San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-02
BOND MARKET
PRICES FIRM
THROUGH WEEK
Investment Conditions In
spire Confidence Among
Investors.
OUTLOOK IS GOOD
Large Quantity Of Tax Ex-
empt Securities
Floods In.
OUTLOOK IS GOOD
By BYRON SELLER.

New York, March 1.-Underlying
investment conditions continue in
spire confidence among investors. 1t
is true that the edge is off the mar
Eet. The upward movement which 50
long was characteristic of the season
ed bonds is obviously over. Prices
are steady. however. and absorption
of offerings is consistently good.
The fact that investors already have
bought new capital issues aggregate
ing more than three-quarters of bill
lion dollars in par value has noe
prevented bankers from distributing
various new issues during the past
week. That demand continues good
which is demonstrated by the facs
that within ten days or so. upwards
of S21,OOO,OOO par value of railroad
bonds were disposed of privately. with
out making a public offering.
February saw the completion of the
greater portion of the important
financing which has been under con-
sideration, according to investment
brokers. The volume of new corpora
ton emissions probably will be small
er for some time to come. As maturi-
ties will be relatively light this year.
refunding operations should not be
large. The volume of municipal and
state loans already is declining.
Flood Of Tax Exempt Bonds
1t is probable that years will
elapse before the market witnesses
such an enormous quantity of tax
exempt bonds as flooded il in the last
two years, for not only have nearly
all of the various state bonus bonds
which are under consideration been
sold. but highways. public building ana
other state, county and MUNICIPAL
projects which were deferred because
of the war have been financed to such
an extent that the peak of that load
has been passed.
The only big piece Of state finan-
cling in sight at the moment is $45,-
100000 soldier bonus bond issue Of
the State Of New York, which was au-
thorized by voters and approved By
Governor Smith. The work of financ-
ing the bonus will probably be I'M
dertaken in April. Bankers who ie-
clined to bid for state bonus bond
issue three years ago are ready now D
bid because they believe that the
market would absorb them readily. 1t
is predicted that the bonds will be one
to twenty-five-year serial securities
and will be offered to yield from 4
per cent to 4 Ia per cent on the in
vestment.
Outstanding Bonds Outlook Fair.
So far as the market for outstand-
ing bonds is concerned, the outlook
is at least for maintenance Of APP
proximately current prices. Further
IN fiA,,a IN.
pendent very largely upon economic
and monetary Developments The
signs of the times point to a period
of at least fairly active trade and
prosperous industry. The expansion
of bank credit which invariably at
tends the spring. business season al
ready is in view. Moreover, stock ex-
change, collateral funds are loaning It
moderate rates. 1t is the testimony of
bankers that sufficient credit is avail
able to meet the requirements Of bus
mess without creating a money strin-
gency.
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 fed
eral bank system has not expanded IN
recent months despite the growth Of
gold imports. In the event that
money rates will be down bond prices
should at least be sustained. They
might rise further.
The outlook for railroad bonds has
been improved by the probability that
no radical legislation affecting trans
portation companies will materialize
in Washington this year and railroad
credit promises to continue. With the
industrial situation growing better the
position of industrial bonds should be
strengthened.