Show BOND MARKET PRICES LOWER Competition of f New N e w Issue Factor Utility Rates Bates R tes Down By fly BYRON nON SELLER of The ul Correspondent Special Standard NEW YORK Oct 22 While While the thc stock I market ha hM been Men performing spectacularly the bond market of o the week has bea been moving mavin tranquilly along Prices are a a. shade hade lower than they were a II week ago but that Is because of the competition of new issues and not from the ef effects ef- ef Sects of over buying as In stocks New flew bond offerings this week to- to taIled over making makin it the second largest large week of 1927 In Inthis Inthis Inthis this respect The record week was that ending February 4 4 when there were more than of new Issues A week ago the output was almost so that the ag aggregate ag- ag aggregate of the last lut two weeks is ismore Ismore ismore more than These are large luge sums even en In tn these thc days and it ft was not surprising that the advance in seasoned Issues slow slow- slowed slowed ed td up The effect Is La not likely to wear ear off In a a. week or two either cither It will take a a. longer time to place permanently this great number of ot new bonds Some authorities have been b n predicting a period of congestion congestion congestion tion In tn the investment In market simi simi- similar similar similar lar to that experienced last June This view however Is not universal universal- universally ly hold held For one thing there still Is s a super-abundance super of money seek seek- seeking seekIng seeking ing employment and there ore DIe as asyet ASyet asyet yet no Indications that the supply of 01 Investment media has outrun the demand DOMESTIC DO RATE LOW LOWThe LOWThe LOWThe The weeks week's new offerings have bave had some unusually Interesting features In the first place low coupons have been the rule on all domestic bonds Two utilities have hate e financed their re requirement re- re requirement e lile with securities securities r I J yielding rd the investor from 4 12 2 to about abou 4 3 2 per cent The Edison Electric Illuminating company of Boston sold Bold notes of them running three years ears with 4 41 2 2 1 per cent coupons and of 01 them running one year with a 4 per cent rate The newly organized d New York Power l. l i Light corpora corpora- corporation corporation corporation tion marketed a a. year 30 mortgage 9 bond with a 4 2 1 per cent cent coupon at a price to yield less than per cent Only a a. year jear or two ago financing even by the most success success- successful successful successful ful of public utilities would have havo been Impossible on any basis buls so fa favorable fa- fa a- a to the borrowers Alon Along the tame line next week the I federal land banks are scheduled to I offer otter of bonds with a a. I 4 per cent coupon the lowest rate rale since th establishment of 01 the ES E'S I tern tem Finally conditions of a quarter quarter ter Ocr century ago were recalled wh- wh l h the Morris Morra and Essex railroad nil road sold nearly of Its first re- re re I re runding 3 2 1 per cent mortgage bonds The return to the buyer burer of 01 this Issue was as only per cent Strictly speaking however this is not new financing but only the offering ottering of an additional Issue sue of treasury bonds originally brought In 1900 Needless to say Investors do not look kindly on the reduction of 01 their Income that such purchases represent but It Is- Is the trend of the Umes times and will 1 have to be accepted RECORD OFFERING The New York Po Power Po er A Light offering Is Interesting also as being the largest power and light lIht offer offer- offerIng ofterIng offerIng Ing er e made topping by a a. small margin martn the Associated Gas Oas d l. Elec Elec- Electric Issue of April 1926 1928 The latter by the way carried a 5 2 1 per cent coupon showing the progress that toot has been made since e that time to toward to- to toward ward ard lower Interest rates There have offerings In the past put but they have been In the tele tele- telephone telephone telephone phone field where the American Telephone and Telegraph reigns su preme prem Another feature of the New York rower Light LI bond b Is worthy of o g ent comment That t organization g Is is a holding company but provision has been made for retiring all the un un- denying derl bonds or practically all by January 1 I 1 1829 1929 This development In company financing is b comparatively recent but It Is La of ot otreal real advantage ad to the Investor If U the tho obligation of a I. I holding com corn company company pany Is without prior liens and has h the additional attraction of or a much better etlAr market That Is now the trend In railroad financing also FOREIGN FINANCING Turning to the foreign field the contrast is striking The most Im Important Im- Im portent offering of the week here was wu the republic of Poland tion loan It consisted of ot year twenty Ss S's at a a. price to yield the buyer per cent This Is high enough to satisfy the most diligent seeker after a rh hl-rh return The trouble Is that there Is an In in- in indefinable definable risk In all these foreign bonds otherwise the rate would not be so high high- It Is 15 a curious commentary on the claim so 0 often made that m the strength In the stock l k market was primarily due to Investment demand that stocks should have had so violent a a. break the very week that all this large volume of bonds was being marketed It goes gocs to show not that Investment In demand had no not part t t In tP putting up prices s for stocks but that speculators u a l had c been trying l g to ride along on the crest and that tha they were unprepared for the sud sud- sudden sudden den recession Doubtless D when the technical condition of the stock mar mar- market market ket has hu been restored Investors m will wUl again lain be found buying the better grade of stocks Before that time however further lurther readjustment Is probable Neither Investors nor spec spec- speculators speculators are accustomed hastily to enter a market which has shown Itself as sensitive e to liquidation as stocks ks have this week |