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Not f o r P u b l i c a t i o n

DECONTROLLED AFTER SIX M U H
OTS

H.lU

November 7> 1957
CAPITAL MARKET DEVELOPMENTS

Large public s e c u r i t y o f f e r i n g s were l a r g e l a s t week,
p a r t i c u l a r l y f o r corporate s e c u r i t i e s . During the week' ending
November 1 , corporate i s s u e s including 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 t o t a l e d $285 m i l l i o n and S t a t e and l o c a l government o f f e r ings amounted t o £?5 m i l l i o n . The $250 m i l l i o n AT&T i s s u e o f f e r e d
l a s t week met with a poor market r e c e p t i o n and.according t o p r e s s
r e p o r t s was only o n e - t h i r d sold a t t h e middle of t h i s week. The
calendar f o r t h i s week includes corporate o f f e r i n g s with aggregate
proceeds of .*122 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 ?91 m i l l i o n .
Bond y i e l d s - Yields on outstanding corporate and S t a t e
and l o c a l government bonds increased l a s t week, while y i e l d s on
U. S . Government (new s e r i e s ) o b l i g a t i o n s remained the same and
those on the old s e r i e s bonds declined s l i g h t l y .
Yields on new corporate i s s u e s have increased f u r t h e r
r e c e n t l y . An Aa-rated 30-year, f i r s t mortgage bond i s s u e was
o f f e r e d t o the p u b l i c t h i s week t o y i e l d U.97 per cent — 19
b a s i s p o i n t s above t h a t f o r t h e l a s t comparable i s s u e , an o f f e r ing made i n e a r l y October. A s i m i l a r A-rated u t i l i t y i s s u e was
also o f f e r e d to i n v e s t o r s t h i s week t o y i e l d 5.50 p e r cent —
20 b a s i s p o i n t s above t h e y i e l d f o r a comparable o f f e r i n g made
two,weeks ago.
«
Stock p r i c e s - Stock p r i c e s as measured by t h e Standard
and Poor 1 s index of 500 common s t o c k s , declined s l i g h t l y l a s t week,
closing a t LO.Wi on November*1. P r i c e s shewed l i t t l e change on
balance t h i s week, closing a t k0.b3 on Wednesday.
More d e t a i l e d information concerning r e c e n t c a p i t a l
market developments i s presented i n the attached e x h i b i t s .

Business Finance and 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

H I G H - G R A D E B O N D YIELDS

\ U.S. GOVERNMENT:/•
V
long-l.im
'/

V A

U. S. G o v t . , l o n e - t e r m £ f
Corporate
Aaa 1 /

Old s e r i e s

New s e r i e s

Spread between
U. S. Govt.
(old series) and

State and
local govt.
Aaa y

(Per cent)
3.12
2.99
3.09
2.85
3.17
2.91
3.79

(6/19)
(1/9)
(1/6)
(1/23)
(12/23)
(1/7)
(12/28)

3.15
2.78
2.71
2.Itlt
2.9k
2.62
3.U9
2.80

(6/6)
(12/26)
(1/9)
(8/7)
(8/5)
(1/7)
(12/21)
(2/17)

fcffiS®)
3.66 (L/12) 3:S8Sfi a >
1.12

r/3.67

L.12

r/3.70
3.69

n.a.
2.73
n.a.
1.98
n.a.
2.21
n.a.
1.90
3 . 0 3 ( 8 / 5 ) 2.3k
2.89 (6/10) 2.05
3.39 (12/28)3.05
2.92 (2/3) 2.17
3.66 (10/18)3.15
3.22 ( 2 / 8 )
2.76

L.09
1.07
1.11

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

11

3.61i
3.614

(6/25)
(1/8)
(6/10)
(9/2)
(9/8)
(5/26)
(12/27)
(2/23)
(8/29)
(2/21)

