Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-25
INVESTMENT BOND
SITUATION IS QUIET
FIotation of New Securities
During Week Has Greatly
Increased Supply.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, May 24.-This has been
another week of large issues of new
securities, and of limited changes in
the prices of bonds. Supply has ex-
ceeded demand, so thae the situation
with respect to undigested bonds is not
improving. On the other hand, there
has been a slightly better tone to high
grade issues and continuation OF the
institutional and corporation inquiry
for all classes Of short-term issues OF
good quality.
Some Of the outstanding loans of the
week have been the $4,000, 900 B. F.
Goodrich Co. per cent convertible
debentures; $30,000,000 Province of
Ontario 41as; s17,5o0,o00 American
Smelling e. Refining per cent second
preferred stock; $10,000,000 Southern
New England Telephone 5 per cent de-
bentures; Sill 100000 Southern Natural
Gas Corporation per cent convertibles
and 150,000,000 of National Power 81
Light per cent preferred stock.
Among the smaller offerings have
been 100000 of the Glidden Co. s.
year 51a per cent notes, $4,050,000 Of
cent equipment trust certificates and
$4,000, 900 General Bronze 10 per cent
convertibles. 1t is rather significant
that so large proportion of the weeks
new offerings were of a non convertible
type This is in line with the high
proportion of strictly fixed interest
obligations during the year.
Money Rates.
Easier money rates, as represented in
the open market for call loans, in time
loans and in bankers bills, have had
no appreciate effect on bond prices.
The only improvement in the situation,
so far as long-term bonds are con-
cerned, has been in the trend to little
wider spread in maturities as the very
short notes have been absorbed. COM
polling buyers to accept one-year notes
where they had been taking six-month
notes and two-year notes in the place
of one-year notes. It is expected that
demand into longer maturities.
The chief interest at the moment
centers in the new German reparations
loan, whose terms are expected to be
definitely known next week. There mas
been more discussion and controversy
over this issue than any other, domestic
or foreign, in months. Not only has
there been a striking difference of
opinion as to the price and yield be-
tween American and foreign bankers
but also among those in this country
who will be called upon to distribute
the American portion of the loan. It
seems to be accepted that the coupon
rate will be 51a per cent, or the same
as on the $50,000,0o0 japanese gov
eminent bonds offered two weeks ago
at 80 and selling this week at nearly a
2-point premium.
Loan Likely to go Over"
Those who feel that the German loan
should be offered on at least a per
cent basis, base their conclusions on the
return available not Only on the Ger
man government Is, but on the large
number of other German issues in which
the German government has m interest
and whose yield runs we'll above per
cent
There is no doubt that tie loan will
go over" so far as the syndicate is
concerned. They would not permit il
to show the slightest evidence of failing
Just how far 1t will find its way into
the hands of the ultimate consumers
and be taken in small average lots Is
not so certain and will depend entirely
on whether IL gives good yield or one
of only moderate size.