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Not f o r Publication

^CONTROLLED

SIX M U H .
OTS

H.lU

February 12, 1958
capital market

d^vi^lop&nts

Large public s e c u r i t y o f f e r i n g s f o r new c a p i t a l during the week
ending February 7 t o t a l e d &U7 m i l l i o n f o r corporations and 4233 m i l l i o n
f o r S t a t e and l o c a l governments. This.week, corporate i s s u e s , including
t h e e x p i r a t i o n of s u b s c r i p t i o n r i g h t s , a r e expected t o t o t a l ^172 m i l l i o n ,
. and S t a t e and l o c a l government i s s u e s t o t a l i n g $1*8 m i l l i o n a r e scheduled
f o r s a l e . Included i n t h e corporate f i n a n c i n g t o t a l i s an estimate f o r
the Royal -Dutch Petroleum Company's i s s u e f o r which s u b s c r i p t i o n r i g h t s
expired e a r l y t h i s week. Final information i s not y e t a v a i l a b l e on t h e
proportion which was sold to American i n v e s t o r s .
Bond y i e l d s - Changes i n y i e l d s on outstanding bonds were mixed
l a s t week. Yields on S t a t e and l o c a l government and high-grade corporate
bonds i n c r e a s e s , while those f o r corporate Baa's and U. S. Government obl i g a t i o n s declined.
Stock p r i c e s - The Standard and P o o r ' s index of 500 common stock
p r i c e s increased in t h e early p a r t of l a s t week, then declined. P r i c e s
have continued t o decline t h i s week, closing a t 1*0.93 on Wednesday.
More d e t a i l e d information concerning recent c a p i t a l market developments i s presented in t h e attached e x h i b i t s .

C a p i t a l Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System.




EXHIBIT A

HIGH-GRADE

BOND

Date

YIELDS

Corporate
Aaa 1/

U. S. Govt,
long-term 2/

State and
l o c a l govt.
Aaa ] /

Spread between
U. S. Govt, and
Corporate 1 State and
Aaa
| l o c a l Aaa

(Per cent)

1958 - High
Low

3.12
2.99
3.09
2.85
3.17
2.91
3.79
3.07
k.lk
3.66
3.68
3.56

January 10
January 1?
January 2k
January 31
February 7

3.65
3.61
3.57
3.56
3.59

1953 - High
Low
195k - High
Low
1955 - High
Low
1956 - High
Low
1957 - High

(6/19)
(1/9)
(1/8)
(U/23)
(12/23)
(1/7)
(12/28)
(3/2)
(9/27)
(U/12)
(1/3)
(1/31)

3.19
2.7k
2.7k
2.15
2.97
2.6k
3.1,5
2.8k
3.76
3.18
3.28
3.20
3.20
3.21
3.27
.3.28
3.27

(6/5)
(12/31)
(1/8)
(8/6)
(8/5)
(1/7)
(12/28)
(2/17)
(10/18)
(2/8)
(1/31)
(1/10)

2.73 (6/25)
1.98 (1/8)
2.21 (6/10)
1.90 (9/2)
2.3k (9/8)
2.05 (5/26)
3.05 (12/27)
2.17 (2/23)
.3.k5 (8/29)
2.76(2/21)
2/86(1/9)
2.65 (1/23)

.38
.20
.k3
.30
.27
.11
.kl
.12
.60
.27
• k6
.28

2.86
2.68
2.#
2.68
2.70

• k5
.kO
.30
.28
.32

.83

•

'P
.62
.30
.76
.57
.71
.32
.k7
.15
.62
.3k
.3k
.53
.62
.60
.57

1 / Weekly average of d a i l y f i g u r e s . Average term of bonds included i s 25-26 y e a r s . .
2/ Weekly average of daily f i g u r e s . The s e r i e s includes bonds due or c a l l a b l e in
10 years or more.
y Thursday f i g u r e s . Only general obligation .bonds a r e included; average term i s
20 years.
Not.—highs and lows a r e f o r individual s e r i e s and may be o n . d i f f e r e n t dates for,
different series.




