Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-11
BOND SENTIMENT
MUCH IMPROVED
Distinct Advance Noted Dur
ing March in Views on
Senior Securities.
Special Dispatch to The star.

Special Dispatch to The star
! CHICAGO, April l1.-Sentiment In
the bond market showed a distinct i'm
Provemcnt in March, according to the
monthly investment review of Lawrence
Stern g. Co., investment bankers.
The review. based on reports from
leading financial institutions throughout
| the country said that the favorable re-
ception that met the large volume of
high-grade> bond financing which ap-
peared in March gives substantial Jus
tihcation to the general improvement Of
sentiment In bond circles.
With the bogey of Government
financing Largely out Of the way" the
review said, land with a stock market
| that does not seem likely to absorb any
large degree Of public attention for some
time. the high-grade bond market APP
parently has fairly clear field ahead.
The stock market during March
was largely featureless, characterized by
a limited volume Of trading and gen.
eral drift in the downward direction.
Well informed opinion appears to ex-
pect continuation of this general
| downward tendency for some time, per-
haps throughout the second quarter Of
the year"
New Security Offerings in March.
New bond offerings in March total
ing $685., 865 1885," said the Review, set
high mark, both in quality and guam
tity. Stock offerings were in negligible
volume. aggregating but s42,1I8,l67
I'm the bond field the record-break-,
ing total of new municipal offerings
was the outstanding feature. Students
OF monthly security totals have be-
come accustomed to considering $780,
100000 as representing good normal
month in the municipal fleld-and'
total monthly offerings Of less than
$50,000000 have not been infrequent.
Accordingly, the March total Of $275,-
087 1886 represents more than twice the
normal monthly volume and is tbs
largest total offered in any one month
for more than q year. Notable among,
these municipal offerings were ths
500 900 900 City Of New York AIS,
the $66,ooo,000 Port of New York
authority AIS, a $15,00000 offering
by the City of Detroit and the s13,-
100000 City of Los Angeles issue.
Some Leading Offerings.
"'Railroad bond financing also shows
brilliant record IN March, with q
total Of $18S. 943, 900. Notable railroad
offerings include the $4,000: 600 New lew
Pennsylvania Railroad AIS and the
$50. 000. 900 Southern Pacific AIS.
Next to munictpals and rails was
the public utility classification, with
offerings totaling $83.225, 900.
Industrial offerings Of 66,140, 900
also showed a large increase over re-
cent months, the most important single
issue being the 5000 900 youngstown
Sheet and Tube S.
Foreign offerings were small in
volume-falling below February, with
total Of $10,620,0 900. Real estate
bonds appear to have disappeared al
most from the market.
New York City bankers were re-
sponstble for most of the new March
offerings. Chicago. which usually is
In second place, offered a negligible
total-New York being followed by
Philadelphia, Boston and Montreal in
the order named
National Situation.
A summary Of the facts and opinions
brought out in replies to a QUESTIONABLE
from leading financial institutions in
each Of the II Federal Reserve districts
in March follows:
About per cent of the bond dealers
canvassed reported retail business above
normal in March; 35 per cent reported
normal business-the remainder de-
scribing their business as below normal.
Retail stock business is almost unan-
tmously reported below normal, except
among dealers in fixed trust shares.
A large majority of dealers report
that investors seek bonds rather than
stocks-with exceptions again in the
case of fixed trusts.
New Issues in March were fairly well
received for the most part-very well in
some cases.
High-grade bonds continue to lead in
favor, with some mention of a rising
demand for medium grade issues.
Municipals are by far the most
popular classification, having been dis
tributed in record breaking total in
March.
A large majority Of dealers foresee q
good outlook for the bond market With
regard to stocks, opinion as to the out
look ranges from poor to fair.
Demand for bonds on the part of
banks shows some improvement-5O per
cent of the dealers reporting fair to good
bank demand.
Easy money is reported in most in
Stances smaller number reporting =
tight credit conditions than was the
case earlier in the year.
The majority opinion is that the
general business outlook Is fair at this
time, with somewhat more optimism
than was noticeable in February.