Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-26
new BOND ISSUES
ARE MARKET TEST
Nearly One Billion Dollars
Worth of Financing Done
in Two Months.
special ptspatch to The star.

Special Dispatch to The Star.
NEW YORK. January 25.-Bond
| trading, especially as represented in the
| distribution of new issues, slowed down
appreciably during. the week. A total of
around $150,000. 900 Of new offerings,
added to last weeks record aggregate of
9305, 900 900, proved too much for the
overworked market, and toward the end
of the week even the municipal market,
which has been fiourishing since the
start Of the new year. became duller.
Some prices had to be marked down to
keep municipal issues moving.
The current apathy in investment
circles does not seem to have any bear
| ing on business or market conditions.
Money is as cheap as it has been since
! 1t first started downward IN November.
i Time money Is currently quoted at 412
to. 4St per cent. But during the past
two months the market has received
| for absorption close to 81 200, 000, 900 of
new bond offerings and is somewhat
| satiated.
Stock Financing.
Companies that have new financing
to do have been quick to grasp the mar
ketS condition, and q number of Of
! ferings that were imminent have been
postponed. Other companies have de-
cided on stock financing. Two notable
examples Of the latter during the week
were the Rotations Of stock by the Pa
cific Telephone g. Telegraph and the
New England Telephone q Telegraph
Companies. In the case of the West
ern system, 1t is the FIRST stock financing
done since 1927. or the total Of $780,
O0O, 600 required for the Bell systems
1880 expansion plans, only about $780,
600 600 has been raised so far, half Of
1t In stock Dealers contend that q good
half Of the remainder Is also likely to
| be stock financing.
Also the merger Of the Republic Iron
a. Steel Co. with five other companies
will probably be accomplished with
stock financing and not bonds, as at
first intimated. The amount involved
is said to be around $4,000, 900. The
International Telephone & Telegraph
Co. has expansion plans to provide for.
Intention to issue bonds was denied the
other day, and the Street believes the
directors are merely waiting until the
market swings one way or the other be-
fore making up their minds how to
finance.
The public has not come into the
bond market as 1t was hoped 1t might,
although, indirectly, it Is providing what
buying power there is. Savings banks
having been buying in comparatively
small amounts, but the insurance cor
porations have been the mainstay of the
market. Insurance has shown marked
upward trend in volume of new busi-
ness since the stock crash of October.
These factors have combined to center
the demand on legal bonds, which, have
stood flrm or advanced slightly. while
the rest of the domestic list has sagged
irregularly downward.
New Issues.
New issues included $S5,S45.214 of
municipal financing, of which the big
gest item was $35 ,000, 900 in short term
notes issued by the City Of New York.
These went on 40 basis. Other offer
ings were $4,000, 900 Northwestern
Power Co., S20,000,O00 Public Service
Electric & Gas and $2S.00o,00 New
England Power Association. Approx
| ity issues have been delayed Temporal
lily. There was q 81 soc, 900 insular loan
of the Philippine government. Small
! equipment flotations were put out by
! the New Haven, st. Paul, Chesapeake &
| Ohio and New York Central Railroads
Rail equipments are going on approx
mateIy a SIS to $50 basis.
! One of the explanations of the lack
| Of interest In bonds is that more money
! mortgages. Real estate dealers think
| that this market for money will con-
| tinue to improve, with money rates so
| much below those of last year when
J real estate loans were obtainable only
| at prohibitively high rates. One evil
| dence Of this has been that people have
been increasing their deposits with
/ building loan associations, and, conse-
/ Quently, making mo refunds available
tor this type Of financing. One firm
! announced that 1t had received 5000
new accounts In December.
fractions advanced 2 to points this
week under the impulse Of q growing
movement for higher fares based on
the Baltimore and Los Angeles de-
cisions.
Obligations of Cuban sugar COM
panies were flrm all week. with the ap-
| parent subsistence of attempts to put
the sugar tariff up to q 2.40 cents per
pound level.
Rubber Matket.
The continued weakness of the rub
Der market has affected bonds of tire
and rubber companies for some weeks
and they are at low level today, al
though somewhat above their lowest
prices Of 1929. Six such bonds. repre-
| sentative Of the American rubber in
dustry, average 81 80 today, against q
high of loO.S54 and q low of e5.46 in
1929. But the present level is 6 points
below the issue average.
Toward the end of the week the
spectacular run for cover by the stock
market shorts In Fox Film stock COIN
cided with q furry In Fox notes and
bonds which are traded over the
counter. Fox Film per cents, due
April /, were actively bid at 10 and 9
little higher. During 1929 these notes
were bid as high as 80. their issue price
There are $4,000, 900 outstanding.
Fox Metropolitan PlaynouSes, Inc.
61as were bid In from 50 to IS. In 1926
these bonds touched %, slumping to IS
In December last About $l3, 900, GEO are
outstanding. The current floating debt
of the company is calculated TO be
II arnalrad Ann mn AnA and. askinnafe6