Evening star., 1923-06-30
STOCKSST|LLk KEEP
BOND PRICES WEAK
Today's TWo-Hour Session
Sees But Few Changes.
Austrian Loan Firm.
BY GEORGE r.. HUGHES.

Special Dispatch to The Star.
NEW YORK, June 3o.-The bond
market during the two hours of
trading today presented much the
same characteristics which have, been
evident the last half of the week.
High-grade securities were steady.
but not very active, and speculative
rails fiuctuated in sympathy with
stocks. There was not much change
among the foreign issues, the new
Austrian loan was firm after the
weakness shown on Wednesday and
the Mexican bonds held the gains
recorded when it was announced that
the deposit of bonds would be called
for as of July 8.
Stocks Weaken Bonds.
The market for the entire week has
been under the spell of the specu-
lative mood. No attention has been
paid to earnings and very little to
the outlook for money rates. For
the most part the tendency has been
toward lower levels, rejecting the
uncertainty which found it's origin
in the sharp decline in stocks. There
also has been some selling by spec
ulators who needed money to replen-
ish imperiled margin accounts and
by others, especially evident in rail-
road bonds, who were informed by
the same fears that brought about
the selling of railroad stocks.
The result is that second-grade and
emi-speculative railroad bonds of the
type of st. Louis and San Francisco
adjustment 6s. Erie prior lien as and
Baltimore and Ohio convertible 4Ls
were selling at the end of the week
on yield basis entirely out of line
with the financial improvement of the
railroads In general and of these
roads In particular. The Baltimore
and Ohio issue, for instance. is SELL
ing on a 71s per cent basis. notwith-
standing that the road reported net
income for the first six months of the
year, June partly estimated. equiva-
lent to an annual rate Of ZIG per cent
for the common stock.
Foreign bonds have suffered In the
same way. 1t is true that the foreign
situation. especially the outlook for an
early settlement between France and
Germany, is no better. but it is very
doubtful If these things Influenced the
decline in the quotations for foreign
issues dealt in on this market. 1t
was rather the spreading of specu-
lative timidity. The outstanding ex-
ception was the new Austrian Is.
New Issues Total SS2,OOO.OOO.
In the mid week United States gov
were SUBJECT TO
selling pressure, and the tax exempt
g. IS made a lew low for the year,
but this tendency was reversed yes
terday anu today, and at the same
time there was a noticeable firmness
in the very high-g grade rails and in
dustrials.
The weeks new issues reached a
total of sS2.165.000. with S45.000. 900
in federal land bank 4lhs the most
important offering. 1t is not a lit
tie surprising that these bonds, en-
tirely tax exempt as they are, are
not eagerly accumulated by invest
ors to whom tax exemption is a mat
ter of prime Importance. The re-
turn is certainly higher than that
given by first grade municipals. In
public utility financing the largest
issue was the Consumers Power SIS
of 1852. offered on a 5.75 per cent
basis Foreign financing was repre-
sented by So 900 900 offering of per
cent bonds of the state Of Ceara,
Brazil, to yield sos per cent.