New Britain herald., 1926-12-29
FINANCING PLANS
 RAN HIGH IN '26
Investments in Home and
 Foreign Proposals Increase

New York. Lee. z9 CP-American eign and domestic investments at record breaking rate in 1926. Capi- tai f1otations in the form of bond and stock issues for governments, muni- cipalities and corporate enterprises during the year approximated s7.- 000.000,000. and final compilations may show that even this unprece- dented total has been eclipsed.
 For the third year in succession, foreign borrowings in the United States exceeded billion dollars, al- though the total was slightly below last years high record. More than half of this money wont into produce tive enterprises, whose demands for the first time were greater than those of foreign governments.
 Illustrative of the broadening character of the investment market was a remarkable rise in the price of bonds to the highest level in more than a decade despite the enormous volume of new financing. Foreign obligations scared to heights which surpassed the most optimistic ex- pectations of the underwriting bank CTS; some of the United States treas- urysissues commanded premiums as high as 10 per cent for the first time in many years and countless corporation bonds sold at the best prices in their history.
 The appreciation in the market value of bonds was the more signif- cant because it took place in the face of a smaller volume of dealings. The mately s3.000, 100000 compared with $3.500,000,000 in 1925 and s4,0O0,- 000,000 in 1924.
 Progressive improvement marked the course of price movements throughout the year. Changes in the federal reserve rediscount rates caused temporary interruptions to the trend. but in the main fluctua- tions paralleled those Of the pre- ceding two years when prices work Cu up nun tIiCll Jiiludl iONo lO new high levels in December.
 A strong buying movement which was in progress at the beginning of the year was little disturbed by the January advance in the New York federal reserve rate from 1-2 to per cent. As this demand began to taper off in the spring fresh impetus was provided by reduction in the bank rate to 1-2 per cent. When the rediscount charge was return ed to f per cent in August, the mar ket hesitated for time until it was assured that there would be no fur ther upward revision. Prices then started to swing toward higher levels again, with several surprisingly wig orous rallies developing from time to time as the year drew to a close.
 In view of the steady rise in bond values over the past several years, the conviction has grown that varia- tions in rediscount and money rates have been only transitory influ- ences in shaping the trend Of prices. Among the more fundamental fac- tors contributing 10 the competitive bidding for securities of this type have been the great expansion in the country's reservoir of investment funds: the growth in the number of bond buyers. including the small in vestors and corporations with large surpluses: the greater stability of money conditions and the reduction of some six billion dollars in the fed eral debt since the end of the world war.
 For the first time in several years there were no large receiverships to play havoc with the bonds Of financially distressed companies. On the contrary, considerable progress was made in reorganizing the Chi cago, Milwaukee X St. Paul railway, the Virginia Carolina Chemical com- pary and the American Writing Paper company, with resultant re- covery in the prices of their securi- ties. Conditions were unfavorable only in the real estate bond field which was adversely affected by the collapse of the Florida land boom and the failure of a large mortgage