LOWER-GRADE

BOND

YIELDS

STATE AND LOCAL GO

Corporate
Baa 1 /

S t a t e and
l o c a l govt.
Baa 2/

Spread between
Aaa and P

(Per cent)
1 9 5 3 ' - HighLow
1954 - High
1955 - High
Low
1956 - High
Low
1957 - High
1958 - H i g h
January 10
January 17
January 24
January 31
February 7

3.89
3.50
3.7k
3.a
3.63
3.45
4.41
3.58
5.10
4.42
4.96
4.68
4.92
4.84
4.77
4.72
4.68

(9/18)
(1/2)
(1/8)
(12/31)
(12/30)
(1M)
(12/28)
(3/9)
(11/29)
(4/12)
(1/3)
(2/7)

3.79
- 2.96
3.32
2.93
3.26
3.02
4.22
3.20
4.51
. 3.90
3.92
3.73
3.t8
3.77
3.73
3.76
3.77

1/ Weekly average of d a i l y f i g u r e s .
2
ten

^Thursday figures.

(6/25)
(1/8

(8/5) ^

(12/29)
(1/6)
(12/27)
(3/8)
(8/29)
(2/21)
d/2)
P-/23)

.69
.42
.68
.52
.54
.45
.63
.42
1.27
.64
1.28
1.09

1.21
.98
1.16
.93
1.03
.87
1.17
.89
1.21
1.04
1.09
1.02

1.27
1.23
1.20
1.16
1.09

1.02
1.09
. 1.08
1.08
1.07

Average term of bonds i n c l u d e s i s

Only general o b l i g a t i o n bonds are included; average

" Note?--Highs and lows a r e f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t

dates
f o r d i f f e r e n t s e r i e s .


EXHIBIT C

STOCK MARKET

-h-

Stock p r i c e

Trading
Common
volume 2 /
(millions
yields 3/
of s h a r e s ) ( p e r cent)

Stock market customer c r e d i t
Customers'
Bank
debit bal- loans to
ances 1*/ " o t h e r s " 5 /

Total

( M i l l i o n s of d o l l a r s )
1953 - High
195U - High
Low
1955 - High
. 1956 - High
1957 - High
1958 - High
November
December
January 21*
January 31
February 7

26.5k
22.95
35.98
2U.93
145.69
35.28
1*9.61*
1*3.22
19.08
39.1*8
1*1.73
1*0.37

(1/2)
(9/18)
(12/31)
(1/8)
(12/9)
(1M)
(8/3)
(1/20)
(7/12)
(12/20)
(2/7)
(1/10)

1*0.35
to. 33
1*1.71
l a . 70
1*1.73

2.5
3.7
l.li
1*.6
1.5

i.i
U.2

1.1*
2.5
2.2
2.5

2,5

IE 1
8 I
U.32
It. 1*2
3.61*

It,030
3,537

1,665
1,311*
2,388
1,653
2,805
2,517
2,823
2,71*0
2,887
2,1*82

I'M

2,517
2,1*82

780
661,
1,01*8
•71*6
1,21*1
1,018
1,267
1,155
1,163
1,051*
1,051

1*. 62

1 . 63
*
U-1*3
1. 1 2
**

1*.1*2

1,060
1,091*
1,058
1,067

n.a.—Not available.
' '
'
'
1 / Standard and"Poor's composite index of 500 common s t o c k s , weekly c l o s i n g
p r i c e s , 191*1-1*3-10. Monthly d a t a a r e averages of d a i l y f i g u r e s r a t h e r than of
F r i d a y s ' only. Highs and lows a r e f o r F r i d a j ' s data o n l y .
2 / Averages of d a i l y t r a d i n g volume on t h e New York Stock Exchange.
2 / Standard and P o o r ' s composite stock y i e l d based on Wednesday d a t a conv e r t e d t o weekly c l o s i n g p r i c e s by Federal Reserve.
h / Knd of month f i g u r e s f o r member f i r m s of the New York Stock Exchange which
c a r r y margin a c c o u n t s ; excludes b a l a n c e s secured by U. S. Government o b l i g a t i o n s .
y Wednesday f i g u r e s f o r weekly r e p o r t i n g member banks. Excludes loans f o r
purchasing or c a r r y i n g U. S. Government s e c u r i t i e s a t banks in New York and
Chicago. Weekly r e p o r t i n g banks account f o r about 70 p e r cent of l o a n s t o o t h e r s .
For f u r t h e r d e t a i l see B u l l e t i n .




