Show BONDS HIG HIGHEST IEST IN NINE YEAR YEARS Money Droney Easy Foreign Is- Is Issues Is Issues sues In Good Shape I Reserve Ratio Up B Dy By BYRON SELI ER Special Co Correspondent of The StAndard Copyright 1928 1925 1 2 by The Tho Consoli dated dated Press Association As NEW YORK Jan 23 The 23 condition of ot the Investment In mar mar- mark markt mar mar-kih k kt at the end nd nd of ot the week can be summarized In the statement that the aver average price of high grade grado bonds Is at the highest price since 1917 1911 and that the tho demand de- de demand mand for tor tho the best secured And the most thoroughly seasoned of these Issue Issues Is greater titan than tho the supply The story Is ii not fully tull told by quotations on the stock exchange These are It Il Is tru true higher but the record of prices doe does not To- To reveal Toveal re reveal veal the strength of tho the market It Is only when buyers go gJ out for Cor substantial blocks and most ot of this sort of trading Is lone done over tho counter that tho the situation t Is made plain BEING HEING BROUGHT UP tP UPTake P Take for tor Instance toe thO case ot of bonds carrying C G per cent cou- cou coupons coupons cou coupons pons selling around par whereas odd lots can be secured on the board around recent prices price that thatIs thatis thatIs Is not true when the purchaser wants anywhere from 26 25 to pieces at a time Gradually se- se securities se securities of this grade have ha beca taken out of ot tho the street and put II away way by the financial Institutions an dother large Investors for permanent holding What this deman demand means Is that the experienced buyers who represent these Institutions are convinced that the tho trend of at the bond market Is upward and that prices now prevailing do not fair fair- fairly fair fairly ly Iy measure values a as they will be beIn bein beIn In the next half year SE EtISE IX N MOSEY ro EY Close observers of ot the market have ha become strengthened in this conviction by the Increasing ease case caseIn caseIn In money This Tills week many ny brok- brok brokers brokers brok brokers ers were offering to bond houses funds for tor four months at 4 per cent whereas a II few weeks I Iper ago these same houses were ere bid bidding bid bid- bidding ding ding 4 per cent tor for the same accommodation This Is not any Gr at change chango In the Quotation but It hoes signify a 0 tendency This weekly statement of the federal reserve banks confirms this de- de de deduction The reserve ratio of ot the New York tork bank rose ross this week from 81 gi 8 per cent t to tc 66 per cent and the corresponding figures for forthe forthe forthe the system as a whole are at per cent as of ot January 13 and 7 74 4 per cent as M of Jan ary 20 Total gold holdings for tor all the 12 banks are 1110 now at the th high ot of the month while rediscounts se- se secured se secured cured by government collateral and not circulation arc at the low low- low cat eat esl In part at least this Is a 0 seasonal 1 phenomenon but lut It Is effective just the tho same KEW NEV EW FINANCING One result of this satisfactory market condition will be bean bean an Increase In new ney financing Cor- Cor Corporations Corporations Cor Corporations In tn a position to do so 80 will take advantage of the tile opportunity to refund outstanding obligations at a 3 lower raty ratu rat of or Interest It was was as even en predicted this week by one of the leaders in the power and light Industry that within a avery ery short time lime a 4 Oi t per cent power and light bond would be offered In the AmerIcan Invest invest- Investment ment meat hitherto market something hither hither- hitherto hitherto to unheard of ot There Is no reason why wily electric light and power companies should not be able to money on onas onas onas as favorable terms us is s the rail rail- railroads railroads rail railroads roads comparable In financial strength except the tho tact that the utility Issues are not In the larger states New York being the most conspicuous Instance legal Investments for tor savings bank The power and light Interests are again backing a I to have their bonds put on a parity with railroad obligations obligation and to a layman there appears no valid ob- ob ob objection Certain Certainly I with the small small- smaller cr er Investor power and light so- so se securities have han an Investment stand stand- ing standing that the railroads have havo so 80 sotar tar far been unable to command BUYING Along Alon- with the advance od In the domestic bond market there has been renewed buying of ot foreign Issues but here hero purchases were moro more selective and ond the list lIt did cud not move as a II whole Still the feeling toward foreign Investments investment Is ii better than In Iq a long along time and to a certain extent this sentiment has hal been reflected In iii price A As time lime goes goCS by and the Investor sees that the political and financial dangers are not 0 as formidable as they appeared to be bea bea bea a year or two ago he be gains con confidence and the high return on his money obtainable In to foreign reign Investments becomes and more tempting JEW FEW IN IX DEFAULT DEF As a n matter of or fact outside of the Mexican Issues no no foreign I bonds listed on the New cw York stock exchange are aro In default and ot of those put out In recent years Only the Russian bon bonds s and one South American provisional bond I are not paying interest t among those dealt In In Uie te outside mar mar- mar ket market French Issues still lag log behind but they are are are-a a 0 caso case by them them- themselves selves themselves Even the French FrlIch bonds I are far above their record lows resistance and show remarkable price resist resist- ance to the unfavorable factors which bear down so strongly on franc exchange It If there then are no new untoward dev abroad and money remains rca rea- reasonably rea reasonably easy the foreign bond list lIat may be gradually to work |