.13

M

.13
.5U
.25

3.38
3.29

1%

3.30

.61
.29

'.3h

1

.32
.19

•Hi

r/.29
r/.35

I

~ .39

Average t e r m of bonds i n c l u d e d i s 25-26

2 / Weekly a v e r a g e s of d a i l y f i g u r e s . The o l d s e r i e s i n c l u d e s f u l l y t a x a b l e ,
m a r k e t a b l e 2 1 / 2 p e r c e n t bonds due o r f i r s t c a l l a b l e a f t e r 12 y e a r s through
September 1955, and t h o s e due o r c a l l a b l e i n 10-12 y e a r s t h e r e a f t e r j t h e a v e r a g e
term t o f i r s t c a l l of t h e bonds i n c l u d e d d e c l i n e d f r o m 1U y e a r s i n e a r l y 1953 t o
1 1 1 / 2 y e a r s i n e a r l y 1956. The new s e r i e s i s comprised of t h e 3 p e r c e n t bond
of 1995 and t h e 3 1 / L p e r c e n t bond of 1978-83.
2 / Thursday f i g u r e s . Only g e n e r a l o b l i g a t i o n bonds a r e i n c l u d e d ; a v e r a g e
- term i s 20 y e a r s .
~
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 d a t e s
for different series.
r/--Revised.




EXHIBIT B

L O W E R - G R A D E BOND YIELDS

Bate

Corporate
Baa 1 /

State and
local govt.
• Baa 2 /

State and
local govt,
rev. y

(Per cent)
1953 - High
Low'
195k - High
1955 - High
1956 - High

3.89
3.50

3.7b
3.UU
3.63

(9/18)
(1/2)
.
(1/8) ,
(12/31)
(12/30)

3.15 (1/llt) .
It. U
3.58

(12/28)
(3/9)

3.79
2.96
3.32
2.93
3.26
3.02.
li.22
3.20
L.51
3.90

1957 - High
Low

5.0k (11/1) .
I i . k 2 (h/12)

October U
October 11
October 18
October 25
November 1

L.97
h.96
1.98
5.01

3 . 2 7 (6/26)
2.71 (1/2)
. .
3.00 (1/1)
2.72 (8/13)
2.99 ( 1 2 / 3 0 )
2.76 (1/7)
3.98 (12/28)

2.89 (2/2L)

L.36
1.33

5.Olt

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
(12/27)
(3/6)
(8/29)
(2/21)

U.37

h.U6

3.98
3.70

UA)

(2/22)

y

L.36

1/ Weekly average of daily figures. Average terra of bonds
included is 25-26 years.
2/ Thursday figures. Only general obligation bonds are included j average term is 20 years.
3/ Friday figures. Average rating of bonds included is
between Baa and A; average term is 20 years.
hj Series discontinued, as of March 15.
Note.—Highs and lows are for individual series and may
be on different dates for different series.




EXHIBIT C
STOCK

MARKET

STOCK MARKET CREDIT

Date

Stock price
index 1/

Common
Trading .
volume 2/
(millions yields y
of shares) (per cent)

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

26.5k
22.95
35.98
2k.93
15.89
35.28
k9-6k
i*3-22
19.08
10.33

September
October 18
October 25
November 1

(1/2)
(9/18)
(12/31)
(1/8)
(12/9)
(1/11,)
(8/3)
(1/20)
(7/12)
(10/18)

L5.8U
13.98
10.33
10.59
kO.kk

.

Stock market custcsmer credit
Customers1
debit bal- loans to
"others" £ /
(Millions of dollars)

2.5
0.9
3.7
l.k
k.6
1.5
3.1
1.5
k.2
l.k

6.25
5.38
5-32
14.32
k.k2
3.6k
k.35
3.82
1.69
3.91

2,155
2,055
3.L36
2,1*05
It,030
3,537
1«,01.7
3,91k
U,031
3,832

1.9
1.8
2.6
k.2
2.0

k.15
U.31i
1.69
L.6?
1.68

3,929
3,682
n.a. '

1,665
1,31k
2,388 .
1,653
2,805
2,517
2,823
2,7kO
2,887
1,713

780
66k
l,0k8
7k6
l,2kl
1,018
1,267
1,155
1,163
1,080 ,

2,833
2,789

1,096
1,093
1,08k
1,080

, available.
1 / Standard and Poor's composite index of 500 common stocks, weekly closing
prices, 19kl-k3"10. Monthly data are averages of daily f i g u r e s r a t h e r than of
Fridays 1 only, highs and lows are f o r Friday's data only.
2/ Averages of daily trading volume on the New York Stock Exchange.
2 / Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal'Reserve.
k/ End of month figures f o r member firms of the New York Stock Exchange which
carry margin accounts; excludes balances secured by U.S. Government obligations.
y Wednesday f i g u r e s f o r weekly reporting member banks. Excludes loans f o r
purchasing or carrying U.S. Government s e c u r i t i e s a t banks in New York and
Chicago. Weekly reporting banks account f o r about 70 per cent of loans to others.
For f u r t h e r d e t a i l see Bulletin.
Note.—Highs and lows are f o r individual series and may be on d i f f e r e n t dates
for different series.




