Evening star., 1923-10-13
PRICES HARDENING
IN BOND MARKET
U. S. Government 0bIiga-
tions Have Recovered From
Recent Heavy Selling.
BY GEORGE II. HUGHES.

Special Dispatch to The Star.
NEW YORK, October 13.-The
trend Of today's bond market. like
that of the entire week, was toward
a hardening in the quotations for the
high grade securities. Practically all
the United States government loans
have recovered from the effects of
the selling of a week ago and ap-
pear to be headed toward slightly
higher levels. To less degree the
high grade rails and industrials
shared this improvement, although
they are now selling on such low
yield basis as to offer little attraction
TO the individual investor.
More Cheerful Feeling.
Aside from this better demand for
bonds in the gilt-edge class the most
significant thing about the market is
the more cheerful feeling among in
vestment bankers brought about by
the better absorption of new issues.
For the week these totaled S42,744,-
600. Railroad offerings. including the
Great Northern equipment certifi-
Gates and the Kansas City terminal
notes, accounted for more than SlS,-
municipal offerings were next in
volume and then came the Republic
of Salvador s per cent issue, the
single foreign offering.
The railroad issues went very well.
The success of the Central American
issue was more notable coming into
competition as it does with other for
eign bonds giving a higher yield. The
Salvador bonds We're sold on a $50
per cent basis. The Bordeaux, Mar
seille and Lyons 6s are selling to re-
turn more than 9 per cent.
hnS Il &c civ
Brazil SIS give S12 per cent and Brazil
rs, the central railway electritication
loan, yield more than 9. Bolivia IS
also sell on better than per cent
basis.
Railroad Bonds Hold Well.
Coming to the speculative railroad
bonds the list was held very well
considering the damper put upon SEN
timent by the failure of the Southern
railway directors to act on a dividend
on the common stock. The Inference
was that the railroad outlook was
still far from certain Notwithstanding
present good earnings. Southern rail-
way bonds themselves were unaifect-
ed as even the junior issues are en-
titled to a good investment rating.
The advance in the Seaboard issues.
however, was checked, but without
substantial reaction. Speculation here
centers in the adjustment 6S on the
theory tnat a payment OH aCcoUht VI
back interest will be made on Febru-
ary 1 next. Interest on this issue is
not a fixed charge. AT the present
rate Of earnings, however, 1t is hard
to see how the directors can avoid
making some disbursement.
II. 4 o. Issues Are Firm.
Baltimore and Ohio issues were firm
around recent highs. but showed little
inclination to advance. chicago and
Alton 312s were well sustained, but
the Missouri Pacific and the st. Paul
issues continued heavy.
Industrial bonds showed the effect
of the same influences that have ruled
in the stock market. This was nota-
bly, the case with the copper issues
although losses were only small frac-
tions. Some of the rubber and tire
obligations have also suffered. The
middle grade utilities, selling 10
yield around to 61a per cent, have
been reasonably steady. Examples
are Philadelphia Company 6s and
Hudson and Manhattan refundinG 5s.