Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-19
NEW BOND ISSUES
|. HEAVY THIS MONTH
Offerings Pick Up Consider
ably After Slow February
Financing.
BY CHARLES f. sPEARE.
special Dispatch 10 rhe star.

| Special Dispatch to The star
NEW YORK, March 10 Already
this month the new issues of securities
have been twice as large as for the
month of February. At the rate they
! have been coming out. it is not improb-
able that they will realize a total ap-
preaching that for the first two months
Of 1881 combined, or $s7O 600. 600. This
was the smallest amount for a similar
! period in five years
Detailed figures for last month. which
are now available, indicate that Febrll-
| airy was lean period for underwriting
ana distributing houses, inasmuch as
the total offerings of domestic and for
eign stocks and bonds fell to a little over
S22l 600, COO compared with more than
S625 ,000,0 600 in February. 1890. and
81 ,058, 100000 in February, 1929. The
aggregate for the two months this year
is of 40 per cent from that of a wear
ago and Is nearly IS per cent smaller
than in 1929. Compared with 1928 and
1927 it is only half the amount of those
periods, when low interest rates were in
huenclng pany corporations to obtain
capltal either for refunding purposes or
Tor expansion programs.
Refunding Greater.
AHC SbdCASticS OF new offerings this
year indicate a greater amount of re-
funding than in the same periods of
1881 and 1929 Over 40 per cent of tn
domestic corporation long-term bonds
ana notes were floated for the purpose
OF taxing up other issues that were
maturing or in which there was an adj
vantage IN issuing new loans at a lower
rate OF interest. This policy was ac-
lively carried on both by the railroads
ana the public utilities, the latter re-
funding approximately Sl35 600 900 of
securities Of a total issue Of over $685.
| 100000. The railroads refunded about
$5T.OO0,000 of total Of S187 900 900.
The main reason for the great falling
on In the aggregate amount of new Sc
| curities this year is in the absence of Of
ferings OF common and preferred stocks,
as well as of bonds convertible into
either Junior or senior shares. The
total OF the two classes Of stocks issued
| to the end of February was S72.O 600 O00
against S?76, 100000 in the same period
of 1880 and 81 .295, 000, 900 in 1929. Not
| in many years has there been so little
in the way of new stock offerings as in
, January and February and March has
not changed the financial picture q
great deal in this respect.
There are intimaticns now, however,
that an attempt will be made TO do
lflIOuBH LIE uleQlun
OF equities Certain issues Of bonds
that have been pending for a long
time may be abandoned in favor of
offerings of stocks If the market for
| the latter can be kept active and
strong. This, of course, refers to the
| public utilities, as there are practically
! no important industrials that would
attempt to float an issue of stocks at
| present, although there have recently
| been some offerings of industrial con-
vertible bonds. The railroads, like
wise. are not in a position to sell
stocks, with dividends being reduced
and earnings not likely to show any
improvement in the first half Of this
year.
No Foreign Government Loans.
With the public utilities it is only
the strongest members Of The group
that would have the courage under
present conditions to finance with
stocks. This probably would be done
in an offer to shareholders which
would be at a figure permitting valua-
BILE rights" and, therefore, probable
oversubscription to the issue.
1t is significant of the conditions In
the market 9or foreign credits that no
foreign government loans have been
made this years a situation unlike that
! in any similar period in nearly 10
years 1t is doubtful if the first quar-
ter of 1881 will show any loans of this
character. On the ether hand, move
ment toward more activity in foreign
financing is expected to develop be-
| fore the end of the second quarter.
DOWNRIGHT 1891