Exhibit D

H.l4

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

1957
January
February
March

1,063
1,071
1,344

573
712
817

April
May
June

924
771
1,489
S/1,075
e/900
e/1,000

July
August
September
October
November
December
&st
"nd
3rd
4th

quarter
quarter
quarter
quarter

1 s t half
Three quarters
Year

e/950
e/850
3,479
3,m
e/2,975
6,663
e/9,638

apital

Corporate
1 1956
I

1955 .

1957

235.
407
1,223

742
572
506

818
1,146
841

478
886
687
597
644
670

529
584
430

404
696
3.90

.

.

.

535
312
538

. 378
490
735

765
546
.395

1,063
654
838

S t a t e and l o c a l 1 /
1
1955
1 1956

427
350
642

.408
206
357

470
249
406

745,/
r,089^
1,088

1,162^
-6'32
900

672
e/550

6#
347
409

919
658
408

2,102
2,805:
2,556
2,922

2)165
2,052
1,911
2,695

1,820
1,706
1,543

1,490
1,603
971
1,395

1,385
1,418
1,124
1,984

4,216
6,127
8,821

3,526
5,056

3,093
4,064
5,459

2,802
3,927
5,911

4,907
7,463
10,384

Excluding f i n a n c e companies 4 /
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

3,268
2,924
y2,675

Year

1,647
2,541
2,246
2,826

1,727
.1,870
1,444
2,544

9,259

7,595

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 tryFederal Reserve; l a t e r data are from the Investment Bankers Association of America
and are somewhat more complete as t o coverage than the e a r l i e r data, p a r t i c u l a r l y
f o r Federal Government loans,
2 / Includes $637.2 million AT&T convertible debenture i s s u e .
3 / Includes $571*5 million AT&T common stock i s s u e .
h/
i/*- Total new c a p i t a l i s s u e s excluding o f f e r i n g s of sales and consumer finance
lompanies.
Note.—Details may not add to t o t a l s due to rounding.




Exhibit E

H.lU

Large Public S e c u r i t y I s s u e s f o r New C a p i t a l
(Other than U. S. Treasury) lb/- Proceeds of Large I s s u e s Offered
(Millions of d o l l a r s )

Corporate

Month

1956 - September
October
November
December
1957 - January
February
March
April
May
June
July
August
September

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

18k
383
135
201
386
306
19b
U99
2U8
176
265
357
185

558
386
701
1*30
567
671
788
177
329
877
525
526
537

Other 2 /

35
100
50

.

125
25
39
25
30

Large Individual Issues Offered October 1 through November 1

Issuer

Type 3 /

Coupon
Amount
Offering Ratir
( m i l l i o n s Maturity r a t e or
yield
net i n t e r of
e s t cost
dollars)

CORPORATE
Gulf S t a t e s U t i l i t i e s Co.
Southwestern Bell Tel. Co,
Northern Natural Gas Co.
Shamrock Oil & Gas Corp.
Columbia Gas System I n c .
Chem. Corn Exchange Bank
Commonwealth Edison Co.
Consolidated Edison Co.
Gen. Portland Cement Co*
Consumers Power Co.
American T e l . & T e l . Co.

1 s t mtg.bds.
17,0
100.0
Deb.
16.0
Pfd. stk,
Conv. sub.deb. 17.5
Deb.
25.0
Cap. s t k .
li8.U
. Pfd. stk,
25.0
Ist&ref .mtg .tds.60.0
Conv. sub.deb. 15.0
Conv. deb. 35.2
250.0
Deb.

€



. 1987
1992

h 7/8
h 3/h

U.78
li.70

Aa
Aaa

1982
1982

5 1A
5

5.25
5.00

Ba
A .

