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.

SPrSiaA OIspulcn Inc star.
NEW YORK, October 20-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 Is, u. S. Steel
sinking fund 5s, New York Central
5s. American Telephone and Tele-
graph collateral trust 5s, General
Electric 5s. Atchison general As and
Indiana Steel SIS.
=, While the market has been firm all
the week, the movement was not as
UNIFORM as today. Doubtless accum-
ulating evidence of case in money
Time money is now at the lowest
since June, quotations being to 5K
per cent, compared with 5I5 to So
per cent a 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-
banks. That there will be banking and
institutional buying of securities soon
seems reasonable supposition.
Taken together with the good abb
sorption of new offerings this evil
dence of interest in high-grade Sc
investment bankers. The weeks out
put of new bonds was the largest in
four months except one week in
which $200,000,000 of Treasury notes
were sold. The exact figures for this
week are $99,064, 900 which includes
$4,000, 900 in federal land bank farm
loan bonds. The latter offered at par
to yield Az per cent and entirely tax
exempt were quickly sold. The IIli-
nois highway and bonus bonds. in
amounts of s6,000.000 and $15,0O0,0 900
respectively and offered at prices to
yield from AS to 46O per cent. were
also well taken. fanrfy good evidence
that the recent price readjuStment on
new offerings of state and municipal
bonds had achieved its purpose.
UnusunI Stability Noted.
Up to today the weeks market for
foreign bonds showed remarkable le
stability. Net changes up to last
night for French IS and French 74 $
were only one eighth of a point from
prices prevailing a week ago. To-
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 irregularity 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 SIS and even United
States Rubber 5s. not a 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 As and Ad-
justment SIS. while Chicago Railway
SIS 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.