Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-28
Investment Bond
Market Develops
Easier Tendency
High-Grade Issues Con-
tinue to Reach New
Peaks, However.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, September 27.Owine
to poor earnings reports 81 number
of American public utility and indus-
trial corporations, there was a slight
drop In the general level of bonds dur
ing the past week. But this did not
indicate the gerat strength Of high
grade bonds, which continued to forge
ahead to new high levels.
At a time when the market had to
absorb stable amount of new Offer
1ngS the volume of trading picked up to
q total Of about $68,536, 900 on the
week, compared with SAC, 694 900 last
week and $60,711, 100 in the same week
OF 1929. This figure represents daily
trading average of nearly $l2,5OO 900
for the full flve-hour session ON the
New York Stock Exchange and is inn
preSSive not so much in itself, but be-
cause 1t is indicative Of much larger
counter trade besides the bonds sold on
other exchanges.
Selling in Foreign List.
Apart from the continued advance
OF seasoned favoriteS, the feature of the
investment market was the heavy
liquidation of German and other for
eign issues. Utterances of Adolf Hitler,
the German Fascist leader, at Leipzig
this week were so inflammatory that
nervous German investors flooded the
continental markets with their own
dollar and internal obligations. The
recently issued 5l5s went to q l2-point
discount in London and Amsterdam.
though the price kept to points
above those levels in New York, chiefly
because there is no arbitrage trading
IN that particular security and Wall
Streets attitude is not so pessimistic as
Is that Of those living nearer the scene
OF German political unrest. Austrian
securities came under pressure on the
report Of the resignation Of the cabi-
net of Chancellor Schober.
toward the end Of the week there
was general recovery, and though
there was fresh selling in Europe on
Friday, the price levels here were fairly
well maintained In most foreign dollar
descriptions,
The exceptions were the issues of
Australia. London's persistent attitude
OF skepticism toward the Australian
governments good faith in its proposed
economic reorganization drove those
bonds down here.
There was a total of $125,3sI ,so7 in
new bonds offered here during the week,
against $50, 942 900 last week and $685.
$4,000 in the same 1929 week. But
the movement of capital from Germany
and Austria, and from England too
owing to the wave of pessimism that
struck that market during the week
provided funds to absorb the new offer
ings here and left a large surplus.
Strength Of Utilities.
The great strength Of prime public
utility bonds was a side feature, and
there was considerable switching from.
public utility common stocks to their
preferred stocks or to their bonds. An
analysis of 95 such companies made by
Pnychon g. Co. shows estimated gross
earnings for the year at. 81, $40, 800 900,
against $685., 100000 last year and 81
283,949,0 900 in 1928. However, the same
companies reveal an increase in capital
investment to $11, 388. 100000, against
$40, loo. 100000 a year ago.
Railroad bonds Of the prime variety
were also harder, Standard Statistics
index of 10 Of them standing at 1898,
against 1924 week ago.
(Copyright, lss0)