Slow Bond Market

The bond market again experienced a dull week, no important price changes being evinced except the continued pressure upon Liberty Bonds. These obligations of the U. S. Government have declined slightly, partly in consequence of such symptoms of an advancing money rate as recently shown by Reserve rediscounts and Treasury certificates, but also because of selling by banks. During the recent business depression, in the absence of suitable commercial paper, many banks invested their funds in Liberty Bonds to an unusual extent. The present expansion of trade and advance in commodity prices have led to increased mercantile borrowings from banks, which are now beginning to sell their Liberties to accommodate their depositors. The market for Liberties is too broad to reflect this bank selling by violent fluctuations, and it has been discernible only in their gradual fractional decline. Liberties at present prices are now in more direct competition with other tax-free State and Municipal issues.