1987
1977
1972
1983

5
5
h 5/8
5

1.95
5.uo
It.63
U.90

Aa
Baa
Aa
Aa

H.lU

En

-

l a r g e I n d i v i d u a l I s s u e s Offered October 1 through November 1 (Cont*.d)
Issuer

Coupon
• Amount
(millions Maturity r a t e or
Offering Rating
net i n t e r - yield
of
dollars)
est cost

Type 3 /

STA.TE AND LOCAL GOVERNMENT
S t a t e of New York
S t a t e of Oregon
City & Co.of San Francisco
Calif.
S tate of Ohio
C i n c i n n a t i , Ohio
Chicago,Park D i s t . , 111.
Mecklenberg Co., N. C.
L.A. Dept. of fotr. & Pwr.,
Calif.
Dayton City S. Do, Ohio
San Diego U.S.D., C a l i f .
Commonwealth of Mass.
P i t t s b u r g h , Penna.
Mda S t a t e Roads Comm.
Boston, Massachusetts
Milwaukee, Wisconsin
S t a t e of C a l i f o r n i a
Univ. S y s t . Bldg.Auth. Qa.
S t a t e of Washington
State o f M i s s i s s i p p i
Broward Co. S p l . S. D. #1,
Fla.

G.O.
G.O.
G.O.
Hviy. r e v .
G.O.
G.O.
G.O.

-

1958-72
26.6 1960-7li/67

21.0

28.9

-31.0
5.3
6.0
5.0

1958-77

1958-72
1959-98
1959-77
1959-78

Rev.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.

- 18.0
1958-87
8.0
1959-78
10.0
1960-79
63.5
1958-77
6.6
1958-77
15.0 1958-72/65
16.0
1958-77
1958-77
5.5

G.O.

12.5 1959-76/66

Bds.

75.0

85.0 1959-81/73

6.0
52.0
10.0

1958-82

1958-72

1958-67

2.90

2.25-2.90
2.70-3.25

Aaa
Aa

3.13

2.10-3.20
2.20-3.30
2.10-3.30
2.60-3.50
2.60-3.U0

Aa
Aa
Aaa
A
A

3.51
3.56
3.13
3.66 •

2.50-3.55
2.50-3.15
2.80-3.60
2.50-3.U5
2.UO-3.30
2.60-3.15
2.50-3.60
2.30-3.20
2.70-3.65

Aa
Aa
A
Aa •
A
Aa
A
Aaa
Aa

L.00
3.18

2.50-3.13

2.75-3.90

A
Aa

U.13

3.00-U.05

A

it 3 A

U.75

Aa

3.21
3.32
3.20

3.15
3.37

3.52 '
3.22
. 3.53
3.U9
3.30

OTHER
I n t ' l Bk. f o r Rec. & Dev.

1980

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 offerings 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
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 S t a t e and l o c a l government s e c u r i t i e s , G. 0 . denotes general
o b l i g a t i o n ; 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 of
designated revenues.




H.ll*
|

Exhibit F
Forthcoming Large Public S e c u r i t y O f f e r i n g s For New C a p i t a l
(Other, than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
During month following
date shown
S t a t e and
Corporate
l o c a l govt. Other 2/

Date of ,
computation
1956 - Oct. 31
Nov. 30
Dec. 31
1957 * J s n , 31
*
Feb. 28
Mar. 29
Apr. 30
May 31
June 28
J u l y 31
Aug, 30
Sept,, 30
Oct. 31

#

683
1*36
1*76
591
71*0
ii6l
187
525
370
526
578
576
U58

.

.

162
1*8
280
153
• 153
290
179
97
172
252
21*3
. 37d
369

Subsequent t o
date shown
S t a t e and
Corporate l o c a l govt. Other £ /

23
100
35
25
25
25
3d
30

.

990
; 1*81
796
966
795
I186
258
525
hlS
811
81*5
61*7
815

955
979
763
61*8
631
862
396
388
1*98
5H*
1*39
587
573

23
100
35
25
25
25
30
15
U5

Forthcoming Large O f f e r i n g s , as of November 1
Issuer

Type

Amount
(millions
of d o l l a r s )

Approximate date
of o f f e r i n g

CORPORATE
Merrimack Essex E l e c t r i c Co.
Dayton Power & Light Co.
Southern New England T e l . Co.

