OCR Text |
Show N : New Bond Issue Starts Well By 7ra C. Tichtnor IT WAS a most interesting circumstance, and especially because of the evideuee it offered ahowing the splendid prev'1'xlB financial condition of the country, that the proposed issue of j $500,000,000 4' 4 per cent thirty-year treasury bonds aold above pan In Wall iltMt, while at th nmi tiro all (ha other lOT.rnment obligation alio were selling at or above their fac value. Belief waa expressed In eome quarter that Secretary Mellon- announcement announce-ment of (be . offering of a government bond laau. and th flrat alnca the flotation of the fourth Liberty loan In October, 1SU. would hare a bad effect upon the market for the existing laauea. That this, did not prove to be the case Is Indicated bjr the telegraphic report of the bond dealing- on th day following the announcement. " A might be expected, the (new bend met a food reception, not only because of the existence of a plentlfulnca of money for lnvelment purposes, but a '.so because of the fait that they tarry th usual ta exemption provisions. pro-visions. Th secretary of the treasury remrve tb right to allot additions bond abov the 1500.000.000 amount fixed fdl subscriptions to th extent that per cent Victory notes or treesary certificate of the erle maNaring December 15 next are tendered In payment. Holder of the- Victory note and treasury certificates naturally will be desirous of trdlng their holdings for the new long term issue, even t a los in Interest to the extent of half of 1 per cent. As a r?ulu It U wxpctd that the new bond luttue will take care, to a grent extent, of the 4 per cent Victory note and the treasury certificates falling due in Pec em her. Treasurer Mellon. In a letter to banking- institution, asking for con tinued cooperation for tha distribution of the new bonds amonf Investors, declares Hie time has come for a longer term operation in .the refunding of the' short dated debt, which heretofore haa been accomplished without disturbance to the market for outstanding ecurJtles n a relatively short term baais. ' 1 Title iwwane, of iuuim, th afluiUTuu-Qrirpancy of A paHTaTTiaTen'sTon of government obligations over a period of years and thus passing on to posterity at leaat a portion of the burden of the cost of the World war. |