The sun., 1919-11-03
CENTRAL AMERICAN
SECURITIES ACTIVE
Better Situation in REPUBLICS
Gives Strength to BoAds
80 in This Country.

\ A great deal of interest has of late
been taken in the securities OF Central
( American republics according to the
/ Information compiled by the foreign de-
partment Of the National City Company.
from the foreign press and official publ
cations. mostly through TRANSACTIONS
Within the last few days Honduras
bonds have been decidedly active and
strong. the price having risen from IL
to 1z1a. This movement has been due
TO q revival Of rurnors that a settlement
iof~the debt, which has been in default
for nearly fifty years. is shortly to be
effected.
Expectations are based on the fact
that. as a result Of the latest political
disturbances, new president who is
understood to be favorably regarded by
the United States, has been installed,
and that he will make efforts to arrange
the debt. One idea is that concessions
will be granted to Americans. and that
these will be paid for in Honduras
bonds, which would mean that the con-
lcessionaires would have to make pro-
,posals TO the bondholders for acquiring
ftheir bonds. So far. however, no new
,scheme has yet been proposed TO the
.ibondholders' representatives.
4 Attention has also lately been paid
TO Guatemala deferred certificates. which
were issued for interest arrears at the
time that the service of the Guatemala
debt was resumed in 1913. Beyond the
Fact that representations have been made
to Guatemala to the effect that 1t is
high time these arrears certificates were
dealt with, however. nothing has tran
spired.
As regards Nicaragua a decidedly sat
isfactory position is shown. The finances
tof that republic are now under the su-
pervision OF n high commission consti-
tuted under the financial reorganization
arrangement OF 1917. and substantial
surpluses, above the S1.400, 900 gold per
annum set down as the amount to be
allowed for Government expenses, have
fbeen realized. Under the 1917 agree
ment the half yearly coupons on the ex-
tternal loan for 1917, 1918 and 1919 were
20 be paid partly in cash and partly in
funding certificates, the funding certifi-
Gates TO bear per cent. interest and to
be redeemed within a period not exceed
ing nve years from the date OF the cou-
pons In respect Of which they are Is
sued. These funding certificates ara TO
De redeemed by the application of IS per
cent or the surplus revenue after pro-
yiding for the amount allowed for Gov
Nnment expenses, and for 1918 this Ok
per cent. amounted to f2s, 800 and was
applied TO redeeming all the funding
'oertihcates issued In respect of the Janu-
ary' lsl7. coupon and 20 per cent. OF the
July. 1917. coupon.
\ There has now been received a fur
ther sum OF $4,000, being the Ok nsr
cent OF the surplus for the first hs,y %,
1918: and this will be sufficient to nav
on the funding certificates up to and IN,
Guiding those issued in respect OF the
January. 1918, coupon. Half ~ ths
FUNDING certificates issued. therefore. will
nave been redeemed far ahead OF their
que date and 1t is hoped that the re.
nasn WIN De paid on by the end OF
1870 As result OF this the nrics -,
the FUNDING certificates has risen 10 o.
~ quotation for Nicaraguan Der cent