Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-14
INVESTMENT BOND
INDEX AGAIN RISES
Market Advances to New
Peak, Despite Fresh Offer
ings of Securities.
Special Dispatch to The star.

6peClhi DlSphtCH 70 Inc 6thfs
NEW YORK, September 13.-Despite
the fact that the investment market
during the past week had to absorb
twice the amount of new bonds that it
did in the previous week, the market
managed to advance to another new
high notch and activity in listed issues
was maintained at high level through
the six market sessions. Money rates
showed no quotable change during the
week, the only fluctuations being the
daily change in the amount of unlend-
able funds at the markets disposal.
Secretary Melons offering Of $685.
100000 one-year Treasury bills at
new low record of 2ss per cent was four
times oversubscribed, providing some
evidence of the amounts of money seek
ing high-grade investment. The broad
ening of this investment demand to
other parts of the list besides the gilt
edged or legal group made some prog
reSS during the week, but 1t was slow
work, with the innumerable special
factors affecting practically every bond
except those whose security Is unques-
toned and whose price is affected
merely by money rates and market
conditions.
Gain In Index.
At the beginning of the week Stand
ard Statistics index Of 80 issues, which
is based on the 1925 average adjusted to
a 100 basis, stood at 101.5, and at the
end of the week it had advanced to
1915. This gain was made despite the
fact that the weeks budget of new bond
offerings was $l34, 1864 900, against $751;
159, 900 in the previous week and $751;
$4,000 in the same 1929 week. Much
of the new offerings consisted of good
de lie he natfN Ia
Francisco issues of $4,000, 900 AZ per
cents, due in 1878 and priced at 02A
to yield about 400 per cent, and the
Chicago 81 Northwestern $l2, 000, 900
Az per cents, due in 2037 and priced
to yield close to $50 per cent. Other
issues were similar in type and price to
the $l5,000000 Electric Power 81 Light
debenture issues of S per cents, Of
fered at price to yield $40 per cent.
All these commanded a ready re-
Spouse, especially the public utility
wider than that of the rails. But large
blocks of these bonds were Immediately
taken of the market by insurance
companies which have had difnculty IN
recent weeks in filing their portfolio
needs without reSorting to open market
buying. The result was that savings
banks and trust funds, which are con-
fined to investment in legal securities,
were still forcing these descriptions to
new high levels.
Selling Pressure.
This virtually left the rest of the list
to the professional Spectator ana the
individual investor. The last named,
market wise, Is still small in stature
Most of his money Is In the savings
banks. The spectators spent the week
trying, with varying degrees OF success,
to force breaks in various secondary
and tertiary securities.
South Americans, for instance, were
sold as political developments came to
crisis in the Argentine and other
South American issues were sympa-
thetically affected Brazilian credits
were liquidated on news that revolt
was imminent there. Peruvian ana
Urugllayan credits became depressed
when rlimors arrived that relations be-
tween the two were strained. The con-
tinued price declines in commodities on
which the bulk of the South American
trade depends proved a factor anectlng
all these bonds as well.
But since the Spectator was unable,
to any great extent, to interest the
public in selling South Americans, ne
had to cover his short sales by buying
back from fellow professionals, and the
result was that South American bonds
had strong tone at the end OF the
week. 80,
Similarly, with railroad earnings still
showing a pronounced falling on, the
Spectator attacked the junior securi-
ties of the roads, especially those OF
the weaker carriers. That they did not
| fall to new low levels was solely De-
| cause once again the public failed to
| follow the selling.
(Copyright. 1901