Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-23
BOND SALES AIDED
BY EASIER CREDIT
Volume of New Financing
Grows as Money Rates
Show Decrease.
Special Dispatch to The Star

special Dispatch to The Star.
NEW YORK, June 22.-The volume
of new financing this week has been
In excess of that Of any recent week
as q preliminary to the regular July
reinvestment period. The new issues
have not been large numerically, but
they have been of unusual size.
There was one railroad bond offering
for SIC, 100000 and an industrial issue
of S32,O00,O00 The latter will prob
ably be classified as foreign" inasmuch
rs the proceeds are for the purpose
Of Developing a nitrate plant In Chile.
One strictly foreign bond was for
411, 45O, 900, but as $4,000, 900 Of this
was to refund notes maturing on July
amount of new capital. The other i'm
portant issues were by States and mu-
inequalities and tended to lift the total
of tax-exempt bonds this month to .
fairly large figure.
Money Conditions Favorable.
Bond distribution has been assisted
somewhat by the more favorable money
conditions For the first time this
year time loans have fallen below per
cent. This Is still high, relative to
the return on the average run OF bonds,
be continued. However, 1T turns atten-
ton to branch of the securities mar
ket that has received little support so
far this year and from hte competition
with time money rates has resulted in
almost complete suspension of demand
Another stimulating factor is the ex-
cellent performance of the new United
states Treasury 51k per cent notes.
which are nov quoted at premium
of Il. ALI Of the other Treasury pa
DER had gone to q discount Just as soon
Is it was issued, during the past year,
and while the action of the new loan
has been Influenced by the high rate Of
interest 1t carries II Is also responsive
to the change for the better In money
conditions.
Trading In listed bonds has turned
again to the convertibles, In which O
large proportion Of the daily trans
actions has occurred. OF this group
the Az per cent issues Of the Ameri-
can Telephone 81 Telegraph Co. and
the International Telephone & Tele-
graphy Co. have been conspicuous. the
latter selling several points above the
price reached last Spring and from
which there was an abrupt decline. The
success Of such issues makes 1t all the
more difacult for corporations to finance
with straight mortgages and renders 1t
almost impossible for bankers to sell
Not much change has occurred IN
the high-grade corporation list. Prices
here huctuate within q narrow range,
with the market one Of limited supplies
and difficult to negotiate, either by the
buyer or seller. Institutions are doing
very little. The savings banks have
not recovered from the effect of the
May Withdrawals, which were larger
than ever at this season on account
of the demand from depositors who
were compelled to go to their banks and
get cash to supply additional margin
for declining stocks.
Foreign Issues.
Foreign issues have settled back after
the rise they enjoyed on the conclusion
Of the Paris debt conference. In gen.
eral the old seasoned bonds are holding
steady and as money rates decline and
the benefits of the settlement become
mote widely appreciated it In fair to
ASSUME that they will sell at better
dgurE.
TheNe are, however. o considerable
number of new issues that have not
yet BEEN, thoroughly shaken down.
These shoN poor markets from day to
day. Their quality is none too good
They have done unreasonable harm tt
the general foreign bond market. When
the time comes for q revival in this
market 1t is to be hoped that American
investors will be offered issues OF un-
doubted value, which will be able to
hold their price once 1t has been fixed
ut fair level.