Evening star., 1929-10-13
BOND PRICES GAIN
ON EASIER MONEY
Market Improves Consider
ably During Week-High-
Grade issues in Demand.
erecial pispatch to th. star.

Special Dispatch to the star.
NEW YORK. October l2.-The low
average to which bond prices had
fallen, the walloping that some in
vestors had received in the stock mar
ket and the easing In money rates. all
combined this week to effect a higher
range of bond prices This advance
the only sections to have any sign of
a weak trend being that of the foreign
loans.
It was the first definite evidence this
year of q revival of bond trading. On
Thursday the bond sales were che
highest since August 2. and by far
the highest since the recent temporary
landslide in stocks. AS a group the
convertibles were naturally the most
sensational in width of fluctuation. but
to those old bond men who have stood
on the sidelineS so long and have seen
the bond market sink deeper and deep
er into the slough of deSpond, the broad
and steady gain in the high-grade
rails and public utilities was also a
sensation and not one to be measured
in mere terms Of points.
Had Reached Low Mark.
Bond prices had reached their low
est average since 1925. and with the
exception of these issues legal to saw
lngS banks and trustees, their yields
had increased to a point where the
market competed, in some measure,
with the money markets. This factor
OF high yields helper those who had
received trimming in the stock mar
kets and who were partially convinced
that the bullish stock market is about
over, to make up their minds to get
back into bonds
An immediate result of the easing in
money was that United States Govern
ment securities. which had been sliding
on for weeks, strengthened from
S-32 to 20-32.
The disappearance of the symptoms
OF the illness from which the bond
market had been suffering for so long,
and the evident signs of returning
health. were hailed with JOY by those
companies needing new financing and
the wesS cav the Heaviest quota of new
issues in some time.
Chief among these in point of size
was that of the Texas Corporation for
100000 900 in per cent. The issue
was priced at 98I9 to yield over 5is.
However, this one had the convertible
feature SO common in recent months.
It was well received in the Street, dis
appeared rapidly and went to a
premium of az points.
But the power of bond absorption now
existing was shown most prominently
on Thursday when $4,000, 900 New
York Central Railroad equipment trust
412s, to yield 6 to SIS per cent, were
disposed of in a matter of minutes after
the books were opened This last proved
to be the most stimulating influence
the high-grade market has had for
many months. The long term maturi-
ties, on a SIS basis, were l per cent
higher than the same bonds a little
over year ago, For the first three
maturities it was possible to obtain a
yield ranging from 8 to 5l2 per cent.
Other Offerings.
During the week also. New York City
offered $1,000 900 of short term notes,
to yield $50 per cent; the Simmons Co.,
S15.000.00o of per cent with stock
warrants; the waldorf Astoria Corpora
ton, $l1 10000 first mortgage per
cent with stock warrants; the City of
Dallas, Tex, $4490, 900, to yield 4.65 to
SIS per cent; the Puget Sound Power
e. Light Co., SO, ,00D, 900 of 5l5s, to yield
over 5.65; the City of Baltimore, $4,-
037, 900 Of per cent, and the Municipal
Investment Trust, 100000 of per
cent certificates.
These offerings, with the many
smaller issues also put out during the
week, indicate the Soundness of the
technical position Of the bond market
and in view Of the success of some of
the new bonds, particularly that of the
New York Central Railroad equipment
trust 41zs, 1t may be possible soon for
some strong corporation to bring out q
good mortgage issue on terms that will
find q ready market for 1t and permit
It TO sell at premium.