Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-19
INVESTMENT BOND
MARKET STRONGER
New Offerings Absorbed Dur
ing Week, With Small
Price ReCeSSionS.
pecial Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January l8.-Under the
strain of absorbing the largest total of
new issues brought out in any one week
since war time. investment market
prices Sagged somewhat this week; but
the declines were comparatively small
and the readiness with which the new
offerings were disposed of proved the
markets favorable temper.
, The S150,000,000 issue of American
Telephone and Telegraph per cents,
of course, was the piece de resistance
and it's overSubscription was the only
hint needed to bring out many other
sizeable issues. The Telephone bends
were subscribed to the extent Of $751;
100000 and although insurance COM
panies were allotted around 80 per cent
of their needs others received only
fractional port. of their application
amounts The books for the loan were
closed almost Immediately after open
ing. The bonds sold as high as 2-point
premium. but dropped to around l-point
premium toward the end of the week.
Additional Issues.
Then followed other large issues, such
as S35.085,000 Chesapeake g. Ohio
4las. 100000 Associated Gas and
Edison SIS. Sl2500, 900 Forty Wall Street
IS and many other lesser offerings. The
Chesapeake & Ohio bonds were sold
to the offering syndicate at 81 "a, or
2l2 points below the public price CT "a,
a commission commensurate with those
received before it became the fashion
to do most financing by means OF stocks.
Attention was diverted from outstand-
ing bends with the new offerings and
prices saggsd, but all OF the new issues
were quickly sold out and the week
end finds the market with practically
clean slate. ready for the 10 or so large
public utility offerings known to be
scheduled for immediate announce
ments.
The weeks total Of over $305, 000,0 900
compares with 1927, $780, 900 in the week
of February 4, 1927, the next largest
total in any week since the war, and
with 1927 ,49e, 900 during a mid Deem
Der week, the largest total in 1929. In
the December week the bulk Of the
offerings were municipal issues, while
this week municipals totaled around
$40 OO0.OO0 the balance being public
utilities and industrials. The fact that
nearly all of the weeks offerings were
long term indicates that the easier
trend of money-time money was again
off fractionally toward the week end.
and then dizziness in stocks have placed
such bonds in favor Foreign credits
were affected by fair volume of buy
ing for overseas account and reached a
new high average for 1880. In fact,
10 high-class foreign government bonds
stand at level above the high price for
1929. Europeans bought Japanese de-
scriptions with the lifting of the gold
embargo by Japan. German issues were
also firm under foreign buying and
French and Belgian bonds were still at
their highest level in over year.
Tardieu Proposal.
The virtual ultimatum of Premier
Tardieu at The Hague conference that
no German financing in New York or
London. apart from reparations bond
issues, be permitted until the repara-
lions bonds are floated, was in line with
what the Street expected and nego-
tiations that mad already been begun
to float large German issues for public
utilities and railroads here have been
postponed for this reason.
! Comparison of current prices Of groups
of foreign bonds with their issue prices
and high levels of 1929 indicates their
credit ranking and makes an interest
ing study. A group of governmental,
municipal and railroad bonds of France
stands today at an average OF l07.43,
compared with high level of 10703 in
| 1929 and an issue average of 902 A
similar group of Belgian bonds is 107.37
compared with a 1929 high of 108.l7,
| and an issue average of 95.2. Japan
csc bonds average $50. compared with
a 1929 high of 957 and an issue aver
age of 81 So Next in rank comes a
group of Scandinavian issues at 100.l2.
! against a 1929 high of 100.97, and issue
average of 9745. A German group is
at 95 SO, against the high level for 1929
! OF SO SO and an issue average of 1895.
! Central and South European descrip-
lions average 90.6 today. compared with
high last year of 94.57, and an issue
| average of 81 IS. Lowest in the scale is
/ group of South American bonds
/ standing around 85.4. against the 1929
| high level of 98.3 and an issue average
Of 96.2.
Present Prices
Thus these groups stand, compared to
their issue prices, as follows:
French, up 1923; Belgian, up 12l7;
! japanese, up 404; Scandinavian, up
2.67; German, up 1.41; Central and
! Southern European. off 1.25, and South
1929 low level, the South American
group was 1T points below the issue
average.
Listed domestic bonds dropped off
to a low average for 1880. but they
still stand at level about 3 points
above the low price of 1929.
Prime bonds, second grade rails and
the speculative section all suffered this
week under the selling occasioned by
the adjustment of portfolios to &C
commodate new issues.
Other movements were traceable ia
special influences. Obligations of Cuban
sugar companies were active and strong
at the end of the week with the Sen
ate's refussl to increase the existing
tariff of l.76 cents per pound on sugar
to 24O. The estimated Cuban cror
for this year of $500, 900 tons compared
with a crop of 6,500,000 tons last year
would ordinarily have been a bullish