Evening star., 1941-01-02
January Financing
To Be More Than
Double Year Ago
194l Treasury Issues
Expected to Set New
Peucetime Record
BY JOHN l.. BECKLEY,
Associated Press StatIStician

Associated Press ststistician.
NEW YORK, Jan. 2.-Public Of
fering of new securities in January
will more than double the amount
sold in the first month of 1910
and provide a suitable backdrop for
one Of the busiest years the new
money market has had in a decade.
With cash outlay for defense pur-
chases rapidly mounting, the Fed
eral Treasury is expected to tap
the money market for the largest
amount OF new funds of any peace
time year. In addition, expansion
Of production facilities to handle
armament contracts is expected to
draw heavily on cash resources
of private corporations. However,
whether the new money required
will be raised directly by offerings
Of their own securities or indirectly
through the Government is still un-
certain.
If the funds are raised directly
Underwriters expect to benefit by
sharp boost in the volume of new
public offerings. Volume has been
picking up recently, but most issues
nave been for refunding purposes
! Total offerings for 1910 were much
better than 1899, but still not large
enough to put much fat on the
bones OF investment bankers, dis
I trlbutorS and statesmen.
Sharp Gain Reported.
For the full year, the volume
OF business of the underwriters was
almost so per cent greater than in
1889. Public offerings of new Sc
curities. reported today by Poor's
Publishing Co, totaled s3.565l5l,- =
159. compared with s2,428 .8O5 OO6 a
/ year ago
Biggest blessing of the under
writer's was the heavy inflow of
gold which continued to pile up
funds IN the Nations banks. The
plethora Of idle money kept high
grade bond prices on the uptrend
and drove interest rates to new rec
ord lows.
The attractive rates at which new
securities could be sold persuaded
many companies to call issues which
had been outstanding only a few
years and refund them at a lower
interest cost. Active demand for
high-grade investments made dis
tribution of the new securities
relatively simple matter for under
writer's.
The demand for new money by
domestic corporations picked up
Slightly over 1899, but remained at
very low level despite prepara-
tiOnS for. national defense.
Biggest thorn in the side of the
investment banking profession con-
tinued to be direct sale of new is
sues to insurance companies and
other large institutions. The amount
of business which slipped through
the fingers Of underwriters in this
fashion accounted for roughly 80
per cent of total new securities
sold, approximately the same pro-
portion as the previous year. Pri-
vate placements OF the huge s14O.-
00e,000 American Telephone e. Tele-
graph issue was particularly Bit
ter disappointment.
Utilities Refund.
Public utilities sold more new
securities in 1910 than in 1899, but
only 02 of ! per cent represented
new money. The rest refunded old
issues Utility issues totaled $685.
100000. compared with S725, ,795 900
the previous year. the Poor complia-
ton showed
Railroad offerings increased TO
1881 OIL 000-37 per cent new capital
against $50 000-61 per cent
new capitalize year before.
Industrial issues totaled $685.
$4,000, compared with s355 .462 900
last year However. only about
S35.000000 was new money. the re-
mainder representing refunding of
existing obligations. In 1899. new
industrial capital amounted to.
roughly. s45.000OOO.
Miscellaneous issues expanded
sharply to s202 ,87O .3OO-5O per cent
new funds-compared with s26,-
904, ,000-37 per cent new money
year ago.
Stock issues, mostly preferred
shares, totaled S346, ,lO2 .O08-3l per
cent new capital-against s201 506.-
$3.50 per cent new money-last
year.
Municipal offerings in 1910
amounted to s1,062 608,771. only
Slightly changed from the 1899
volume