Salt Lake Telegram | 1928-01-01 | Page 20 | Bond Sales in 1927 Reach Record Total of $8,500,000

Bond Sales in i 1927 Reach Record T Total olaf of i JA u By y WALTER TER MARQUISS Associated YAL Preas Financial Editor NEW YORK Dec 31 AP AP- AP American capital In unprecedented volume poured into new domestic and foreign financing In 1927 1921 While final estimates are not yet et available available avail avail- able It appears certain certin that more than a bli billion n and anda a half more than han the total for tor 1926 was exchanged for bonds of ot national national na na- na- na tonal state and municipal governments govern govern- ments meats and industrial enterprises throughout throughout the world It I does not that the amount amount of American money invested In bonds has i in increased increased in- in creased eight and one half one hal billions since mu much h of ot the total otal was accounted accounted ac ac- ac- ac counted for by extensive refunding operations Although bond offerings reached record figures In October the weekly weekly week week- ly y average was largest in the first first four months The influx of new bonds from Januar May ay was so rapid that that a period period- of a acute ute congestion congestion tion ton developed and at one time it was estimated that in new bonds remained unsold Three months passed during which the flow tow of offerings shrank to a trickle before the surplus was digested The Tile result was a s steady eady lowering of quotations on listed bonds Recovering from its spell of ot indigestion indi the market again he headed ded upward Prices advanced advance with wih a afew afew afew few minor interruptions until the average in the last two months reached the highest level in all al time PRICES RISE IN WAVES RISEN The rise of bond prices was In three distinct waves Active bidding bidding bidding bid bid- ding which started in late 1926 did not subside until the end of Janu Janu- ary A reaction w which followed was wa's was checked in March Marh when government government govern govern- ment meat financing at low rates brought renewed stimulation Until the end of April quotations steadily steadily- rose In Inthe Inthe Inthe the stagnant period of heavy surplus surplus sur sur- ur- ur plus of new Issues issue prices entered a along along along I long slump which continued until long the middle of ot August In neither of the two reactions however did quotations return to the level at which they began the he year Despite the unprecedented advance advance ad ad- Despie vance in prices dem demand nd for listed listed bonds sh showed wed no signs of diminish diminish- ing lag The volume of sales was was close to approximately more than In 1926 though hough I falling failing to come up to 1925 1025 when 3 In bonds changed change hands handson on the stock exchange condition of ot the bond market was indebted almost entirely entire entire- entre- entre market ly to easy money rates prevailing mone throughout the yea year A general slowing up of business left let enormous enormous enormous enor enor- investment invest Invest- sums sums' available for tor m ment nt purposes and led le in August to a r reduction ducton of the rediscount rate of the Fed Federal ral Reserve bank to 3 2 1 from 4 r p per pr cent at which level It I had been held since August 1926 Because of low credit rates th tn able to United States treasury was obtain huge loans treasur as a low as 3 8 31 8 1 to 3 8 3 per cent most most of which were undertaken pr to refund more than thap of the Second Liberty loan Up to the date of call November 15 15 tho the amount of ol cal Second Liberty Libert bonds outstanding had been reduced red ced to The final mopping up subsequently brought brought In for retirement all al but of the issue FOREIGN FINANCING The amount of ot forel foreign n financing In this market exceeded a billion bUlor dollars for the fourth consecutive of year The international feature such loans and the state departments department's departments department's depart depart- ments ment's tentative supervision over foreign financing caused delays here and there notably In large advances to icO the tIle Polish and Prussian Prussian Prussian sian governments bet bat on the tho whole the foreign Issues went ent through trough little friction with comparatively fricton American capital went Into many countries including including Germany Gerany Italy Ialy Poland Austria Australia Irish Free State and Latin tn America While the majority of ot these these- loans governmental t l. l large a a amounts amunt were 1 i tendered for foreign Industrial r railway and banking securities One of ot the most interesting of the foreign financing programs was Was- the tile unique plan to retire some 0 outstanding 8 per pr cent bonds of the French Fench government government France agreed in exchange for a cooperative copper cooper aUve arrangement arrangement with wih the French State Stat Match atch Monopoly to sell sel 75 new 53 to the Swedish Match atch Monopoly of which will i be passed on to its Is International International American subsidiary the Match corporation The deal wilt will wJ not be completed until some sometime time in In 1928 o Of Domestic financing g. g the largest largest single transaction was the Issue of the Missouri Pacific marketed In February Youngstown Sheet and Tube company borrowed while issues of 0 o Were ere floated on oa behalf behal of the he Erie Chesapeake corporation corpora corpora- tion ton Rock Island Burlington Goodyear Goodyear Goodyear Good Good- year Tire and Rubber company Shell Union Oil Oi company Public Service Gas and Electric company and Alabama fower ower company A A