Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-09
LARGE PAYMENTS !
OF INTEREST DUE
Present Month One of Most,
9
important of Year In
Bond Market.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, September 9.-In the
investment market September is one OF
the heaviest months of the year In re-
gard to interest payments bond redemp-
tons and calls. This year interest paid
in September on American corporation
bonds, United States Government bonds
and foreign dollar bonds will amount to
1922 1921 ,946 according to a compilation
| made by Standard Statistics. This figure
| alone is substantial increase over the
Sl43, 229, 806 paid in August, but the
| total of redemptions. maturities and
calls In the month Of September IS
STA .583,540 compared with only $780,
346,613 in August.
Heavy Government maturiies due this
month have largely been taken care OF
by the 81. 100, 100000 in long-term bonds
and certificates of indebtedness sold last
week by the Treasury. but the success
OF those recent issues. the often repeat
ed opinion OF aStute market observers
that money rates are at their bottom,
| and the substantial interest saving to
be effected by conversion may lead Sec
rotary Mellon to do some Of the long
term financing incidental to the call Of
the Liberty loans either this month or
| next
Callable Dates Near.
The Liberty 3l2s and first convertible
414s are both callable next year, and
the Liberty fourth 4l4s in 1893. There
are about $6,280 100000 of the last
named loan outstanding, and If they
could be refunded, even in part, on a
3 to 3l4 per cent basis, the sum saved
over the flve-year period to their ma
turity date would be enormous
Prospects for municipal financing are
also good. The paucity of issues during
July and August has been accounted for
by the usual Summer dullness and the
habit of many municipal governments of
recesSing in those months. This Sum-
mer, dWing a usually dull period, the
talk of increased Federal and State tax
alton caused an acute demand for tax
exempt securities such as good State
and city obligations. But voters only
approved a total of $4,044 700 In bond
issues during the entire month OF
August.
However. with prime municipals GO
ing well at $40 to $50 per cent yields,
the volume Of new municipal offerings
IN the next month or so promises to be
larger than ever AS matter Of fact,
1881 has been the most active year
since 1924 in point of municipal financ-
ing SO far. In the eight months ended
August 81 a total Of 81 ,016 $40, GAS in
municipal financing was put out, COM
pared to 1858, 226, 659 in the same period
Of 1880 and S1,064 ,208,220 in 1924.
Decline in August.
The immediate future holds little
promise for corporate capital and re-
funding requirements, of which there
is now tremendous backlog because
OF the long-continued depression in the
new capital market Corporate issues
in August dropped to less than 500
OOO,OOo and these were without excep-
| ton OF high-grade character. But the
large amount of money that will seek
reinvestment in September and Octo-
ber-well over $1,000, 900, 0O0-should
provide some encouragement for bond
emissions by companies that can offer
investors attractive yields combined v..t:l
good security.
(Copyright, 1917