Show FOREIGN DOLLAR BONDS ARE FIRM I U V S Government Secure Securities Securities Also at Best Prices of YearBy Year By DJ BYRON BVRON I SELLER ELLI H Correspondent of ot Standard Standard- Copyright l 1 1921 27 by Consolidated Press Association NEW YORK Jan The I-The 1 Th year ends with Investment Interest con con- confined con confined fined to two 1 group so 00 far tar as ns rate Interest bearing securities are Aro concerned These ar are first United States government obligations and second foreign dollar bonds Out Outside side these thue two classes the market marketha has ha been boen firm but dull Taking up government Isue first practicAlly all nil th the tho actie de- de de liberties and treasury bonds bons alike have sold this week at atthe atthe the best prices ot of o the year and for forthe the tho treasury bonds at t the best prices tor for all time The whole frou group h II is working toward a a Ih per pcr percent percent cent basIs basi anti and that the treas tras- treasury treasury ur ury department nt will bo be able to float flOM the next long term terni loan on termS more favorable to the government than at an any time since tho the first Liberty 3 a were sold admits of ot no doubt MONEY M nY T n RATES S STABLE ST Two Tr T o Inference arc are to be b drawn front from the th display of ot strength In Inthis inthis this quarter one ot of o them that the banks have hav no expectation of ot an any Important ot of o monc money rates and the th other that as a the supply ot of o the he United State tlc ties Is diminished through h debt d bt reo cc- re retirement higher hither price tor for remaining outstanding are as assured a aured b by the demand front from cor- cor corporations cor corporation which find rind them the tho most mOlt convenient media for tor Idle idio I For or this last purpose no into in In C balance u C u tutO IS in III gIlL LI Il sheet cash cali ali mid and government go bond bon bond arc arc for all practical purposes Both convey the same Idea to the mind of ot the ana anCl- ana ana- analyst analyst lyst This view Ie of ot the tile matter namely that gOvernment bond bonds tor for tern tern- tem temporary investment are aro In a class by s i Is confirmed by tact fet that there has been no overflow of demand into dih trade grade grad corpora corpora- corporation lion tion bonds long lone or short term tern It anything thc these e ha have havo vo lagged be- be behind be behind hind bInd tho the rest rut of ot the market Even tho the S savings s bank banks do not seem room to have hae been active purchasers ers cs ot of the first mortgage rails rail m may be bc explainable on the ground that the tho prevailing yield of the mOst seasoned securities of ot this type Is Ionly only around 41 U per cent and that further Investment In this group grollI would not bo be b profitable It If the movement not yet et general but at at- at at wide aide attention to ralso ral othe the mato i ate of ot interest on savings sa bank deposits Is I to be Justified The best municipal bonds return loss lor than the corresponding railroad Issue and so they too are aro not available I it If savings banks bank wish to their Income for the Iho benefit ot of o de Sc depositors posit ora IN l R II E MORTGAGES GIS The Th only conclusIon Is that larler sums um are arc being brine placed In real r al es- es estate estate tate ei-tate tate mortgages In fact tact as It stand today the real estate mortgage makes a snore more comparison COm In point o ot of yield eld with corporate se- se securities securities se securities than at any time during tho past poet year The Tho buying ot of foreign bonds has gone on with quite a a different mo- mo mothe mo tie the Hero Here the attraction has been not only the high yield which these securities almost uniformly give but the speculative In other words It ha has not been a n pure ly Iy purely movement Investment That this Is the case cafe Is abundantly proved by bythe bythe bythe the way vay in which French ties tics have taken token tho the lead hether tho French financial situation has haa red cleared up sufficiently to support tIme the rise riso In French rench dollar bonds bond this week Is not the question The poInt Is that there Is I greater op tit ap- ap opportunity for additional advances advance In the French list than anywhere else elso In the foreign group Compare the th French with the German tor for Instance German s the International loan selling se at are arc two points pointe above the th price at which thc they may be called The Investor who buys bus tin pern-tin erman 7 at this time docs does so o because became the C 6 per cent c nt return Is I attractive to hIm The buyer of ot the tho French ls on the theother theother other hand hu has ha not only the imme- imme Imme Immediate State diate compensation of ot a 7 1 per cent yield but the chance chine It If all turns out well of ot five points point or there there- thereabout thereabout thereabout about about additional profit above the sinking fund unil call price Ia reached FRENCh SITUATION nox French TA His sold old this week high hith higher hIgh hIgh- hither er or than ever er before In their his his- history his history tory and ond nd on a a lower low r yield basis baslo than han any other French bond and for tor one reason only tha that they are callable I non callable before maturity The buyer a at prevailing prices price cn ace la I ages agea even larger larrer profits here ai- ai al way al-way ways aa provided there Cre Is no new set set- setback setback back et-back back In French finances finance In other i words an Investor II I willing to take takeI the risk rick on a foreign bond It II he Is I paid to do so to It will not do then to take for granted that the strength In the foreign Issues this thi week was arc a re- re reflection re reflection of ot an- an any striking change I abroad It Is true that the th Dank Dankof lOt of France Franc has undertaken to hold bold the franc around the 40 c e level for forthe forthe the the present but It Is not DOt official stabilization What bAt has bas happened I azas putto as that some Bome ome check had to bo be put putto putto to the th deflation process to give time to French business to readjust i itself The rhe International debts are I still a menace to permanent ro- ro reI re reform form torm and until they are settled I and It is 18 1 seen cen that the expected In in I crisis can bo be successfully I met doubt will remain about the French situation Belgium has balanced Its budget Luda-et and has ratified the tho debt agree agree- ment airen-ment mont ment with the Iho United States but at a heavy cost to Belgian Bel taxpayer ero er Belgian dollar bond bonds have been second In strength only to the French durl g the week but that was wa not due to conviction that Belgium's troubles trouble Mere ere cre at an cud either It Is I fair to say ay that the risk rl k Inherent In these for tor- den tor-den eiga bonds bond la is sloWly dowly being lessoned lessened but that In some degree decree It still holds It Is also to be Ie kept In mind that after all the rise In the tho general market during 1926 7 1 per percent percent percent cent represents r a larger specula specula tl tive quality on any security In De lie December cember than It did last January 00 00 |