Exhibit D
Corporate and Statu and Local Government
Security Offerings and Placements
(In millions of d o l l a r s )

1958
January
February
March

Corporate
1
1957
1

New c a p i t a l
1956

1958

573
712
817

796
e / 750

S t a t e and l o c a l 1/
1956
T
1957 ' 1

v jly
August
September

IS

818
1,11*6
61*1

765
51*6
393

378
1*90
735

991
91*4
973

April
May
June

1*01*
696
390

92li
771
1,189

e / 800
e / 825

1,063
654
838

529
581*
1*31

1*08
206
357

• 698
633
698

639
31*7
1*09

1,820

1,063
1,071
1,31*4

.

October
November
December

1,0114.
831
e/1,000

1st
2nd
3rd
l*th

quarter
quarter
quarter
quarter

3,1,79
3,iai t
2,078
e/2,845

. 2,102
2,805
2,556
2,922

^5%
2,029

1,1*90
1,603
971
1,395

lsfhalf
Three q u a r t e r s
Year

6,662
9,540
e/12,385

4,907
7,463
10,361

3,5%
5,069
7,099

3,0?3
4,064
.5,1*59

1,0892/
1,088

'

Excluding finance companies 3/
1st
2nd
3rd
l*th

quarter
quarter
quarter
quarter

Year
~

3,268
2,921
2,560
e/2,695

1,617
2,541
2,246
2,826

e/ll,446

9,260

e / Estimated.
1 / Data through June 1956 are Bond Buyer data c l a s s i f i e d as new c a p i t a l by
Federal Reserve; l a t e r data a r e from the Investment Bankers Association of America
and a r e somewhat more complete as to coverage than the e a r l i e r d a t a , p a r t i c u l a r l y
f o r Federal Government loans.
• 2/ includes $571.5 million AT&T common stock issue.
y Total new c a p i t a l issues excluding o f f e r i n g s of sales and consumer finance
companies.
Note.—Details may not add t o t o t a l s due to rounding.




Exhibit ii

H.llt

Large Public Security I s s u e s f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large I s s u e s Offered
(Millions of d o l l a r s )

Corporate

Month

• January
February
March
April
May
June
July
August
September
October
November
December
Januaiy

S t a t e and
l o c a l government

Other 2 /

386
306
19k
1*99
2ii8
176
262
357
185
1*35
386
1*39
506

567
6?1
788
1*77
329
877
525
526
537
571
1*20
399
318

100
50

^

125
25
39
25
30
75
215.

Large Individual I s s u e s Offered February 1 through 7

Issuer

Type 2 /

Amount
Coupon
(millions
r a t e or O f f e r i n g
Maturity n e t i n t e r - y i e l d
Rating
of
dollars)
e s t cost

CORPORATE
Tenn. Gas Trans. Co.
Texas U t i l i t i e s Co.

Com.stk.
Com.stk.

30.8
16.6

Swr.rev.
G.O.
Wtr.rev.
Swr.rev.

5 . 6 1962-97/72
5.0
1959-82
5.0 1962-78/68
25.0 1961-96/63

3.53
2.73
3.02
3.55

2.30-3.60
1.50-2.90
2.15-3.05
2.20-3.60

A
Aa
Aa

10.0

3.19

1.80-3.25

A

STATE AND LOCAL GOVERNMENT
Springfield, H I .
Columbus C.S.D., Ohio
D e t r o i t , Michigan
Allegheny Co.San.Auth.,Pa.
East Baton Rouge Par. Sch.
Dist. Nb. 1, La.




G.O.

