Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-16
REVIVAL IN BONDS
ATTRACTS PUBLIC
Many Issues Gain During the
Week Under Stimulus of
Easy Credit.


NEW YORK, March 15.-The broad
revival Of the bond market, which has
been so confidently predicted by Wall
street ever since last October's crash
of stocks, really got under way this
week
The argument that cheap money, a
commodity available for some weeks
past automatically would result in
higher prices for bonds had its justif1-
cation in the fact that the weeks ac-
tivity and improvement were predicated
on the virtual certainty that the New
York Federal Reserve Bank would cut
its rediscount rate to az per cent.
which 1t did. But the sudden turn of
sentiment on the part Of institutions
which ordinarily support the bond mar
ket and the turn Of the tide of public
interest toward the senior mart were
the cumulative results of long weeks Of
easy money rates, combined with the
gathering together Of funds which
finally had to find investment.
Bond Advance Rapid.
The banks, main buyers Of bonds, did
not have large sums Of money available
after last October's crash. People who
lost their money In the market no
longer had savings accounts. The de-
posts Of others were reduced. In the
case Of still others, their funds were
tied up in collateral supporting margin
accounts. But now enough time has
elapsed to enable depositors to save, and
stocks have again reached point where
many investors can get out without loss
or with little loss.
AS result, many bonds have adj
vanced to a point where they are
higher than at any time since early In
1928. New offerings during the week
totaled about SITS, 100000, compared
with $50 100000 last week and SOS ,0o0,-
900 in the week before. While a month
ago the putting out of $175,00o, 900 in
a single week would have had the eff
feet of depressing outstanding issues,
this week outstanding bonds advanced
into new high ground and new flota-
tons were traded In on the open market
above their Offering price.
Each day the volume of bonds traded
on the stock market has ranged $14,-
100000 to $18,000,000, compared with
$10,000,000 or less a week or two ago.
The largest item Of financing was
100000 Pennsylvania Railroad AZ
per cent debentureS. These were over
subscribed and the books closed within
few minutes. The Allegheny Corpora
ton had similar success with $25, 000,-
900 convertible per cent offering and
with preferred stock issue of $12,500,-
600, paying $3.50.
Financing Declines.
In the past two months the volume
OF financing has dropped from $2,255,-
100000 in 1929, to 81 ,303, 300, 900 this
year, but 1t Is only in stock flotations
that there has been decrease. Dur
Ing the same period total of $685.
100000 bonds were put out In 1929
against $979, SOC, 900 this year. The alb
sorbing of all this has been a strain
on the market at a time when prices
were low and demand was correspond
ingly poor, but that the markets tech
nical position was good was evidenced
by the boiling" manner in which 1t
indicated itself this week.
United States Government bonds, the
center Of much attention because OF
the scarcity Of high-grade, short-term
issues, advanced every day during the
week, and now the eight active issues
! stand at their highest since 1928. Their
average stands 104,33, compared with
their 1929 high average of 103.88.
Fifty other bonds, representing the
entire range of the market, average
1888, compared with 9l.33 last week
and their high level of 9753. Each
| group, of course, did not improve In
the same ratio. Ten prime railroad
bonds reached an average value OF
94.46 this week, compared with 92.85 a
week ago.
| Copyright, 1900