New Paper for Old

The nation's investment bankers set a number of records last week swapping new pieces of paper for old. In the busiest underwriting week since 1929, bondmen offered $378 million of corporate and municipal bonds to an easy-money market that gulped the flotations and bid for more.

Two of the largest corporate offerings ever made hiked the week's business to its record-breaking activity: 1) $180 million worth of Commonwealth Edison Co. and 2) $130 million of Philadelphia Electric Co. bonds. Like most big issues since 1934--when the easy-money era began-- these two utility issues were for refunding purposes.

But this week investment bankers will have the kind of new issue they like. Morgan, Stanley & Co. are heading a syndicate offering $100 million of American Tobacco debentures. The company will use most of the new money to build up its depleted tobacco inventory.

The American Tobacco deal will climax two months of day & night work for investment bankers. They timed the bulk of their financing to fall between the Fifth War Loan in July and the Sixth War Loan drive in November. Since the first of the year, bondmen have marketed more than $2 billion of corporates and municipals--the largest total since 1940.

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