1959-78

—

1

H.lii

E-2
Large I n d i v i d u a l I s s u e s Offered February 1 through 7 (Cont'd)

Type 3/

Amount
Coupon
[millions
r a t e or
Offering
Maturity net i n t e r - y i e l d
of
dollars)
e s t cost 1

Rating

STATE AND LOCAL GOVERNMENT
(Continued)
>.emphis, Tennessee
G.O.
Denver, Colorado
Wtr.rev.
Public Housing Auth.
—
N.Y. S t a t e Thruway Auth.
G.R.
No. Hempstead S.D.No.9»N.Y.
G.O.
D e t r o i t , Michigan
G.O.
Nevj Orleans, La.
G.O.
Wichita S. D. No. 1 , Kan.
G.O.

12.5
20.0
67.1
50.0
7.4
13.7
.6.3
5.0

. 2.82
1959-88
1969-97/68
3.25
1959-98/67
2.89
1985-95/65
3.12
1958-86
3.72
2.98
1959-83
1959-87/731 3.25
1959-78
3.1h

1.50-3.70 Aa
2.65-3.2k Aa
1.45-3.10 Aaa
2.85-3.10 Aaa
1.60-3.75 Baa
1.65-3.15 A
1.80-3.35 A
1.80-3.30 A

• OTHER
None
n.a.—Not a v a i l a b l e .
1 / Includes corporate and other s e c u r i t y o f f e r i n g s of $15 m i l l i o n and over;
S t a t e and l o c a l government s e c u r i t y o f f e r i n g s of $5 m i l l i o n and over.
2 / Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s .
3 / In the case of State and l o c a l government s e c u r i t i e s , G.O. denotes general
o b l i g a t i o n s ; Rev., revenue bonds; G.R., general o b l i g a t i o n s a d d i t i o n a l l y secured by
f a c i l i t i e s revenues; L . L . , l i m i t e d l i a b i l i t y o b l i g a t i o n s secured by pledge or d e s i g nated revenues.




H.lli

Exhibit F
Forthcoming Large Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
Corporate S t a t e and. Other 2 /
l o c a l govt.

Date of
computation
Dec. 31
Jan. 31
Feb. 28
Mar. 29
Apr. 30
May 31
June 28
July 31
Aug. 30
Sept. 30
Oct. 31
Nov. 29
Dec. 31

476
591
740
461
. 187
52$
370
526
578
576
458
383
378

.

280
153
153
290
179
97
172
252
243
370
369
387
383

.

100
35
25
25
25
30
30
18
150

Subsequent t o
date shown
Corporate^
796
966
795
486
258
5#
415
811
845
647
815
1,193
1,161

,

a

763
648
631
862
396
388
498
514
439 587
573
589
614

g

^ |Other 2 /
100
35
25
25
25
30
15
45
63
165

Forthcoming Large O f f e r i n g s , as of February 7
Issuer

Type

Amount
(millions Approximate date
of o f f e r i n g .
of d o l l a r s )

CORPORATE
Royal Dutch Petroleum Cb.

Common s t k .

100.0

Northern Natural Gas Co.

Common s t k .

21.8

Pfd. s t k .
Southern C a lifo rn ia Edison Co.
25.0
1 s t mtg. bds.
Indiana & Michigan E l e c t r i c Co.
25.0
Pfd. s t k .
^Niagara Mohawk Power Co.
25.0
Deb.
General Motors Acceptance Corp.
150.0
1 s t mtg. bds.
New York S t a t e E l e c t r i c & Gas Co.
25.0
1 s t mtg. bds.
29.0
Pennsylvania E l e c t r i c Co.
1st mtg. bds.
Cleveland E l e c t r i c Illuminating Co.30.0
Central I l l i n o i s Public Service Co.
1 s t mfcg. bds.
15.0
United Gas Corp.
1st mtg.&coll.tr.bdsJO.O
Deb.
^Southern New England Telephone Co.
30.0
Pfd. s t k .
^Potomac E l e c t r i c Co.
15.0




