ISSUE NOT FILLED

Ashburton Guardian, Volume 55, Issue 273, 31 August 1935, Page 5

ISSUE NOT FILLED

AMERICAN FEDERAL BONDS.

FARM MORTGAGE FINANCE!

(United Press Association—Copyright) WASHINGTON, August 29.

. The Treasury to-day suffered the unusual experience of having security issues under-subscribed. One hundred million dollars in Federal farm mortgage four-year bonds, - fully guaranteed, offered at auction, to yield about 1.5 per cent, of interest, attracted' only 85,000,000 dollars in tenders, f Officials explained that investors failed to respond because of the pre- - sent weakened condition of the bond market, and because the interest .was ( so low. They said they were disappoint,-~ ed, but not worried, over the future financial programme, which requires heavy borrowing to meet New Deal relief expenses.

As it was the first failure of a Government bondi offering in ■ the history of the Treasury, it struck a sharp note in the capital but drew quick assertions that Federal credit was hot impaired. Both Treasury and majority spokesmen for the commercial banking structure joined in maintaining that the Government’s borrowing power remained) undamaged, though on other points they differed.

Mr H. T. Morgenthau (Secretary of the Treasury) conceded that the situation was “not so good 1 , 1 ’ hut he suggested na reason for the poor response. Mr Morgenthati was emphatic in declaring that- the auction systeniof bidding was: not responsible for the, failure; but dealers and the bankswere equally emphatic. that it was, They declared they could not gain enough profit to make it worth while to hid. One usually well-informed, private banking quarter thought the failure indicated that saturation point might have been reached) in the, Government bond market, but little alax-m is expressed.

REGISTERING FOREIGN BONDSi

NEW COMMISSION POSTPONES DATE. -vl -• . J. »* A--Y ;i . WASHINGTON, August 29. At the request of officials of the New; York Stock Exchange, the Federal Securities Commission has) extended until March 31, 1936, the date by' which some 4,500,000,000 dollar's in bonds in foreign countries and their political sub-divisions must be registered with the Commission. This delay, it is stated, gives foreign issuers tho opportunity, if they so desire, to consult with the Commission about the exact nature of the information required with the,registration. . ,