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

Special Dispatch to The Star.
NEW YORK, October 1S.-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 a less degree the
high-grade rails and industrials
shared this improvement, although
they are now selling on such a 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
600. Railroad offerings, including the
Great Northern equipment certih-
Gates and the Kansas City terminal
notes, accounted for more than SlS,-
100000 of this amount. State and
municipal offerings We're next in
volume and then came the Republic
of Salvador s per cent issue, the
single foreign offering.
The railroad issues went very we'll
The success of the Central American
competition as it does with other for
eign bonds giving a higher yield. The
Salvador bonds were sold on $40
per cent basis. The Bordeaux, Mar
seille and Lyons IS are selling to re-
turn more than 9 per cent.
CZachnglnVa cent
Brazil IS give 81 per cent and Brazil
Is, the central railway electriffcation
loan, yield more than 9. Bolivia SIS
also sell on a 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 unanect-
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 on Account VI
back interest will be made on Febru-
ary l 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. & o. Issues Are Firm.
Baltimore and Ohio issues were firm
around recent highs, but showed little
inclination to advance. Chicago and
Alton 3hs were we'll 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 to
yield around 6 to 6h per cent, have
been reasonably steady. Examples
are Philadelphia Company SIS and
Hudson and Manhattan refunding 5s.