Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-20
ADVANCE IN BOND
MARKET |SSTEADy
Demand for Good Investment
Securities Shows Nota-
BILE Increase.
Special Dispatch to The Star.


NEW YORK, october 1.-two weeks
Of steady progress have now placed
the bond market In a position where
it can absorb-without the difficulty SO
common in recent MONTHS sizeahle
issue and even yield slight premium.
This is in sharp contrast with the
condition existing just before the recent
easing in money rates, when compa-
mics seeking new financing were COM
PEELED to offer stock warrants or con-
vertible privileges or some other morsel
sailed with the magic word equities
in order to have their offerings &C
cepted.
= vance Is Slow.
Probably the most impressive thing
about the. bond markets performance
Is the slowneSs of the advance. No
spectacular climbing has been in evil
dence, but good sound investment is
sues have shown q day-by-day rise OF
q fraction. The market has now
reached the point where the average OF
80 such issues is higher than at any
time since last January.
While the call money market, too,
has been easier, it is the drop in time
money, slight as it has been SO far,
that has helped most to turn attention
to the investment mart. The evidence
of this is contained in part in the fact
that the bond market went ahead Fri
day in spite of the increase Of $80 ,000,-
900 in brokers loans.
The whole story has not been con-
tanned on the ticker tape. The COM
pleted transactions do not take into ac-
count the astute buyers who are ready
to bid in large blocks. but will not bid
the price too high to get them. 1t
has been much easier to sell bonds
than buy them The offerings are
small. Most of the transactions are for
the accounts of insurance companies
banks and dealers. They anticipate
big bond market.
while the past week has not been
productive Of high total of new is
sues, there was one highlight that
proved the markets temper. This was
the offer of $32 100000 of 5 per cents
by the Southern Bell Telephone Co.
For the first time since 1925, the COM
pany offered the bonds without any
convertible dressings. The price was par
and the when-isSued description sold on
the market at a particular premium.
Particularly among the railroad obliga-
tions was the past week noteworthy. The
demand for good railroad investments
has been stronger than for many weeks
and nearly all the first-class roads
showed q gain Of point or more. This
was as true of the mortgages OF the
Junior carriers.
Bonds of the Seaboard Air Line and
the Seaboard All-Florida Lines all MT
new highs for the year. Chicago Union
Station per cents Of the 1914 maturity
also went to o new high for the year.
These are only few of those that could
be mentioned. But they serve to show
the class of investment that Is coming
again into favor, in the belief OF the
traders.
High Yields.
High yields on good security abound
in the foreign list, where French rs
and 7las. German reparation rs, AND
German Central Agricultural Bank 6S
all made new high during the week.
OF course, pessimistic bond traders
who have seen their market stagnaee
so badly and cannot believe that it Is
staging a revival point out that all dur
inc the course of the bull stock market
these high yields could be found in pro-
fusion in the investment market, but
nobdy would take advantage Of them
As a sidelight on the market for NUM-
cipal bonds, the city council OF San
Francisco has about decided to hold a
referendum TO seek permission to raise
It's unsold AVS to a higher rate. Dur.
ing the week, New York City announced
its intention to offer 100000, 900 OF 4las
and the State of Illinois marketed a
small amount of per cents.
During this same period, so the street
has it, some $100,000,000 to $150,000,-
600 of stock financing was delayed or
withdrawn. The very paucity OF new
issues in the many months of lean
pickings for the bond men has proved
the force that is swinging the pendulum
their way again.