1 s t mtg. bds.
1 s t mtg. bds.
Common s t k .

20.0
25.0
27.U

B e n e f i c i a l Finance Co.
Deb.
20.0
Transcontinental Gas Pipe Line Corp,
S.F. deb.
20 0.
C a t e r p i l l a r Tractor Coo
5.F. deb,
65,0
Texas Eastern Transmission Corp.
Pfd. stk.
20.0
Michigan Bell Telephone Co.
Deb.
1*0.0
Florida Power & Light Co.
Common s t k .
15.0
Idaho Power Co.
1 s t mtg. bds.
15.0
Ohio Power Co.
1 s t mtg. bds.
25.0
Houston Lighting & Power Co.
1 s t mtg. bds. .
1*0.0
•?K)lin Mathieson Chemical Corp.
Conv. sub. deb.
60.0
^Virginia E l e c t r i c & Power Co.
1 s t & r e f . mtg. bds. 20.0
^Commonwealth Oil Refining Co.
Conv. sub. deb.
20.0
£ Standard Oil Co.-of New J e r s e y
Common s t k .
250.0
Commercial C r e d i t Co.
National Cylinder Gas Co.




Notes
Conv. sub. deb.

50.0

17.5

Nov. 7
Nov. 7
Nov. 8
( r i g h t s expire)
Nov. 8
Nov, 13
Nov, ll*
Nov, ll*
Nov. 19
Nov. 20
Nov. 20
Nov, 20
Nov. 21
Nov. 21
Dec. 1* .
Dec. 11
- Dec. 18 '
( r i g h t s expire)
1957
1957

'

F-2

H.lb

Forthcoming Large O f f e r i n g s , as of November 1 (Cont'd)
j

Issuer

Type

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

STATE AND LOCAL GOVERNMENT
F a i r f a x County, V i r g i n i a
G.O.
5.5
Hamilton City Sch. D i s t . , Ohio
G.O.
5*5
J a c k s o n v i l l e , Florida
Utilities rev.
• 30.0
Port of New York Auth.
Rev.
30.0
Cook County, 111.
G.O.
20.7
S t a t e of Kentucky
G.O.
35.0
Los Angeles Co. Flood Control D i s t . ,
Calif.
20.0
Rev.
^-State of Maryland
G.O.
13.9
New York, New York
G.O,
36.5
S p r i n g f i e l d , Missouri
Water r e v .
22.0
Chicago, I l l i n o i s
water works r e v .
20.0
Lincoln Park Sch. D i s t . , Mich.
6.8
G.O.
New York S t a t e Thruway Auth.
Rev. .
50.0
S t a t e of Ohio
Thoroughfare r e v . 30.0
T e r r i t o r y of Hawaii
G.O.
7.0
Oklahoma Co., Okla.
6.0
G.O.
Washington Toll Bridge Auth.
Rev.
"30.5
Los Angeles Sch. D i s t s . , C a l i f .
G.O.
15.0
•^Greater Baton Rouge Port Commission,
Louisiana
Rev.
19 eU
Chicago Bd. of Education, 111.
G.O.
25.0
Penna. S t a t e Highway & Bridge Auth.
Rev.
20.0
S tate of Missouri ^
30.0
G.O.
S t a t e of Texas
G.O.
12.5
Pennsylvania Turnpike Commission
62.0
Rev.
Inter-American Center Authc, F l a .
Rev.
20.0

. Nov.
Nov.
Nov.
Nov.
Nov.
Nov.

6
7
7
7
7
12

Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
. Dec.

12
12
13
13
13
13
19
19
19
19
20
3

Dec. 11
Dec. 17
• J a n . 17
. Winter
Winter
Winter
Winter

OTHER

•^-Pacific Great .Eastern Ity. Co,Union of South A f r i c a

S, F . dob.
E x t . loan b d s .

30.0

15.0

Nov. 15
1957

*—Include-.1 i n t a b l e f o r f i r s t time.
1 / Includes corporate and o t h e r i s s u e s of ?15 m i l l i o n and overj S t a t e and
l o c a l government i s s u e 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
ai.j Development i s s u e s .
N o t e , - - D e l e t i o n s f o r reasons other 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