Show STRONG DE DEMAND AND ANDIN IN GOOD BONDS BONUS S Supply 11 P ply of Investments inadequate Specula Specula- tives Go Begging Ily BYRON 11 SELLER Special orr Correspondent t of The Copyright i 92 5 Consolidated Press Association NEW v YORK YOn May 15 15 Week week by week by-week Iho I ho line which divides Ilu In- In Investment investment In Investment vestment and e activities 11 i more clearly drawn This hu ha been true truo of ot the the- difference bp tween the bond anti and mat for tor a a long Ions time this weeK It show show show-cd ed cd within the bond lt The supply of he strictly J high high- crade grade grado utility lind nd railroad oblige oblige- ions Is tn-r tn increasingly to meet me-et the demand but anything of IC ofa II a e p nature has to go e seeking a purchaser The feature of ot the week was the prom prompt tIt sale of ot the th New England J En and Telegraph bond Issue Is- Is Isue sue ue carrying a L tour foul our and a 1 half per pel cent coupon the th second long lon term lone term utility obligation to be b cut cutout cutout cutout out at to so low n II rate since the th war var warTh The first marketed In January was for tor or the tho th account of the tho th Com Corn Commonwealth Jo Edison company Suc Sue SucceSS Success cess of o both offerings Is significant ant ant ant not only of o the progress to- to toward toward to toward ward refunding outstanding obliga on a lower yield some basis basis some thing which has ha been going coins on with Interruptions for tor or 4 or 01 5 years but years butof ot of the th advance the more mono prosper prop r-ous r OUs public utilities are ar makIng to the point where they can finance their thel lr needs on a basis as o advantageous as that open to the rail railroads roads In the same class UTILITY BONDS GOOD The Th market utility bonds Is still Closed to the tho savings banks bank In some om eastern Castern states notably Nee Ne York but the th InsurAnce companies are constant buyers bUers of these thes oh- oh obligations ob and the th demand Is fully equal to the supply Government bonds and the th high grade rails favor avor with the utilities One On of ot the th liberties reach reached ed a new high for Cor the th year ear and soy soy- v-cral v eral of ot the first tint mortgage mort age railroad bonds did the tho same lame New financing financing In ing In thi this grade s-rad s Is on a small scale Institutional bond buyers have havo difficulty in meeting theIr requirements and It Is only a ques ques- question ques- ques question question tion of ot time limo dm be before Core Individual In- In Investors investors In Investors will be forced to take ob ob- ob ob not quite quit so well It if they wish to keep kep up the th average yield on their holdings Outside the gilt edge class bond bonti most sought for tor or have hav been some of the th second grade rails and some of the th oils In both groups the demand has been selective Probe Probably Probably ably there are more mor opportunities In the oil list than In the th railroad group At any rate the th good rood show show- showIngs showings how Ings Ings In the th annual reports report of o many oil producers now being published have made mado an Impression on in- in In Investor vestor who do not usually accept securities having to do 10 with t tio e oil Industry The Th search for railroad issues sellin selling out of o line Is more mor difficult difficult cult To be bo successful the th buyer must overlook sonic son technical de- de detects defects de defects which have hav held back the price of o a 0 particular Issue up till now For example one of the leaders this week was a Q junior rail rail- railroad railroad rail railroad road bond hond amply protected by pro pro- property property pro properly perty perly value and earning power but handicapped by the fact act that there ther was an open mortgage ahead of ot It under which new financing will wUI willbe willbe be done STill STRIKE K H EFFECT Termination of ot the treat great British strike had only a momentary stirn- stirn stimulating effect upon foreign bonds United d Kingdom obligations Im- Im Improved Im Improved proved somewhat but the continental continental tal countries obligations were not helped Probably the break which the Italian bonds sustained a week weel ago following the th dissolution of the syndicate was a disturbing in- in influence In Influence fluence It Is la Interesting to not note that there are aro now listed and dealt In on 00 the th New York stock lock exchange bonds of three large larce continental European countries all with seven se per pel cent coupons and all payable parable principal and interest In French 7 and Italian Is sell at practically the th same m price to yield just under 8 I per cent German 75 sell lIell 13 points higher hither to yield about per pel cent The discrepancy Is striking As to break In the French and Italian exchanges that has hardly been a a mark market t u In Influence ence once with the bonds As a mat mat- matter mattot matter tot ter of o fact act the th decline In the th lIal- lIal ItalIan Ital Italian ian bonds bond came before the th slump lp In tho exchanges exchange The revolutionary disturbances In Poland were reflected In n a sell sell- selling sell Inn Ing movement In Polish bonds In- In In Information formation as to the meanIng of o th trouble was too vague however to allow of any Intelligent conclusions ions Polish bonds have hav long sold soldon soldon oldon on a higher yield basis basla than thOon any other listed foreign orel n Issues Issue and so they were susceptible to adverse new Considering all the uncertainties of the European situation the surprising thing thine Is not that the bonds bond sell lieU down but that they hold up as well vell as the they do It lt 1 Is still true tru that outside of Russia Mexico and In one on or two or of the th smaller South American municIpalities there are no do- do de defaulted foreign issue Issues activelY bought and sold In this market Incidentally the th South American bonds meet increasing favor tavor at the expense of the European descriptions tion tlona At least two new n w high hie rec- rec records rec records were reached this week one In a Brazilian and one on h iq In a Co Colombian bond There Is no change In the money situation or In the th trend of com corn commodity commodity prices prien the th two factOrs which govern long term mO move move- movements mova ments menta In bonds The rhe moderate bus business iness Incas let down which the th stock market apparently expects Is not pronounced enough to have any In- In in In fluence on the th bonds market The onlY result Is a a falling failing off oct In the takings of oC money monty tor for commercial purposes all of ot which works work to the he advantage antage of or bonds Nor notwithstanding standing another surplus ot of o Im- Im Im ports Is there any Indication of an outflow of ot gold cold which would dl di 11 the th still sUll overwhelming sup up ply of ot money socking Investment |