Show Large e Volume of New Bond Offerings Fails to Break High War Post Levels vels Institutional Buying High Price Prices Combined Combine With ith Good Individual Demand Calling Caling of Second Liberties F Foretells Low Interest Rates The outstanding of the bond durIng th quarter have been a of the maket past sion of new securities and unprecedented peacetime emission ernis- ernis a sustained demand from and Institutional In- In investors Individual only the latter later factor mal making Ing nance ance of prices at possible the maIntenance approximately the high war post levels In the face the of large volume I ruction of new W offerIngs Recently there has a slight due to developed of the to be only market but this appears temporary and likely to o be cured by a better balancing supply and nd demand which latter still continues In tf I later n large no lU U L I. I I l' l O. O Inc in Its is Quarterly Bond Review Review lO sums up the situation in the bond boad arket during the past three months The review sees in the falling ailing of the Second Liberty Jeans lans another evidence that Interest rates rate will remain low 1 saying Th g OV JL-OV- recent action in r ng g all al Second Liberty s and c c on l converted 4 with wih a new long ions cnn issue bearing only 3 tf-i tf 3 lOlS II pr lr cent tent give added confirmation Ii 10 he tle general belief belet that interest rates S ale aie to remain low over a Arable period Fin n referring to industrial is uc the review points out how th the 11 now new W stability in industry has added to he the merits meris of industrial issues sayIng say say- Ing ng Industrial operation in the United States has taken on new as aspeCts aspects as- as in recent years There has e een n a. a growing t tendency toward irge argo scale units thus providing reater financial resources more able ble administration more efficient methods and increasing attention to o 0 scientific research Production lon has as Increased and costs decreased Demand has become more stabilized higher purchasing power on the part pan of ot the masses more lib fib lb- lb ral eral extension of credit more scientific advertising and the creation creaton of f new markets at home and broad Financial stability has been Increased by improvement in our linking system and greater atten- atten aten- aten t fon on to inv inventories liquidity of asta as- as ets ta enhanced s. s by the growing practice tice of building up reserves of cash id ni marketable securities Well Vei osen industrial bonds in consequence conse conse- quence are far more attractive rum om a a. a security viewpoint than thane e ver er before before before-a a fact which in our pinion opinion is not fully reflected in their existing price levels The review tal takes es cognizance of t tLe je e happenings in the real estate estat bond kond field feld during during the past few months mouths and shows how the siua- siua situa which have arisen should lead p 9 9 improvement in the quality of real cal estate bonds saying Abuses In h the field of real estate estale bond financing culminating in the failure of two large organizations special special- zing in that field have served f to focus attention on the necessity for tightening up the regulations under which such bonds n may ay be Is Issued Several states have havea a already aready ready acted Pennsylvania acted Pennsylvania now inquires requires in the case case of construe construe- loans that either the bonds or proceeds of the bonds must be deposited deposited posited with wih the trustee to be paid out only upon proper ion fon Illinois stipulates that there lust ut be a a guarantee of comp completion eton s satisfactory to the secretary of rate ate Other regulations demand detailed appraisals careful cost es- es a trustee other than the underwriting house etc The rhe effect of these f-these efforts to re restore restore re- re store tore real estate bonds to their rightful r position which position which soundly Issued are among the safest of ot In- In vestments wl will doubtless be some lessening in output but with wih corre- corre ep p improvement in quality Commenting on the municipal arket the review says Contrary Jo o 0 expectations earlier earler in the year w municipal offerings have ap ap- eared in in eyen even larger volume than the tho corresponding period last ear ar r With YUb temporary reactions one ne of which has developed recently Ices have advanced despite despie this 1 ge e output to new postwar levels level J being beIng particularly evident mong mong issues suitable for savings saving and insurance companies which institutions have been acely act ac- ac t ely in th the market market The bonds of or orn n many n ny smaller less well wel known corn com have not reflected the upward upward up up- ward ard trend to the extent that with o of C existing conditions i appears r they should Shoud i r 6 gl L s expensive x relI operations during the pre present ent ear ar have particular significance in m ine ind I e d' d municipal market market first first as an Pt toh of probable low lw rates on p lc obligations for fO a long p period and anU second as a source source- of lar lari j 1 demand demard since Inc a consil er ble portion porton c cf the iho proceeds of ot time the c cled led lcd government bonds huv IHl f ind od or 01 will find their way into hit municipal market t he review then deals briefly wh h developments and trends i ifield h i ithe the field of public utilities con- con ig with wih this statement Tue Tie Tu e widening dude chee of l i eJr ers a of public utility bonds hold Hould find much encouragement in growing nu iber of states that I e e. e adding their thel Indorsement L 1 ID the tIme of t. t t ty bonds by y ad- ad ting us IS legal or their heir savings banks and cOmpanies Recently Mich- Mich g gIu and Minnesota were added to toh toh h ranks of and andJe Je ral other of the older New England En- En En En- gland rland states which had previously I such bonds Within the ent year Iowa has also adI ad- ad I utility bonds to the Invest Invest- Tnt flint t of Its Is Insurance companies ir J I ith h 1 the legalizing of certain types t f utilIty bonds for or Institutional in- in estment a new element has been 4 Injected nj Into the factors which fix j price priCe level of o such bonds This Thise I rge e new demand for legal has naturally raised their mar- mar 1 prices More than that this crease e makes them tem less attractive Individual Investors which f diverts their atten- atten on onto ri to other Issues Issue thereby the price level of 4 R as well wel With the continua continua- LI on n of legislation fa favorable to i ty bonds which It i appears reat reaf rea- rea t f na le to expect further Improve- Improve Tit ent In the price level of both I gal l bonds and those which r do not appears appeal probable t |