The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-11-29
MARKET AWAITS
TREASURY MOVE
IN TREPIDAT|ON
Cengthening of Operation
Period Held Forecast of
Rocks Ahead.
By CHARLES I'll. HUFF
Times Special Writer

NEW YORK. Nov. 2e.-Bv am
nouncing considerable time in adj
vance the exact date on which
financing plans are TO be made
known, the Treasury succeeded in
casting something of a pail over the
government bond market. 1t wasn't
much help to government bond fol-
lowers to learn the date without
getting at least a tangible inkling
OF the nature of the plans to be
announced.
The Treasury set its announce
ment date for Dec. >. This per-
mltS nerve straining period of
conjecture and guessing which has
assumed some of the characteristics
of the breathleSs moments that pre-
cede the zero hour.
The government bond market be-
gan some time ago 10 mark time
while looking blankly toward the
December financing program Con-
servatively. the Treasury is expected
to be in the market for a billion
dollars. Half that much at least
will represent increased debt-new
money for works requirements. The
other item involves retirement of
maturing notes.
eS'Stance Is Anticipated
1t is considered unusual. and
somewhat indefinitely significant,
that the Treasury is 10 allow 13 days
to complete its Dec. Is financing.
That is more time than is ordinar-
lily allowed Some dealers see IN
! this an indication that the Treas
ury anticipates a measure of diff
Guilty and resistance.
/ But concrete opinions on the
! propositions are withheld. in the abb
sence of information pertaining to
coupon rates, maturities and the
character of securities to be offered.
! GueSSeS are available. but they are
not born of conviction sufficient 10
inspire market procedure in adj
vance OF Treasury announcement.
The fact that Treasury officials
and Federal Reserve executives
have engaged in preliminary dis
cussions apropos the approaching
| December financing has strength
ened the expectancy of early gov
eminent support in the market.
Four-Year Notes Expected
On the theory that the Treasury
in its general refunding activity is
seeking to even out the future slate
Of maturities. it is believed likely in
some quarters that the S413O00. 900
Of 2l2 per cent notes falling due
Dec. Is. now quoted at a premium
above ro-yield basis will be re-
funded with four-yesr Is per cent
notes.
There are now outstanding an
proXimately 1926 100000 of la per
cent notes TO mature Dec. Is. 1899
Note maturities falling due six
months carrier and three months
beyond that date both are outstand-
ing in amounts exceeding $780,
600 900.
The 1sss of December 1899, COM
mand premium in the market.
priced to yield about Ia per cent.
and dealers believe an additional
issue would be quickly absorbed by
investors.
Lull to Aid Digestion
A marked slowing up in the pace
of refinancing by public utility cor
porations this week is not entirely
unwelcome TO retailers, after the
heavy barrage of last week.
Under writing groups since the
middle of this month have given the
investment market a considerable
call upon their digestive capacity.
Public utilities pretty largely DOM
mated the situation. Something Of
a fixed diet is in store for the in
weston this week and the fare will
be of considerably lighter propor-
/ tons.
In refunding opera tons of recent
days California has figured with
conspicuous prominence. 1t was
something of coincidence that
both the public and the private
units that supply electricity for tn.
Los Angeles area should have chosen
the same week to put their funded
debt on per cent basis and for
a long term. Even before thi,
month the coast corpora tions hav.
been most prolific in operations
| CT tut