Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-02
INVESTMENT BOND
PURCHASING QUIET
Market Continues Slow Dur
ing Week, With Values
Holding Firm.
Special Dispatch to The star.


NEW YORK, March 1.-The invest
ment market continued its slow but firm
pace during the past week-a disap-
pointment to those looking for an ex-
tremely active market.
Although the average of 40 bonds to-
day is about six points below the levels
of 1927-1928, since the opening of the
current year 1t has made a steady ad-
vance until today it Is nearly a point
above the average of January /. On
Friday this slow pace was accelerated
somewhat, with lower rate for time
money and favorable Federal Reserve
Bank statement.
The diminishing stream of new Offer
ings has had much to do with bringing
a little more activity into the market.
ms has been evidenced more by way
OF increasing volume than by price
improvement. The markets progress
has been made despite decrease in the
amount Of buying by life insurance COM
panles. These companies have had an
unprecedented demand for loans to poll
icy holders recently, at a time when new
business written has dropped of consid-
erably from the high level established
just after the turn of the year.
Estimate Of Loans.
life insurance policy holders loans at
$25, 000, 900 weekly, compared with a
normal average of about 81, 900, 900. This
money Is diverted from the investment
market. Savings banks, of course, are
still buying bonds, but banks in general
are not in the market for bonds in any,
thing like the degree that prevailed in
1927 and 1928. The volume of loans by
Federal Reserve member banks is still
at a figure considered to be too high,
even though 1t has dropped a long way
from the total which was viewed with
so much alarm last year.
Bond sales have been running about
$4,000, 900 to $l0,000,000 a day on the
Stock Exchange or about equal to the
volume last year and about 81. 900 600 a
day less than that of two years ago.
Foreign dollar credits have been
strong during the latter half of the week.
chiefly because Of q somewhat clearer
political outlook In France and Ger
many. The improvement, however, has
been more or less confined to the bet
ter grade Issues. This buying Is attrib-
uted to American institutions in line
with the Federal Reserve policy of pur-
chasing British government securities.
evidenced on the London market this
week.
Much foreign money has been coming
into the New York market, but Accord
ing to dealers this has been going al
most exclusively into American securi-
ties, bonds and stocks.
Canadian funds also have been COM
ing into this market looking for invest
ment, while their own issues of late al
most entirely have been cared for in
their own markets For instance, S.
100000 Province of Nova Scotia IS were
this week bought by Canadian syndi-
cate and marketed in Canada.
New FIOtati0ns.
New Rotations during the week to-
tailed about $50 900 900, against $75,-
600, 900 last week and $50, 465, 900 the
week before. A great many recent Offer
ings are still largely undistributed, the
evidence that this is so being the fact
that many of them are still begged" al
their Offering prices on the exchange
However, the prime grade Of new offer
ingS have been moved out rapidly and
municipals, although there have been
some cases Of marking down, are NOV
ing in satisfactory manner.
(CopyriRht, 1907