Evening star., 1923-12-08
MEXICAN BONDS
IN SHARP DROP
Eries Again Hold Center Of
Rail lnterest-Liberty Is
sues Unchanged.
BY GEORGE r. HUGHES.

Special Dispatch to The Star
NEW YORK. December S.-The bond
market Of today maintained the gen.
orally firm tone which has charac-
terfzed all the week. Interest, how
ever. was concentrated almost exclu-
sively on either the more speculative
issues or certain of the new offerings,
distribution of which has not been
completed.
The new American Telephone and
Telegraph debenture 5hs, syndicate
support of which was withdrawn Fri
day, held at 98 or above, as against
the issue price of 9S12, a noteworthy
achievement for an issue amounting
to S100,000,000. There was also q
good market for the St Paul Union
Depot 5s, but the new Pan-American
Petroleum 6 las lost ground, perhaps
in sympathy with the reaction in the
stock
The favorable reception accorded
the better new offerings and the sub
sequent course of the same has great
ily encouraged investment bankers
and the outlook at the week end is
regarded as bright.
Further Buying I'm Eries.
In the speculative group the low
priced rails and the fractions held
the center of the stage. Theras was
further buying of Erie bonds all OF
| which are up from one to two points
on the week. The advance in Erie
: obligations has been very steady and
the reaction very slight. 1t was not
alone the general As and the three
series OF convertible As which found
speculative favor. but the prior lien
As, which more nearly approached an
| investment status. We're also eagerly
bought.
In the bond market the explanation
OF the rise in Erie securities is not
that generally given by those inter
ested in the stock, namely. some
change of control.
Bond traders insist that the adj
vance in simply recognition of an
improved financial position of the
road. While Erie obligations have
been the most prominent, other spec
ulative rails have had their inn
provement also. This is notably the
case with Missouri Pacific. Wheeling
and Lake Erie. the international
Great Northern and the Denver and
Rio Grande and the Chicago and
Alton. In tho case of the New Haven
the consolidated 6s sold at 81
again today. up nearly four points
on the week.
Status of fractions.
Among the fractions the Inter
borough bonds and notes have been
the leaders. The refunding 5s had
the greatest gain. about three points
Curiously enough. Brooklyn Manhat-
tan transit IS were practically I'M
changed, although one of the most
active bonds on the entire list This
is all the more difficult to explain
in view of the very favorable earn
! ing statements.
A small gain has been recorded for
Hudson and Manhattan refund.ng SIS
The weak member OF this group has
been Chicago Railways 5s made q
new low record for the year this
week
Industrial issues have been irreg-
ular. Wickwire Spencer steel Is haG
q sensational decrease on unfavorable
reports about the Companys affairs
Central Leather SIS continued heavy
Second grade bonds were neglected
except for Il few OF the public utili-
ties High grade Investment issues
I both rails and industrials and United
States government loans were steady
F. but with little change In price.
Mexican Issues Break.
| Steadiness was also the feature il
! the foreign bonds except for Mexican
issues. Here there was a sharp break
! disturbances. part of the loss being
! later regained. French, Belgian anC
most Of the mid European bonds ap-
} further developments on the other
| side.
! The weeks new issues totaled $685..
! ing formed almost half.