Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-17
INVESTMENT BOND
PRICES IN DECLINE
Market Adversely Affected
During Week by Action
of Stocks.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. November 16.-In the
midst of favorable conditions for a re-
vival OF bond trading and consequent
advance in prices, the investment mar
ket this week touched its lowest level
since 1925.
The explanation is, Of course, that
forced selling TO secure cash to support
stock accounts and to buy stocks at
their new low levels was too great for
investment buying to balance 1t. This
was true in every session of the week
except that of Friday, when the forced
selling of domestic bonds died away
with rising stock market. and bonds
responded with general advance.
South American Bonds.
Apart from purely technical causes,
the feature of the market was the ex-
IRENE weakness in some South Ameri-
can bonds, particularly those Of the
Brazilian coffee growing states, and Of
the Brazilian government. Various
projects to strengthen the intrinsically
weak position of the coffee market have
so far failed and Brazilian financiers
have met with small success In trying
70 noat big loan to stabilize coffee
prices. The Coffee Institute Is said to
be holding back the equivalent of a
years crop OF coffee In the hope that
some individual or syndicate will buy
on the chance Of ultimately realizing
a compensatory profit. The chances of
this, with security markets as they are.
and so many fruitful sources of Specu-
lation and investment to hand, are
considered nil. AS a result, the obliga-
tons of Brazil and her states have been
sold at prices from 2 to 20 points
below those of last week-new low
prices for the year.
Undoubtedly. also, the weakness in
cocoa and rubber prices-also exports
OF Brazil-have helped to undermine
these bonds.
Political troubles, together with a
resultant shutting down Of trade, are
blamed for the losses in Colombian
bonds, which were brought out in ex-
cesSlve amounts in New York in 1927
and 1928.
Other foreign bonds ended the week
talrly strong after touching new low
prices on Wednesday and Thursday.
German issues were weak on Friday fol-
lowing the publication of the proposed
statutes OF the International Payments
Bank. The fact that the Nationalist
referendum to decide whether or not
me German people will repudiate the
young plan is to be held had some
eject on these bonds.
Market in Good Position.
For the rest. the bond market is now
IN good position. Bond prices are low
Yields are high. Money is cheap. Time
money is 5la per cent, with slightly
better rate obtainable in the outside
market. Brokers loans have come down
about $2,75o, 100000 from their high
point of month ago. And the scarcity
Of bonds continues, with only $45, 76l 600
new offerings during the week, against
$5O,Oo00 900 called in the same period.
The new offerings compared with
Sl6,866,O00 last week and SIS, 765, 600 a
year ago.
New issues included $40, 900 900 Nickel
Plate three-year per cents, $l8,500, 900
Montreal Harbor Commissioners. 40
years, IS per cent-guaranteed by the
Canadian government-and a number
OF municipal and state issues.
The American Sugar Refining Co.
called $5,000000 of 15-year 6 per cents
and the Union Pacific decided to nav
out of cash reserves $4,000, 900 OF
Oregon Shore Line Is, which 1t guar
anteed