Evening star., 1925-01-25
SEASONED BONDS
FIRM DURING WEEK
Comparisons Reveal Steady
GainS-Fine Showing by
Reserve Bank.
BY GEORGE t. HUGHES.

NEW YORK, January 24.-The in
vestment market at the end Of the week
Is in thoroughly healthy condition For
one thing, the value OF new offerings
has not been excessive, and there Is no
pressure upon it from unsold portions
OF recent issues.
Seasoned bonds have all been steady.
and for those which yield little more
than the savings bank type there has
been such persistent inquiry as to ad-
vance quotations materially. The buy
ing. also. seems to be for investment
rather than for speculative account.
Both financial institutions and indiVid-
ua investors have been picking up de-
sirable blocks all week. At the same
time there is no large supply for sale.
and if present conditions continue the
bond market should be in for mod
crate advance.
Money Remains Easy.
Money remains easy, not only for call
funds on the Stock Exchange, but for
time accommodations up to six months.
Inc weekly statement of the Federal
Reserve banks makes a strong showing.
RediSCounts and acceptance purchases
in the open market are both lower. while
the reserve ratio is higher. The fact
that Liberty bonds have been so firm IN
diCates that there is no prospect ol
higher money in the near future. All this
is helpful to bonds and to other invest
ment securities of established rating,
such as the high-grade preferred stocks.
Many authorities assert that the bond
market is now at the peak of prices, ana
that any change must be toward lower
levels, but there was nothing to sub
stantiate this theory in the course OF
prices this week.
While the advance in speculative
FrNrn nG1Nga dot n
crea sed business activity which would
create new demands upon the oanks'
and so influence the money market no
such expansion as yet has appeared.
Probably the stock market is long
wav ahead of business, as is generally
the case.
Comparisons show Gains
The gain in bonds has been so
gradual and so slow as to be almost
Imperceptible 1t is only by COM
paring prices over a period OF seNeral
weeks that one realizes how quota !
tions have been creeping upWaro'
This applies to domestic, not to tor-
etgn bonds. For theEe home issues
the average now is not only at the
highest for the year to date, but
higher than at any time in the past
six wears The foreign bonds DO not
make quite so good showing. Stili
the avera ge is now at the hlghest
for the month and not greatly beloW
the high point of last NoNemo
The record for this class was MADE IN
April, 1922, and has not since neeh
eoualed. Foreign bonds dealt In In
this market .being nearly all Govern
ment obligations, they responded 10
nolitical developments rather than 10
money rates or Industrial changes.
Probably the agitation over the
French war debt TO the United states
Government has had depressing et-
feet upon foreign bonds. Certainly IL
we except the French issues, the for
eign bond market this week has dls-
nlaved a better tone than in some
time. Selected issues have even been
strong, including some of the north
ern European bonds and certa in South
American obligations. AS the price
level for domestic bonds rises there
is sure to be a turning toward these
gh-yielding foreign descriptions,
where the return seems out OF pro-
norton to the risk. As for the
French situation, no one can predict
the solution, but holders of French
bonds are not disposed to sacrifice
them. and II, as must eventually be
the case, a satisfactory agreement Is
reached, price appreciation in the
French group should be rapid. Eight
per cent is compensation for a good
deal of risk.
biggest Railroad Problem.
Interest continued acute in the re-
funding plan for the almost S5O.OOO,-
600 of Chicago. Milwaukee and St
Paul bonds which mature on June
i next Plans for caring for this
maturity have not yet been an
nounced, and it represents the largest
single railroad problem to be solved
this year The total amount of rail-
road maturities of 1925 Is over $780,
900, 900 of which more than S2l5,-
900 900 represents three systems, the
Baltimore and Ohio, the New Haven
and the st. Paul. Most of the b. & o.
requirements have been arranged for,
while the New Haven expects to ac-
compIish its refinancing by selling
securities direct to New England
manufacturers AMI business men.