Evening star., 1924-07-12
BRAZILIAN BONDS
IN SHARP BREAK
Latest Revolution News,
Causes Heavy Selling.
Other Issues Steady,
BY GEORGE T.. HUGHES,

Special Dispatch to The Star.
NEW YORK, July 1.-THE feature
of the trading in bonds during the
days short session was again found in
the foreign group, where brazil issues
as to the progress of the insurrection
in that country. Dealings were in
much large volume than at any time
since. the dirorder first broke out. A
block of 240 Brazil SIS was thrown
over directly a the opening for a new
low on this decline. and BraziPs Is
the Central Railway Electritication
Loan. which have been relatively the
weakest of all the Brazil issues, sold
down points on the first transaction.
The news, as far as Wall street had it
was no more alarming than yester-
day, and from some sources it was in
fact more encouraging.
Other Issues Strong.
Other foreign bonds were not much
affected by the weakness in the Bra
zils. Bolivia IS we're heavy, but
European issues we're generally firm
with higher prices for some of the
Dutch East Indies bonds. Changes on
the week in the foreign list have been
very irregular. Meanwhile american
investment bankers continue to en-
courage the purchase of foreign
securities.
The latest plan along this line is
to form debenture corporation,
which will finance loans to foreign
industry and sell it's own securities
to American investors
The general bond market today
showed little sign of recovery from
yesterdays reaction. Libertys and
the high-grade group generally
dragged. On the week all >the Lib
erty bonds and the Treasury AIS
are down and this without change in
the money situation. Apparently the
advance over the last month has more
than discounted the ease in money.
Same Selling in Rails.
More or less the same is true of
prime Investment rails add indus
trials. If. however, moneyvContinues
to progress toward lower levels it is
difficult to see how there can be any
substantial reaction in bonds and the
withdrawal by the Treasury Depart
ment of savings certificates from sale
on the ground that the market did
not warrant the government paying
- y per cent on these securities when
funds could be obtained cheaper in
the open market would indicate that
the responsible officials did not ex-
pect higher money rates
In the speculative rails today there
was some selling of Missouri Pacific
General As as well as the refundine
5s of 1865 and refunding 6s No
reason for this can be found in the
progress of the company, Missouri
Pacific being one of the striking ex-
ceptions to the general trend toward
lower earnings.
The weeks total of new bonds
reached more than $50, 100000. of which
more than one-thrd were state and
municipal offerings.
Central Railway Drops.
BY the Associated Press.
NEW YORK, July l2.-Reports that
the Sac Paulo revolution had as.
sumner nation wide aspect today
caused fresh selling of Brazilian
bonds, forcing recessions ranging
from fractions to four points. The
Central Railway Is suffered the heav-
lest loss, with the governments IS
dropping 212 points. and the Rio de
Janeiro SIS of 1916 declining 1h
Price movements in other sections OF
the list were narrow. with the main
tendency downward. Serbian and
Czechoslovak obligations improved and
lnterborough issues were firm.