Evening star., 1936-08-23
State and City Issues Now
at Strongest Point in
Three Years.
NEXT WEEKS OFFERINGS
SEEN AS TEST OF BUYERS
Definite Change in Few Weeks
Anticipated, With Volume
of Liens Increasing.
BY BYRON SELLER.

NEW YORK, August 22.-Seasonal
inactivity in the new issue market was
relieved this week by the marketing,
or the preparation for marketing of
5000, 900 900 or more in bonds. OF
that total, between $75,000.000 and
$10O,O0O000 were State and city bonds
offered to investment houses. Some
of the municipals were passed on to
the public.
The municipal loans offered to
bankers during the week made total
larger than the offerings of any week
this year. Including all new financ-
ing, this was the most active period
since the last week in June.
The municipal bond market is now
at its strongest point in more than
three years. 1t is selling on a ATS
per cent yield basis, in the middle of
1888 it was on a 5.35 per cent basis
1t has been said that the strength
was due to scarcity of new offer
ingS. The current weeks offerings
will give the market its first real
test in months. 1t remains to be seen
how well the offerings are absorbed.
Definite Change Expected.
Underwriters are looking for a
definite change in the bond issue
market in the next few weeks with
new offerings coming along in greater
volume. So far the larger totals of
new issues have been refunding
operations so that the important in
stitutional buyers: whose funds for
investment have been growing rapidly,
have found few opportunities. A
large part of the new issues will un-
doubtedly come from the industrial
companies. Public utility and rail-
road companies still are mainly con-
cerned with refunding. There may
be some sizeable blocks of railroad
equipment issues.
Tax-exempt offerings during the
week represented operations by two
States and 80 municipalities. The
list was to have been led by the sale
of $45, 900 900 State Of Pennsylvania
notes, but officials of the Common
wealth postponed the sale until Sep
tember /, at the request of the bid
ders. A New York banking group
was the successful bidder for $6,000,-
900 State of Massachusetts, notes
dated August 81. 1886. and due Au-
gust 3, 1887. The bid was 0.305 per
cent.
rt,;oo1o oro,,, uoe tho biohect
bidder for a new issue of $4,000, 900
general. bonds of the State of Mis-
souri,. The group offered 102.579 for
21ks dated September /, 1896, ma
turing June Is, 1855 to 1857. The
bonds were reoffered at prices to yield
from 225 to 230 per cent.
The city of Cleveland sold $2,138,-
900 unlimited tax bonds as "a. and
$646, 500 limited tax bonds as 2l2s, at
1COO3, to a New York syndicate.
Other Municipal Bonds.
Charleston, S. c., sold $1,000, 1000
3 per cent waterworks extension
bonds to New York bankers.
Officials of Los Angeles County,
Calf, flood-control district asked for
bids for a new issue of $4.594, 900 Of
S per cent bonds. but spurned all Of
fers for the unique reason that bids
were too high.
The State of North Carolina is
talking about the issuance Of SIS,
600 new highway bonds. Consumma-
ton of the plan for refunding the
obligations of the city of Mobile, Ala,
is expected soon. There has been
some talk between officials of the
city of Detroit and bankers concern
ing a refunding issue that might
reach $3O,0O0,000.
Municipal bond men who keep IN
close touch with the financial affairs
of New York State and New York City
believe there will be some new f1nanc-
ing in that quarter soon. New York
City will have about $30,000,000 of
bonds to offer and the State
will have at least $4,000, 900 of relief
bonds to sell and about $40 100000 of
general improvement bonds.
The largest Offering of the week.
made Thursday, was the $100, 1000, 900
Motors Acceptance Corp. IS
and 3As. They were offered at 1912.
There was also q public offering Of
Allied Stores Corp. $4,500, 900 Az per
cent debentures due in 1851 at 100.
Approval by the United States District
court of the District of Columbia OF
the terms of sale of Swift & Co. in
terests in stockyards companies to the
United Stockyards Corp. will mean
the public offering of the securities of
the recently organized Stockyards
Holding Co. There was an offering
Of 125, 900 shares Of Az per cent con-
vertible preferred stock OF the Fed
Grated Department Stores, Inc, at
$104 q share.
Utility Offerings.
In the public utility field there are
several large issues in the making.
A $28, ,000, 900 bond issue, Of which all
but about $1,000, 1000 will be used to
absorb former offerings, has been pro-
posed to the Securities and Exchange
by the Louisville Gas q
Electric Co. The Cincinnati Gas q
Electric Co. has filed statement with
the S. E. c. to the effect that New
York banking group will underwrite
SIC, ,0OO, 900 of its first mortgage 81
per cent bonds. The Ohio Public
Utilities Commission has authorized
The Toledo Edison Co. to issue and sell
1T par $4,000, 900 six-year 4 per cent
bonds. The s. z. C. authorized the
(see MUNICIPAL BONDS, Page 81