Feb. 10
( r i g h t s expire)
Feb. 11
( r i g h t s expire)
Feb. 11
Feb. 14
Feb. 18
Feb. 19
Feb. 21
Feb. 25
Feb. 26
Feb. 26
Feb. 27
Feb. 27
Feb. 28

H.lU

F-2

Forthcoming Large O f f e r i n g s , as of February 7 (Cont'd)
Issuer

Type

Amount
Approximate date
' (millions
of o f f e r i n g
of d o l l a r s )

CORPORATE (Continued)
/"•Baltimore Gas & E l e c t r i c Co.
O h i o Edison Co.
Public Service E l e c t r i c & Gas Co.
Union E l e c t r i c Co.
-"-Columbia Gas System, I n c .
American Telephone & Telegraph Co.
Chicago, Rock I s l a n d & P a c i f i c R.R.
Commerce Oil Refining Corp.
Natural Gas P i p e l i n e Co. of. America

lst&ref.mtg.bds.
1 s t mtg. bds.
. Pfd. s t k .
1 s t mtg. bds.
Deb.
Conv. deb.

30.0
. ko.o
25.0
35.0
30.0
718.3

1 s t mtg. bds.
Deb. -,-bds. &common
t
1 s t mtg. bds.

16.0
16.0
ko.o

Mar,. h
Mar,, 5
Mar.. 5
Mar., 6
Mar., 7
Mar., 12
( r i g h t s expire)
Mar. 13
Winter
Winter
.

STATE AND LOCAL GOVERNMENT
S t a t e of Minnesota
- G.O.
H a r t f o r d , Connecticut
G.O.
Met.-Water D i s t . of Southern C a l i f .
Rev.
Guilford Co., North Carolina
G.O.
Hempstead U. F. S. D., N. Y.
G.O.
Kansas City Sch. D i s t . , Mo. ___
__
G.O.
• Long Beach, C a l i f o r n i a
G.O.
S t a t e of Connecticut
G.O.
S t a t e of Alabama
G.O.
-x-State of . Rhode Island
' G.O.
--St. Louis, Missouri
G.O.
*Ltis Angeles Met. T r a n s i t A u t h . , C a l i f
Rev.
-::-State of Delaware
G.O.
>-New York, New York
G.O.
Cleveland, Ohio
G.O.
S t a t e of Kentucky
G.O.
Houston Ihd. Sch. D i s t . , Texas
G.O. '
-^Washington Tp. Local Sch. Dist.,Ohio
C-.O.
-^-Louisiana S t a t e Univ.
Bldg. r e v . •
e s t a t e of M i s s i s s i p p i
G.O.
Milwaukee, Wisconsin
vvtr. rev.
-x-State of Louisiana
C-.O.
Pennsylvania Turnpike Commission
Rev.
Inter-American* Center A u t h o r i t y , F l a .
Rev.
Met. F a i r & Exposition Auth., 111.
' Bldg. r e v .

12.0
6.9
18.0
6.0
5.1* •
- 7.0
10.1
35.0
21,0
18.8
12.3
liO.O
21.0 ' .

a.5

15.3
35.0
. 15.0
5.0
7.5
20.0
' 10.0
• 8.1
62.0
20.0
25.0

Feb. 11
Feb. 11 .
Feb. 11
Feb. 11
Feb. 13
Feb. 17
Feb. 18
Feb. 18
Feb. 19
Feb. 19
Feb. 19
Feb. 19
Feb. 20
Feb. 25
Feb. 25
Feb. 25
Feb. 26
Feb. 27
Mar. 1
Mar. 6
Mar. 18
Mar. 26
winter
Winter
winter

OTHER
-^Amsterdam, The Netherlands




S.F. bds.

15.0

Feb. 26

H.lii

F-3

-*—Included i n t a b l e f o r f i r s t time.
1 / Includes corporate and other i s s u e s of #15 m i l l i o n and over j S t a t e and
l o c a l government i s s u e s of
m i l l i o n and over.
2 / Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction •
and Development i s s u e s .
Note.—Deletions f o r reasons o t h e r than s a l e of i s s u e : None.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102