Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-02
NEW BOND ISSUES
TO Be READY SOON
Railroad Offerings Head List
of Securities Planned in
Near Future.

NEW YORK, February From the
standpoint of price improvement the
past week has been negative in the in
veStment market.
There has been some marking down
Of municipals, some small declines in
outstanding issues affected by new ones
brought out at attractive levels and
some restleSSness on the part of the in
vesting public due to the small yield of
high-grade bonds. This latter factor Is
evidenced in q point decline in the aver
age price of 10 Of the highest types of
bonds, and declines ranging from u to
points in United States Government
loans.
The week saw the cessation, to large
degree, of the transferring from out
standing bonds to new issues. Most of
the issues left on the shelves of dealers
have been distributed. There is still
evidence that some of the recent offer
tngs have been coming back into the
market. But this practice is dwindling.
However, any general advance in bond
levels must be some distance OF as yet
because Of the large amount of new
financing still in prospect.
New Bond Issues.
New bond issues totaled about $780,
100000, against $79, $4,000 last week.
This compares with the total of $685.
600, 900 in q recent week. One interest
ing point was that the end of January
showed a renewed tendency toward
stock financing. The Republic Iron g.
Steel merger was accomplished without
bond issue. The insult utilities group
is planning $4,000, 900 stock financing.
Many other concerns issued additional
stock by issue Of rights" In the same
week Of 1929 the total of stock financing
was double that of bonds.
There is much bond financing in
prospect, including $32 900 900 by the
Cleveland, Cincinnati, Chicago d st.
Louis Railroad; $26,000,0OO by the
Delaware, Lackawanna q Western:
$4,000, 900, Cleveland Union Terminal,
and numerous equipment issues. The
latter are incidental to activity among
equipment manufacturers, which is at
present on an upward swing. San
Francisco proposes to float $60,00O,-
600 loan for the purpose of purchasing
the properties in San Francisco of the
Pacific Gas & Electric Co. and the
Great Western Power Co.
Increased firmneSS in stocks during
the week had its direct effect on the
bond market in a substantially higher
range of prices for convertible issues
and other bonds having stock warrants
or bonus features. In an indirect way,
1t aided bonds that are dependent on
the earnings Of the companies putting
them out. For instance, 10 of the lowest
grade bonds listed on the stock and
curb exchanges are currently at their
highest levels for the year, and an
average Of 10 points above their low
levels of this same month. This, Of
course, points to speculative operations.
Most Of this group are bonds selling
below so or, in other words, on a re-
ownership basis.
Foreign Dollar Bonds.
In the list Of foreign dollar bonds,
it Is interesting to note that group Of
10 low-grade foreign bonds Is at an
average price more than five points
above the low levels touched early in
the month. This is probably attributa-
bic to buying for foreign account.
One thing that has helped bonds,
and is no doubt the reason why high
grade issues have not declined as they
may well have been expected to do in
the face of so many new offerings Of
fered at discounts, Is the general de-
over. To the man who holds bonds
and has, consequently, a fixed income,
this lowering of commodity prices,
Of rents, and everything else, is equiva-
lent to an increase in salary, while
at the same time it means smaller
dividends to the owner Of equities and
smaller profits to the man who is in
business for himself.
Reductions in the prices of municipal
issues were blamed partly on the Chi
cago situation, which came to a crisis
during the week. However, the SAM
tary District was able to borrow enough
at a high rate of interest to pay the
coupons on its bonds, which are due
shortly.
The market for foreign loans has
gone ahead day by day. French, Bel
gian, japanese and British dollar credits
were outStandingly strong. South Amer
lean issues gained a little, although they
are still long way behind the rest Of
this section in their recovery from last
years low level. Argentine descriptions
were favorably affected by the announce
ment that the gold conversion ONCE
may shortly be reopened by President
Irigoyen, and also by the report that an
attempt is to be made to re-establish
(Copyright, 1930.)