
in Austrian government secured Z
per cents and Is points in some
of the foreign municipal bonds since
the first OF the year reflects in
part the easier money conditions
now prevailing; but the heavy buy
| ing which sent prices upward
sharply in the last two weeks is
due largely to the better credit
among American investors as a re-
suit Of the prospect of substantial
reparations payments by Germany.
Prior to the war Europe, and par
ticularly Great Britain and France,
vas banker to the South American
republics, Canada, Australia, and
even the United States made good
use Of all the surplus cash it could
borrow over there. An Austrian or
a French or Belgian loan was never
offered to Americans in those days.
There were too many projects, kill
ing developments in comparatively
new country to admit of the ship
nent of capital abroad. But today
the American investor is called
uIon to finance the requirements
Of other nations, and he can do It
because at the present time there
is a plethora of capital here, and
industrial plants are not suffering
from the want of funds to give
them normal expansion.
If history is to repeat itself trade
VIII follow loans, and Americans
will find new markets opening up
wherever their capital, safely in
vested, blasses the way. The re-
v;val of industry in Europe will
Usher in a period of keenest COM
Petition in world markets, ana
American investors must cooperate
with business leaders to insure
worldwide commercial conQuests.
Issues Today.
Harris, Forbes & Co. and Coffin &
Burr, Inc, are offering a new issue
Of $3.50, 900 Central Maine Power
Company first and general mort
| gage gold bonds, series C 5h per
cent, due 1949 at 80 and interest,
!! yielding about 5.57 per cent. The
Central Maine Power Company
serves 17S cities, towns and COM
munities and more than 400 indus
trial establishments in twelve Of
the sixteen counties in Maine.
William r. Compton Company,
Halsey, Stuart & Co., Inc, and
Harris, Forbes & Co. are offering a
new issue of 100000 Atlantic
joint stock land bank per cent
bonds, dated July 1, 1924, and due
July 1, 1854, optional 1884, at
price Of 101 and accrued il, crest,
to yield over 4.85 per cent to OPP
tional date and 5 per cent tn n
after. This bank, located tat
and South Carolina under Federal
charter and Government super
vision. The bonds are collaterally
secured by either first mortgages on
farm lands or United States Govern
ment bonds or certificates Of in
debtedness. The bank is under pri-
vate ownership and management.
Horwitz G. Co. and Prendergast &
Co. are Offering a new issue Of
81, 100000, City Of Greensboro, N. c.,
AZ per cent street improvement
bonds, dated August /, 1924, due
serially 100000 February 1, 1926,
to 1895, inclusive, at prices to yield
$50 per cent to 4.45 per cent, &C.
cordIng to maturity.
Robert Blahut is offering a
block Of $250,OO0 Republic Of Saliva
dor customs first lien per cent
sinking fund gold bonds, series c,
at ,S0h, to yield $50 per cent.
Pynchon & Co. are offering an
issue Of 10000 shares of Middle
West Utilities Company per cent
prior lien stock at $97 per share
and accrued dividend, to yield about
1872 per cent.
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