The Indianapolis times., 1936-05-06
BIG INVESTORS
SEE SHORTAGE
OF U. S. ISSUES
Smaller Treasury Program
for Balance of Year
BolSterS Market.
EY CHARLES H. HUFF
Times Special Writer

NEW YORK, May 6.-Aside from
new money requirements, the Unit
ed States Treasury is confronted,
for the remaining eight months of
the year, with only little more than
half the financing task it faced
during the corresponding part of
last year.
Maturities to be refunded before
the end of 1896 total only about
$3,725 100000. OF that amount ap-
proximately $1,000, ,0oO, 900 represents
bills that come due at the rate of
about $4,000 900 each week and oc-
caSion a minimum of interest in
banking circles. This leaves less
than $4,000, 100000 of maturities to
call for bond or note offerings dur
ing the eight months ahead.
Institutional investors and indi-
viduals in the high income brackets
are beginning to place a farsighted
Interpretation upon what this situ-
alton signifies. It is a reaction that
is not entirely without fiavoring
Of irony, representing wide depar-
ture from the tendency less than a
year ago to heap broadsides of
criticism upon the Treasury for the
size and frequency of its financing
operations.
Expects Inadequate Supply
Whereas institutions last year
were prone to stand aloof from
Treasury offerings because they
were expected to come along in un-
diminishing flood dimensions, there
is feeling now that the supply of
the near future is likely to be en-
tirely inadequate.
This altered attitude toward Fed
eral obligations is held forward in
market circles as an explanation oi
the persistence with which high
price levels have been maintained
in spite of influences which ordi-
narily would be expected to produce
considerable disturbance.
In three successive months most
issues in the Federal list forged
through earlier peaks and estab
lished new highs. The entire lis
accomplished that feat about the
middle of last month, every issue
setting the highest price of it's en-
tire record. The market was com.
PEELED to stand a test after each
new peak, and while professional
trading of inconsequential proper.
tions brought on a narrow setback
in each instance, the forward move.
ment was soon resumed. The ex.
planation is that investors stood or
the sidelines during declines, hav.
ing no inclination to liquidate, sc
that it needed only their resump.
tion of buying to send prices to new
heights.
Portfolio of the Future
Institutional investors. viewin:
the present position of the invest.
ment market with mingled dissatis.
tactic nand apprehension, because
OF the lowest yields of a generation
in all categories of high grade Sc.
curities, are giving major thought tt
the future of their portfolios, a large
part of which it is customary tx
maintain undisturbed.
A year ago many investment man.
ayers considered themselves top.
heavy in governments. Today many
OF them see no safe way to escape
even larger holdings of Federal is.
sues. With funds continuing to ac.
cumu1ate, and with coupon rate.
on corporate issues shrinking steadi.
ly, the move is toward Federals as
offering a minimum of worry, once
a reverse trend in rates is estab.
lished.
Il is computed that since the be-
ginning of this year close to 81 .OOO..
100000 of corporate bonds, not vel
due, have been refunded at rates
l to Ia per cent lower than the
old coupons. These operations have
dipped especially deep into institu-
tional portfolios of the so-calleo
fixed variety.