Evening star., 1926-11-30
NEW BOND MARKS
MADE IN NOVEMBER
Monthly Review Shows U. S.
Issues Among Leaders
in Steady Upswing.
Special Dispatch to The Star.

| Special Olspdtcn W 4ho otaE.
NEW YORK, November S0.-No-
vember was another month of rising
prices in the bond market. While
the general list was pronouncedly
strong throughout the entire period
and the averages reached level
higher than at any time since 1917,
the features were the advance in U.
S. Government obligations and the
upward turn in French and Belgian
bonds.
The buying Of Government l6ans
was centered chiefly about the Treas
ury issues with the result that all
three, the ANS of 1852, the As of
1854 and the 3%s Of 1866, sold in No
yember above anything recorded
since they were first issued. At the
high points the yield basis was ap-
proximately $50 per cent. Apparent.
ly the buying favored the Treasury
bonds rather than the Liberties. al
though the latter were very firm
also because the Treasury issues have
Of the belief that, no matter what
may be the future of money, U. 8.
Government securities are not going
to sell substantially lower for very
long time to come.
One reason for this confidence is
that through operation of the sink
ing fund the supply is constantly
diminishing and there is no other in
vestment of comparable quality for
temporary employment of the funds
of financial institutions or of corpora
tions. There is always sure to be a
steady demand from these sources
for Government bonds.
Thirds Mature in 1928.
1t is now less than two years be-
fore the Treasury will be faced with
the necessity of meeting the maturity
of the third Liberty loan, which falls
due September Is, 1928. The amount
of these bonds outstanding on Decem-
ber 81 last was about $2,725 100000,
but by September 80 the total had
been reduced to $2,354, 100000. Doubt
less further amounts will be retired
before maturity, but even so there
will be large refunding operation to
ment bond issue, the Treasury 3% s,
carried coupon lower than any other
long-term financing since the first Lib
erty loan in 1917.
When the time comes to offer a
new bond issue it is generally be-
lieved that it will be on a basis to
yield the investor only 31a per cent,
all of which measures not only the
Improvement in the investment mar
ket in the past 10 years but the in
creasing demand for Government
bonds. Meanwhile the Treasury De-
partment will have $3.50. 200 900 Of S11
per cent certificates of indebtedness to
pay off on December Is next, which
is also the quarterly income tax pay
ment date. The chances are that this
will be cared for with q new short
term issue, possibly 31a per cent OBJ
legation. 1t Is not likely that any
long-term financing will be attempted
yet.
The strength in the general mar
ket was founded on the abundant
supply of money and encouraged by
the distinct downward trend of COM
modify prices. The very moderate
hardening of money rates during the
month was only occasional: notwith-
standing seasonal demand for busi-
ness purposes the normal condition
was one of continued ease.
An Unusual Procedure.
In the domestic investment field
as we'll as in the foreign the rela-
tion of market price to redemption
price was increasingly interesting to
investors. Continued refunding of
capital obligations on terms more
Favorable to the corporation involved
led bondholders to scrutinize their
lists and the bond buyers to check
up on the callable price on new Of
ferings. The financing program of
the Standard Oil Company of New
Jersey announced in the latter part
Of November was an object lesson
to investors along this line.
That great Industrial organization
cut down the charges ahead Of the
| common stock by the retiring Of it's
preferred issue on which the dividend
requirement was per cent and the
substitution in part of a debenture
| bond was a per cent coupon and
in part of additional common stock.
This was an unusual procedure in
that the stock, even though pre-
ferred, was in a position to do
exactly the opposite, to increase that
part Of their capital represented by
stock.