Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-12-31

Many OF the per cent railroad
mortgages now are closed. which in 81.
self improves the market position Of
these bonds and compeIs the issuance
of junior mortgages Of large author
lied amounts. The railroads were also
able in 1927 to refund freely with
Az per cent coupon bonds. One 81
the striking market movements in
the last quarter OF the year wss TIE
strength and popularity Of this group
Of low coupon junior issues. Originally
placed al prices which did not attract
the investor. they eventually rose %
premiums of 10 s points over the
initial quotation.
u. 9. Issues Buoy Whole List.
Obviously the domestic corporation
bond list has been assisted during the
year by what has taken place in Ire
field of Government fina ncinz. This
could not have been effected 20 slc-
ceSsfully without low money rate
To help the refunding OF the x3Io4.
100000 second Liberty AZ per cent
bonds outsta nding last March. How.
ever. the steadily rising level Of GOV
eminent bond prices has communicate
ell it's effect To corporation bonds and
viii continue to do so.
II Is quite significant that the adj
certificates this year has been greater
than in the sta ndard frs, rn0r,~zgs
railroad per cent bonds The aver.
age rise in three Treasury issues "a.
Va points. That in three legal r-I.
F''dd bonds YVES points TSA
movement in the first grouD in fne
FAST te" weeks has been much nocys
rapid thdn in the second During he.
cemoer, Treasury certificates So'd =,
an average yield Of around a rar
cent. compared with an average r.,iIr,
on best rails of about 40 per cent
the suggestion of SeCretarv Nei.
ION that all future Government bonds
We Haane Tree 81 all taxes i accepted.
isoi only VIII existing issues be benz
hted. but the bonds OF cities. States
ard all political divisions which Uo,v
erloy immunity frox tax will b. afTa,,,.
ed Early in 1928 the Treasury mus
teke, up the problem Of retiring ihe
tnird Liberty "a per cent bonds
amounting To about g. 900 0u0 zoe and
Que september Is. The next ,ptjonaI
maturities are those OF the fr~t AZ
In 1882 and the first "A in the sans
year.
French and Belgian Issues Strong.
IL was stated at the beginning of this
(. ''idN tHe average price 81 tor
elSn issues IN 1927 had advanced
about = points In snn1a cYo,,rs-
however. the gain has been crssgsr-
Tor instance, IN French and Eal-5sn
government municipal and rslIg,ad
is es. The wonderful Improvement
IN Inc French financial position this
year and the stabiliza ton az Bsl-lar
currency in 1925 resulted in rapid
appreciation IN the value Of their OK
ternsl loans. The French - wiI be
retired in March Four French bombs
show an average gain ct points.
ne same number of Belgian loans
are today between az and ; points
AVERAGE higher Than they were a. tbs
end Of 1925
Along with these there has been a
general Improvement IN the Position
OF most OF the bonds OF South Afrsrj-
can republics, In spite CO the hssvy
offerings of Argentine government s.
all these bonds have advanced. Like
wise the issues Of Brazil. Chic and
Peru have gone higher with better in
ternal credit conditions
Italian government. Fnuricirsi ami
public utility dollar s,ssus have Dad
periods Of great strength duvirg me
year
The bonds ni Poland. among ,hs
latest tO gu hack In their Original -
sue price. have been benefited hv the
more stable financial conditions in Pe-
. land. though the last issue ct - DIS
not 20 we'll Nest Of the hans q
Scandinavian countries and those &c
Holland have found their way into
the hands OF investors AZ gradually
rising prices Throughout, the wear.
Europe has freely rspurChaSsd her sx.
S&rnal loans during 1927
Germany Heaviest Borrower.
Something over 81 sac ,sss,a. ssesa ~ for
elSu dollar bonds were brought eut "a
the American market in 1$@1, Tire
largest tndly dual borrower Srncnx ,ss
European countries w&< Ge9msmV.
German bonds in nscE uh,Sr Wsrs
nrarlN all bower In price than IN The
same monra ~ ia&S, This VAS ds}~
1saI en;v to sa excessive sUpptN -
'OSnS rus cf Gerfsssuv. bat - 'ns
nervousness smCpS holders cVsr ree
repsra. tNnS payments &nG the ccys-
fusion that EXISTS a. - pytNf,yN eS
paNmergS NJ lN'in<ipSl ami interest Of
these i,Aans as against lNaNEas0tS EoS
repAT&tlca,
IL viii ~ recalled thar rrSn>A s',l>
tsr hssntiS stamped eNAtfN EtslaIw INK tss
French tnVlA>too III she Euav Sad .As
collapse ia the franc. ~ that s.t'sS
mann AuerSc2N investors >eSSG tN$a'
al CONSIDERABLE >>sct ,ss,'v,$ Otasrs
ls,uSh; them in the aSgssT JhSs kSyAaCs
weuld correct her SuE~rssS1 CSsDjst5tsseS.
p,,ttsir4lt> AMI e>e,u,smtc8lsN. ART hSNe
made tSvSv pVsne>, II y NHW argued
that the hNltier Ng (seynNSo esVas'> w}0
Sl>, >es a xss~a appreciation oa AsS
securities as the adjustments news
>srN ~ carry Cut tAs vSEatStN'st>
plan and takltS cArs NJ eNtsTn@, eAss,
cations aVN made MS NY ses
>trunSeSs os All tua'ssa<e$ over tasS
StN,1lp Will ~ that ~ = ,a>>yS az tv>>
tes>'eSi Investment in ghsN as yAe = A.
ket Ter all other hGxA SYs,Ae ~ e1eS
StVeS a Snsalles Sei SnaS}ASr F~g0Ea
IL the investor With all S,~~s ANsss>
man covtNsgastNa tsNetiS below ; esv
cent basis and a lSgSe eussksxv eNea
Undsr 4 = rSv ceay, the agtrAct n esseS>
~ SevmAa >AatS, ,nuNs,laAAl assl ps'N
lsv utis,JN sNteTtVs >eS Ne lsTSs S>tvntNS
capacity Nn 4 ~ ~ lNNS c~nt ~.
r<Nsns basis Nil impress itself M tAs
AanSTtCsU investor, At tAe S8essa tssms
a. demand TOR Moalc,eSA) sS~sss,3NN
in Germany. and. taeyegVyS> 4 SsstStAeg
number az moatcilAl sv>SnS, MI, sss.
prove tAe asavAet fVr esA~snSNS Nf 81
10 the old sSSsssS
Oatke<Ak ter Tea
In cFssSS,iestnS tAS NuyASs>>N gN'S eNsa>
tW t@SS twN Q0e$gsNsatS usNSS CAST ~
SaSwNEeA These SESs Viii asaSNSN
rates t<>nttaOS eASS aud Mil tAa sap
W,es eg new tsSn>lS ~ rrzulAgSl kN
s<NsNGm Nth the S;NSSsA;AS cay>tG2tN
M the mavksg<
TheH~ ~ &NetN ta,st>,attt.a tNAt
'NrneN wtN ctNattNNs Al fsn,r As~
average rate sAg}N va lsSS <,I
FEW AANAats believe thar We ~AaA
hsNe after the tWCa NJ me N@&r, =
renewal rate NF 81 ps'g SeRt. at3 yNsy>
ASlSS s peF c~at. The Sv&tna sc Gov