Show BONDS CONTINUE 1 i AT HIGH LEVEL LEVEI I-I I li I-li High i g gh h Grade Railroad Issues Top Weck's V eck s s Ily By Ii BYRON SELLER ELLEU ciul Cun Ci Conc bt of f Standard Standard- Examiner Copyright 1926 1 2 by Consolidated Press Association NEW I YOnI YORK Feb Further 20 progress has been blen made this weel In Iii the advance which has hILs been un- un un under der wa way In the bond market and the tho average now stands at ot a near new high h since sine 1917 1117 Th The consistency of ot the rise Is It Impressive feature going on as ILS It done now without Important set set- setback set setback back tor for more than a month and undisturbed either by tho the vagaries of stock speculation or by minor fluctuations In money While all grades trades of ot bonds have participated Tn In the movement Inon In ono one respect tho buying this week eeK has been different from that earlier In the th month The Th feature this week welk has hili been the high hl h grade rail railway way Issues In the legal investment class the th kind that the time law allows savings banks to buP buy In New York state tate DE I EXISTS Up to about the middle of ot this week there has been what amounted d to a deadlock between holders or of othes these bonds and potential purchasers purchasers ers Prices for the sales sale recorded on the exchange had ranged around the high points In recent months but transactions were on a small scale because the owners owner would not shade prices and refused buyers to raise their bids On Thursday however this sit sit- sit situation changed chanced w when en suddenly certain certain tam tain banks bank and d dealers lers entered the market and cleaned up the all a ablo ebb bl supply of ot those high hith grade rade bonds at the th offered prices All this business was done over the counter trading Subsequent sales ot of odd lots were made mada on the th ex- ex ex exchange change at prices price higher than the large blocks had changed chanced hands outside TransactIons Transaction In selected Issues ot of this type ran as high as from 00 00 to tl par value and In sonic some cases even higher Some of the buying was doubtless for ac ac- ac ac savings banks hanks which In Intended tended to hold the bonds for per per- permanent permanent permanent manent Investment but more of It came from middlemen who nero ere anticipating the development de from the he savings banks The theory was that sooner or later these Institutions would be forced Into the market and that they would have hav to pay the sellers seller's price to till fill lit their requirements Whether this the theory or is correct only time can tell but It does seem that even a a legal local bond on a 4 45 per percent percent percent cent basis is hardly a bargain LAW CHANGE CR P PROJECTED Should the New York legislature enact the proposed law making leg leg- leal legal ler-al ler al Investments public utility bonds which pass certain tests the th pre pre- prevaIling pre pre yield on the th railroad bonds will look still less attractive for earnings and property values con con- considered con there are arc plenty of utility Issues just as high grade erade Invest invest- investments Investments ments meats as as are the tile corresponding raIls and the price pric of the the- utilities Is much lower True there has been some ad- ad adVance ad advance vance ance In the utility group croup but it has not by an any means discounted the effect ct of ot this contemplated change chan In the th law The action of or th the New NewYork NewYork NewYork York state legislature In this mat mat- matter matter matter ter Is Important because Ne York Is the largest field Held for tor the sale sal of legal bonds and because the New NewYork NewYork NewYork York state tate Jaw law has been more rigia than tl that of or most other states Another interesting tea of the week was wa aa the th prompt sale or of City of ot New York 4 I Iper per cent bonds and corporate stocks at prices to yield from tp tl per cent The success of or this HIls or of- of offering ot fering showed that hat the th market for tax exempt securities has not been unfavorably affected by prospective reduction in sur cur taxes The Tho Issue was as more mor than nine times over subscribed and nd was the largest sale ale of ot Its kind in the th his his- history his history tory oft he city Buying orders for tor forthe forthe the bonds bond after they had been placed on sale falo by the successful syndicate came cam from all parts of th country Demand was wa stimulated stimulated by th factors factor that were In bringing about the higher prices price tor for the ta tax exempt Liberty 3 namely the preceding scarcity In municipal and state ot- ot of f s and the fact that the th urn lim limited iteA to tax exemption applying to oth- oth other oth other er Liberty bonds terminates on July 1 next MOTORS GOBBLED UP VP Testimony to the underlying strength of ot the Investment market was also afforded by the offering and sale aale aJ of ot the General Motors Acceptance corporation 5 per cent serial lerial notes at prices to yield from 5 to 6 per cent ac- ac according according ac cording to maturity It was also a striking commentary on the growth of the th business of or financing the sale ot of motor cars In the higher yielding section or of orthe oth the list buying has shifted about from ono one Issue to another and from ono one group to another There Ther has been a little better belter market for is- is issues Issues KUCS Is-KUCS sues especially ly at premiums especial especial- ly the second grade erade railroad bonds with 6 S per cent coupons In the foreign department several new h high bySouth prices have been been- made mad by bySouth bySouth South American bonds bond French Obligations have held their ground I remarkably well ell considering the extreme weakness In franc cx- cx ex exchange change It was WILS Interesting to note noto not that for th the year to date the range rane be be- be between between tween the high h hl h and the th low for tor French 7 has been only 2 points This represents surprising stability at I the tho th close on Friday night ht prices tor for all these French Issued were nearer tb the th high than to the low v ot of o the th year |