Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-28
ADVANCES in BONDS
MAKE PRICES HIGHEST in 9 YEARS
Special Review Shows All Grades of Investment Sc
curities Have Been Popular-Liberty 319s in
Most Interesting Move.

hemisphere. Recognition of this
progress Is evident in the market for
the ponds OF its capital city. Bolivia
S country of large undeveloped re-
sources, but comparatively poor finan.
clally. Nevertheless, 1t has a long and
honorable record of meeting its obli-
cations. record which justifies the In
creased valuation of its bonds.
Sentiment Changes Toward Brazil
The better known South American
Countries, such as Argentina and
Chile. have long enjoyed the favor
of investors. But even the bonds
of these powers. especially of the
former, have done better. The case
OF Brazil Is unique. There has been
a large advance in current quota
tons for Brazilian bonds, but in this
instance there has been a particular
reason therefor. Brazil has had
financial difficulties in the past which
have operated to depress the price
of its securities in outside markets
1t was the London investor who first
recognized that this condition had
changed decidedly for the better and
it was in London that market improve
ments for Brazilian obligations be
gan. an Improvement which now ex-
tends to the American market.
Comparatively large advances have
been made by all the active Brazilian
bonds, not only the obligations of
the central government. but those of
Its greatest city, Rio Janeiro, as well
Coffee Loan Case Illuminating.
The incident of the coffee secured
loan Is Illuminating. objection by
the Department of Commerce to the
floating of bond issues in this coun-
try designed to support the price OF
commodities which American con
sumers must import prevented the
offering of this loan in the United
States. 1t was. however, fioated in
London, and very largely oversub-
scribed. Now a certain number OF
these sterling bonds are being resold
to American investors. Incidentally
1t Is interesting to note that Brazil
! IS, the dollar issue. share with
French lbs the distinction of being
two of the few entirely non-callablc
high-yielding foreign bonds actively
traded ON the New York Stock ~
change.
European Issues Also Advance.
Turning to European issues. the
market has been more hesitant. but
still not without advance. French
bonds are in a class by themselves
and not representative of the feeling to-
ward other continental securities. As
far as permitted by the agreement
under which the bonds were origi
nally sold the countries of Northern
Europe have refunded their high
coupon rate issues on d lower yield
basis and the market for the new
bonds is well stabilized. Callable
provisions limit the possibility Of
price appreciation in others. The
test of the American investment com
munity's attitude toward Italian
bonds is yet to come. Apparently
the feeling Is more kindly than ii
was.
There is also q good deal of cor
fusion about the status of the flood
of German state and municipal Of
ferings. Most of these are not listed
on the exchange. and the over-the-
counter dealings are more difficult to
follow. Probably, however, there has
been Improvement here also. The
suggestion that these German Dor
r"wers may have difficulty in finding
exchange for transfer of funds rep
resenting interest and principal or
their bonds has received little az
tention.
Copyright. 1920