Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-06
DEALINGS NARROW
IN BOND MARKET
Hiqh-Grade Investments Dull,
But Firm Speculative
List Irregular.
Special Dispatch to The Star

Special Dispatch to The Star.
NEW YORK, March 5--The bond
market this week continued to be
speciality affair. Dealings in small
group of securities were fairly active.
but trading generally lacked breadth.
High grade investment issues were
firm but dull. Speculative bonds con
trihuted most of the business. They
were irregular, but had a good under
tone The market in these was upset
on Wednesday in sympathy with a
sudden reaction in stocks. but soon
regained its equilibrium.
In striking contrast with the dizziness
in old bonds was a quickening of in
terest In new securities. Public
offerings were substantially larger
than the previous week. That market
at least gave promise of early OK
panston.
Money Undertone Firm.
The continued hesitancy of the
market for listed investments was
perhaps a further reflection of the
heavy financing done during the first
six weeks of the year. Other IN
fiuenceS, however, also were at work.
Money had a firm undertone and Is
likely to continue steady until forth
on March Is. The fact that Govern
ment financing is impending also tend
ed to curb activity in the bond market.
The investment community is waiting
to see what form that financing will
take.
Renewed buying of foreign bonds
was a feature of the trading. A
revival of interest in French external
loans was noticeable in particular.
stNa1
that the Poincare government would
make payment of $40 100000 interest
on her war debt to the United States
without awaiting ratification Of the
debt settlement by the French Cham
Der Of Deputies.
This announcement suggested sew
eral interesting possibilities. 1t was
surmised that Premier Poincare had
reason to believe he would be able to
obtain ratification of the debt settle
ment. Ratification Of course, would
result in removal of the Washington
ban against American loans to France.
Bankers already have petitioned Wash
ington to lift that ban, complaining
that American money is loaned indi-
rectly to France by London bankers,
thus depriving our bankers of the
high rate Of interest they could com.
mand were they to loan directly.
Polish Bonds Gain.
Polish government bonds responded
to plans for stabilizing Polish finances
by selling at new high record price.
They are up nearly 20 points from
the low price quoted six months ago.
Italian bonds, which were an active
feature last week, were in further de-
mand. The Italian government is re-
ported to be arranging large stabili-
cation loan here, and the City OF
Rome issue heretofore mentioned will
be brought out shortly. 1t will be
for 100000.
Convertible railroad bonds featured
the domestic corporation division of
the market Their movements were
governed by market conditions in their
related stocks, Missouri, Kansas &
Texas adjustment per cent bonds,
which are convertible par for par into
preferred stock, sold at new high
record price. Another convertible
railroad bond to establish a new high
record was the Delaware & Hudson
convertible per cent issue.
That, however, reacted following
news that the D & H & S option on the
Buffalo, Rochester & Pittsburgh
would not be renewed. The Delaware
& Hudson sought to make the road
part of new eastern trunk line sys-
tenn. Erie series ID, convertible As,
continued active, but irregular.
Oil Bonds Are Strong.
Some of the oil and traction bonds
were strong. Cities Service issues re-
acted in sympathy with the stock on
account of the reported illness of the
company's president.
The market in the United States
Government bonds was fiat 1t was
waiting for the new financing by the
Treasury. Banks appear to have COM
pleted their investments in anticipa-
ton of the new Offering
One of the largest new issues offered
for public subscription was SIS. 500. 600
public service gas and electric 5 per
cent refunding bonds. They were sold
at SO, to yield SOC per cent. The bonds
were well taken
An incident of interest in connection
with the new offering was the
announcement by the Mortgage &
Bona co. OF New York that it had
reduced the interest rate it will paw
on real estate mortgage bonds to the
public from 5l2 per cent to 5A per
cent. The company offered 81. 600 900
lO'year guaranteed bonds at par to
yleid "a per cent. The reduction is
typlcal or the general trend of interest
rates. COT
New railroad financing was rep.
resented by an issue of SIG. 900. 900
Iexas Pacific Railway general
mortgage and refunding per cent
bonds, offered at 99h. More railroad
oono issues are in the offing.