Evening star., 1925-09-06
BOND PRICES HOLD
FIRM DURING WEEK
Higher Than Month Ago.
Money Rise UnlikeB-In-
terest in Foreign Issues.
BY GEORGE T. HUGHES.

special Dispatch to The Star.
NEW YORK, September 5.-The in
vestment market has been steady all
week, Even when heavy liquidation
was going on in stocks there was no
corresponding disturbance in bonds.
NThe average price, taking all groups,
Is about where it was seven days ago,
but substantially higher than a full
month ago, and there are no indica-
tions of any weakening. Trading is
very quiet, but there are more buyers
than sellers, especially in the grade
yielding around 51b per cent. Dealers
are not taking on stocks. and there is
d minimum of speculative purchasing,
but when an order from a financial in
Stitution comes into the market 1t is
not easily filled if any large block is
involved.
Lower Money Likely.
There has been no change in quota
tions for time money Notwithstanding
the easing in call funds. On the other
hand, there are increasing evidences
that money is beginning to pile up
and that lower rates rather than
higher are in prospect.
This is an extraordinary situation
at this season of the year, but the
fact seems to be that transportation
is, so efficient and that hand-to-mouth
buying is so popular that it takes
much less credit than formerly to
carry on a large volume of trade. A
COntributOry cause is the compara-
lively small amount of new security
tlotations. This will probably be
changed after the holiday, until which
time much fresh financing has been
held back, but the present indications
are that any reasonable amount will
be readily absorbed
No concern is expressed anywhere
over the prospect of gold exports. On
the contrary, it seems more likely that
our gold supply will either remain sta
tionary or be increased. The big prob
lem relates to the measures to be
taken by the British banking authori-
ties to maintain sterling at gold
parity. The American credits have
not yet been touched and they are
available for that purpose if neces-
Sary. If the present condition con-
inues. it will sooner or later be re-
ttected in further hardening of bond
prices.
German Sevens at New Top.
Doubtless it is search for profitable
returns which has been responsible
for the renewed interest shown in the
outstanding foreign dollar loans The
German Is, originally issued as part of
the program TO put the Dawes plan
into effect, made a new record high
price this week. French bonds have
been higher and some of the other
European and South American obliga-
ttons have been in better demand.
This inquiry cannot be ascribed to i'm
proved economic conditions outside the
United States so much as to the at
tractive yields these securities offer
compared with those obtainabIe at
home
Any sudden development of an un-
favorable character abroad would
check this movement, but of that there
is no sign at present The steps taken
so far by our various European debt.
ors to fund their wartime obligations
10 the United States Government have
temporarily at least reassured invest
ors. whatever the long-term effect NAV
be.
Railway Bonds Stronger.
Testimony to the favorable outlook
for the carriers came in the form of
the raising of the dividend of the St.
Louts-San Francisco stock the other
day. There is much speculative gos-
sip about other dividend increases or
ulVldend assumptions. However this
may turn out, the position of the
higher yielding railway bonds has been
measurably strengthened.
There is, of course, the anthracite
strike to be considered. If it is of
long duration the revenues of the hard
coal carriers would suffer, but, on the
other hand, incomes of the roads prin.
clpaliy carrying soft coal will be bene-
nted. And as a group the hard coal
roads are among the strongest finan-
claliy. AT any rate, so far there has
been no evidence of anxiety about the
strike situation in the security market.
lCOpYriEht IaOh