Evening star., 1923-10-20
DISTINCT STRENGTH.
NOTED IN BONDS.
Investment Securities Are
Feature of Today's Brief
TWo-Hour Trading.
Special Dispatch to The Star

special Dispatch to The Star
NEW YORK, October 2O.-Distinct
strength in investment securities was
the feature of today's bond market,
with activity unusual in this grade
OF security for Saturday. Instances
are Union Pacific first As, u. S. Steel
sinking fund 5s. New York Central
5s' American Telephone and Tele-
graph collateral trust SIS, General
Electric SIS. Atchison general 4s and
Indiana Steel SIS.
, While the market has been firm all
the week, the movement was not as
UNIFORM as today. Doubtless accum-
uiating evidence of ease in money
rates was the controlling influence.
lime lime money is now at the lowest
per cent, compared with 5I9 To 5A
per cent month ago.
Lower Discount Rate Hinted.
There has even been talk in Wall
street of the possibility of a lower
rediscount rate in view of the re-
markably strong position of the
banks. That there will be banking and
institutional buying of securities soon
seems reasonable supposition
Taken together with the good alb
sorption of new offerings this evil
dence of interest in high-grade Sc
curitleS was very encouraging to the
investment bankers. The weeks out
put or new bonds was the largest in
four months except one week in
which 100000, 900 of Treasury notes
were sold. The exact figures for this
week are $99,064 900 which includes
$47.oO0,000 in federal land bank farm
loan bonds. The latter offered at par
to yield ~ per cent and entirely tax
exempt were quickly sold. The ILL.,
nois highway and bonus bonds. in
amounts of s6.o00.000 and $4,000, 900
respectively and offered at prices to
yield from AS to 4.6O per cent, were
also well taken. fairly good evidence
new offerings of state and municipal
bonds had achieved its purpose.
Unusual Stability Noted.
Up to today the weeks market for
foreign bonds showed remarkable
stability. Net changes up to last
night for French IS and French 7h s
were only one-eighth of a point from
day more sensitiveness to the news
was shown. but the reaction was not
excessive. Nor was there any pro-
nounced corresponding movement in
other foreign securities.
Among the more speculative do
mestics ire gularity was the rule to-
day. as has been the case all the
week. Bonds of corporations, the
outlook for which was believed to be
improving. such as International Mer-
camille Marine 6s. advanced sharply.
while the rubber and tire bonds. such
as Ajax Rubber IS and even United
States Rubber 5s. not speculative
but an investment issue, were weak
to heavy. In the case of securities
like these the bond market SYM
pathizes more or less with the stock
market.
Other reactionary issues included
Public Service of New Jersey 5s and
Third Avenue refunding 4s and Ad-
justment 5s, while Chicago Railway
5s were up. all this on the week.
These separate movements could be
ascribed only to a varying opinion
as to the industries involved.
The same general condition pre-
vailed in the market for railway bonds.
Northern Pacific issues were heavy.
and Chesapeake and Ohio bonds were
firm. In the one case there is un-
certainty as to present earning power
and in the other the outlook Is very
favorable. There was no important
change in the securities OF roads
such as the Erie, Seaboard and the New
Haven.