Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-23
INVESTMENT BOND
BUYING SLACKENS
Market Still Digesting Recent
Large FIotations-For-
eign Group OFF.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, February 22.-There
was considerable slowing up in the
investment market during the week.
Some of this movement was attributable
to increased activity in stocks during
the early days of the week, and some
was caused by the fact that the senior
market is still digesting bond fiotations
put out in the past five or six weeks.
The Chicago situation continues to
affect the municipal market. During
the week the total of new municipal
offerings was negligible. The only issue
Of any size was for $1O,600,000 City of
Newark, N. j., Az per cent bonds, which
went at par.
Foreign exchanges have been weak as
for investment but this money was not
in sufficient quantity to support the
Sagging investment market.
A total Of about SIS. 900, 900 new issues
was brought out, against $50, ASS, 900
last week and $62 ,473,000 the week
before. A considerable Slackening of
new flotations is expected in the i'm
mediate future as result of the pres
ent dizziness. It is expected that the
offering of the 100000 orSso treas
lry financing that must be done to meet
March is maturities will be put OF q
week or so.
While the prime group held to its
levels, or advanced fractionally, declines
were general in junior railroad issues
and other bonds not rated as high grade.
Traction issues were active at firm levels
on the announcement that the Detroit
Traction Co. had been granted an g.
cent fare.
In the foreign department there was
some activity in Chilean issues, at I'M
changed prices, as a result of the ar
rangement of a 00,000-franc loan
in France. City of Berlin bonds de-
city had been forced to pay nearly 10
per cent for q $1O,0O0,O00 bank ac-
commodation.
Weakness continues to be the chief
characteristic of South American issues.
Many of these countries have had
economic and consequently political
troubles as result of the world de-
cline in commodity prices. Brazils
efforts to move out her coffee crops
she now has two years crops to SELL
have met with scant success and it is
felt certain now that she will have to
meet the market to take her loss. Par
allel, but perhaps not so acute, con-
ditions prevail in respect to rubber,
exports of South America.
These conditions have been reflected
in the bonds of all South American
countries. A comparison of the differ
ent countries, as indicated by groups
of their bonds outstanding in this
market, shows that Argentine issues
stand today at 8943 compared with a
high of 97.68 in 1929, low of 84.37 in
the same year and a low of 1855 this
year. A Chilean group stands at 1925
against a high of 97.37 last year, a low
OF 81 in 1929 and low of 81 in 1880.
Uruguayan bonds average today at 90,
compared with a high of 100 last year,
low OF 91.87 in 1929 and a low of
1926 this year.
The decline is most pronounced in
the case Of Brazil, whose bonds still
average over 20 points below their best
levels of 1929. The average is 1915,
compared with the 1929 high of 100. Is,
low of 1881 in 1929 and a low of
1888 in 1880. Colombian issues are
almost as far below their high, standing
today at 1856 against their 1929 high
OF 92.41 and lows of 65.33 in 1929 and
6795 in 1880. The Peruvian average
Is 75.5 compared with 90, and a low OF
Oh IN 1929 and 90 in 1890. Bolivian
bonds are at 81, or Is points below
their best level of 1929. In 1929 they
ed SO.
The fact that there has been re-
covery 10 this extent speaks we'll for
the soundness Of South American gov
ernmentS.
(CopyriRht, Ios0O