SHORT SUBSCRIBED

Wanganui Chronicle, Volume 79, Issue 204, 31 August 1935, Page 9

SHORT SUBSCRIBED

U.S.A. TREASURY OFFERING FARM MORTGAGE BONDS OFFICIALS NOT ALARMED [By Telegraph—Press Association —Copyright, Received Aug. 30, 8.45 p.m. WASHINGTON, Aug. 29. The Treasury to-day suffered the unusual experience of having security issues fall short of subscriptions. A total of 100,000,000 dollars farm mortgage bonds offered at auction, yielding about 1.5 per cent, interest, attracted only 85,000,000 dollars in tenders. Officials explained that the failure of investors to respond was because of 1 the present weakened condition of the bond market and the fact that tne interest was so low. They said they were disappointed, but not worried over the future of the financial programme, which requires heavy borrowing to meet New Deal relief expenses. Sharp Note Struck Tho first failure of Government bond offering in the Treasury’s history struck a sharp note in the capital, but drew quick assertions that Federal credit was not impaired. Both tho Treasury and a majority of spokesmen for the commercial banking structure joined in maintaining that the Government’e borrowing power had remained undamaged, but on other points thej have diverged. The Secretary of the Treasury, Mr. H. Morgenthau, jnr., conceded that the situation was not so good, but ne ascribed no reason for the response of only 85.000,000 dollars to the offering of 100,000,000 dollars for four years, in fully guaranteed 1| per cent, bonds. He was emphatic in declaring that the auction system, of bidding was not responsible for the failure. Dealers and banks arc emphatic that it was. They declare that they could not gain enough profit to make it worth while to bid. Ono usually well-informed private banking quarter thought the failure indicated that saturation point might have been reached in the Government bond market, but little alarm is expressed. BON’D REGISTRATIONS EXTENSION OF DATE Received Aug. 30, 10.50 p.m. WASHINGTON, Aug. 29. At the request of officials of tho New York Stock Exchange the Federal Securities Commission has extended until March 31, 1931. the date by which some of tho 4,500.000,000 dollars bonds in foreign countries and their political sub-divisions must bo registered with the Commission. This delay, it is pointed out, gives foreign issuers the opportunity, if they so desire, to consult with the Commission concerning the exact nature of tho information required with registration.