New Britain herald., 1928-12-29
BONDS EClIPSED
BY STOCK DEMAND
Interest On Plrt Of Buyers Il
Low Point


1t WAS neithe: weak. nor strong.
,Est neglected and dull as the in
,esting public became stock mind
cd and. inspired by sudden and
wide profits made in stock trades
saw no attraction in the slow ana
small return from
bonds.
All the economic factors seemed
10 work against the market. EApo'l
OF more than $50e.00U,0oo in gold
and stock market speculation
caused apprehension over the enor-
NOUS expansion of credit and ad-
vance in money rates which was
quickly reflected in reduced bond
sales and prices.
While the market has fall
backlog OF institutional buying or
icrs. this business declined when
a change in the law expanded the
possibilities of institutional invest
ment by adding preferred stocks
to the legal list. Corporations de
vrloped tendency to do their new
rather than bond offerings.
Money Rates Rose
Time money rates, which or"n'c
the year around IA per cent, ros.-
TO per cent or more. There wa,
a growing dissemination to LOAF,
funds on time and, especially dur
ing the last quarter, the market
felt the pinch Of circumstances
which threw vast funds, corpora
ton as we'll as bank. into call loans.
Day by day trading generally
was OF small volume after the first
quarter. New issues dlaiiy be-
came fewer The combined aver
:se price OF ~ leading issues. COM
piled by The Associated Press. ais.
showed steady decrease. In on.
way. however. the. year set 4 rec
ord. Bonds and notes OF corpora
tons called in advance Of maturity
reached new high total Of 81 500.
5000. or nearly $S5n."o". 900
above the previous record estab-
lished in 1927.
Important developments of 1925
included decision of the New York
Stock Exchange to admit foreign
government issues to the trading
list. This action generally Was re-
carded as desirable because. Of the
possibilities OF facilitating settle
ment OF International trade hal
;inccs and OF making such secur,-
Ties NOR. acceptable for collatera.
purposes. Professional traders aisu
We're pleased when the exchange
opened a new trading room. giving
them 5000 square feet for their
activities
January found tho market mod
crately active in response to rein
vcstmunt OF Ia rye interest am,
dividend payments. Corporatio.
,,ond p,icr averages reached the
highest levels in recent ycaIs. Pub
lie offering of foreign issues show
I'd a sudden gain. prominent beins
loans of s45,o06 600 for Chile ana
Sl7 600, 900 for Greece. The treas
ury accomplished its first 1929
cent notes tor about "A quarter Of
the Third Liberty Loan las out
standing. IL
The market turned dull and re.
dictionary IN February. although
foreign bonds were active on buy
ins by investors attracted by the
higher yields. New issues were
chiefly for refunding operations.
Recover tn March
Prices recovered in March. new
offerings expanded to the largest
volume since December. 1927. due
largely to issuance OF 100000. 900
St. Louis San Francisco railroad
4 I-2s. a $4,000. 900 consolidation.
loan for the Kingdom Of Norwa,
end ajor portion of $4,000. 900
loan for the republic of Chile.
Money rates firmed in April >a
gold exports continued and fears
were aroused by vast expansion OF
credit to financ,- stock speculation.
Market activities effected public
interest in stocks by ccntering
=
lille issues. N"S offerings were
fairly heavy. among the larger be-
ing so4.00n, GOO.
Chicago Miwa ukec and St. Paul
railroad general mortgage LIS
assumed by the new Chicago. Mil
wauk"e, and ST. Paul and Pacific
railroad under reorganization
pam. Largo foreign issues includ-
ID s5j.oCo.o"o Kingdom of ben
n,arl; ard .12.0oo.0oo city of Copcn-
E2g"n honds.
May brought pyrsi tent pric.
1""l'n" L. s. Government ohliGa
lions reached new low levels
Traders W, re rend.rcd cautious by
In" continued expansion in brok-
rrs' loans and by efforts TO curb
&c t'irc speculation through cor
troll OF money markets. New for
'icn issues increased in volume,
including $50 600. 900 Common
wealth OF Australia. $40 oon,hon
German Central Bank OF Agricui-
trre and SEQ noo 900 Nortgag"
Lark Of chile.
Heavy flotation Of ne" issues IN
n" "ar'v months brought stagna-
ion in June. and prices again sag
ed. TIL" treasury offered an ex-
rhHrg, OF certificates for second
Liberty Loan bonds. hUt they wnrr
not accepted in volume and Nh"
TIM" Frri' VAS extended cou'in,.