Evening star., 1923-09-15
BOND PRICES FIRM
IN FOREIGN GROUP
Liberty 3 1-2s Make New
Low for Year-Cuban Bonds
Rally in Trading Today.
BY GEORGE It. HUGHES.

opeclal dispatch 10 Inc SthT.
NEW YORK, September 15.-To-
days bond market presented no char
acteristic markedly difficult from the
entire week There was the same
evidence of belief in slightly higher
charges for money in the dealings in
the high-grade investment class and
there was the same show of strength
in the foreign group which has been
so noteworthy a feature of the market
all through the recurring crises
abroad.
Liberty 31zs Again Decline.
The demand of investors for a
higher return on their funds showed
itself in the decline I'm the Liberty
3hs,. which today made another new
low record for the year. The same
tendency was evident in the municipal
bond market, where the dealings are
entirely over the counter" New Of
ferings. both of state and city issues,
have conformed in price to this de-
mand.
The range this week has been from
about Az per cent on Minneapolis OBJ
legations to 81 per cent on North
Carolina notes. This represents a
concession to the views of the invest
ors from the rate prevailing a few
months ago. Significant was the Of
fering at lower prices of unsold por-
tions of the soldier bonus bonds put
out by middle western states. To a
less extent there has been the same
shading of quotations for the high
grade legal" rails.
Foreign List Is Feature.
In the foreign list French bonds
have attracted the most attention
Steadiness in these issues has con-
tinued all through the weakness In
both the speculative and the invest
ment classes of domestic securities
The strength in the French SIS and
the French 712s is partly explained
by the operation of the sinking fund,
which has retired about 91a per cent
of the original issue in the case of the
IS and an even larger proportion in
the case of the 71zs. Buying OF
French cities issues and such French
mean, however, cannot be ascribed TO
any such influence. The improve
ment ranges from 2 to 3 points. r.
What this represents must be con-
fidence not only in the eventual so
luton of the reparations problem, but
In the financial stability of France.
The principal effect of the critical
situation in southeastern Europe was
shown in the Jugoslav SIS, which are
especially sensitive and which lost
ground slightly on the week
German Loan Possibilities.
On the other hand. the CzechosIovak
and the City of Greater Prague bonds
were practically unchanged There
has been discussion of the possibility
of an international loan to Germany
along the lines of the Austrian issue
under the auspices of the league of
nations or guaranteed by the several
allied powers. Such loan may come
but not for a long time. Germany
must first demonstrate ability TO ball
ance her budget and the amount of
reparatiops she must pay must be
definitely and finally fixed.
Cuban Bonds Rally.
AS to the speculative and second
grade domestic bonds, the rule has
been that they moved more or less in
sympathy, with stocks. When the
stock market broke so sharply In
midweek speculative bonds did the
same, but to a less degree There was
less excuse for the movement in the
case of the bonds than in that of the
stocks. Another notable incident OF
the week was the drop of points in
the Cuban 51ss. which, however, had
no relation to general market condi-
tions. Incidentally, these bonds ral-
lied substantially today.