Evening star., 1925-09-20
NEW ISSUES GRIP
BUYERS OF BONDS
$50, 900, 900 Offering Quickly
SoId-Averages Higher
During Past Week.
BY GEORGE r. HUGHES.
oeciai Dispatch to The star.

BY GEORGE r. HUGHES.
Special Dispatch to The star.
NEW YORK, September 1s.-Testi.
mony to the strength Of the invest.
ment demand this week came In the
favorable reception accorded to new
issues. Such financing has been on
large scale, and It has all found q
ready market.
The most important Offering was the
$50. 100000 Bell Telephone Of Pennsyl.
Vaflia 5s, which, Notwithstanding com.
paratively low yield. promptly went to
a premium as soon as listed on the
exchange. In the same way the new
German Agricultural Bank Is were
oversubscribed, allotments being cut
down heavily. and these, too. COM
manded a premium over the offering
price in the open market. The fact
that two investment opportunities DIFF.
fertng so widely in character found
such ready absorption is convincing
indication that the market Is now in a
position where new business can be
done successfully.
Bonds Average Higher.
AS far as the general market is con-
cerned. buyers Of seasoned bonds Of
the strictly investment type are con.
and insurance companies. The IN
vidual investor. stirred by the activity
and strength in stocks. Is looking for
something more speculative than high
grade bonds. At the same time the
bond market has been very firm, and
although dealings have not been par
ticularly large. prices have been well
sustained. Taking all grades. the
average price Is a small fraction
higher at the end of the week than
it was at the beginning.
Nor does there seem to be any rea-
son to expect any lower level for
bands, as a whole. in the near future.
The money situation is sufficient as
surance of that. The quotation for
call funds secured by stock exchange
collateral Is no criterion, but there
are other Indications, all pointing to
reasonable ease in money.
Interest In Foreign Group:
Interest in the foreign situation is
keen. The advance in foreign bonds,
which was so prominent character.
istic of last weeks market, went on
much more slowly this week, but
prices held firm. Probably the lull
will continue until new light is to be
had on the disposition OF the war
debts to the United States Govern.
ment. On that account attention
will be concentrated on the negotia-
tions with the French commission
which are to begin at Washington in
another week.
1t Is universally admitted that the
French problem Is the hardest one of
all to solve and that II a satisfactory
agreement can be reached in this
case the rest will be comparatively
easy. 1t is not easy to see how the
conflicting views of the French and
the American representatives In
these negotiations can be reconciled.
but once that is accomplished, If it
is accomplished, the whole foreign
bond list will be stimulated. The
fact that prices for French securities
have moved over SO narrow q range
shows that traders are not inclined
to speculate very much one way or
the other pending the outcome at
Washington.
Preferred Stocks Active.
One feature Of the market which has
aroused good deal OF comment has
been the active inquiry for good pre-
ferred stocks, some of the more sea-
soned issues Of which are selling to
yield but little more than bonds OF
the same grade. This movement Is
extending to the higher yielding pre-
ferred issues on the theory that the
advance in stocks has put behind the
preferred shares larged equities. 1t
takes a good deal of buying to make
any impression upon prices, but II the
present demand keeps up higher quo
tations for this kind Of investment
are assured. The view is commonly
held that preferred stocks move with
investment bonds, but the fact Is that
Just now they are showing more SYM
pathy with stocks than with bonds:
probably the opportunities for
profitable purchases in this group are
better In the unlisted than in the listed
preferred issues and probably the
margin of safety in comparison with
price is greater In the public utilities
than anywhere else.
(CopyrtRht. 1o2b.)