Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-05
INVESTMENT MART
. HAS FINE RECOVERY
Emphatic Advances in Last
Two Trade Days of Week
Are Recorded.
speclal Dispatch b rh. So

Special Dispatch to The Star.
NEW YORK, July 5.-while the in
vestment market pursued a dull and
1eatureIeSS course during the first two
sessions OF the week, its recovery in the
last two sessions was emphatic.
This followed the heavy buying by
savings banks consequent on the de-
post OF funds from half-year dividends
and BOND interest. 1t brought high
grade bonds to their best levels of the
year and in line with money rates
Speculative issues, foreign dollar credits
and the balance of the investment list
improved Sympathetically.
Probably the outstanding event of the
week was the dissolution of the Syndi-
cate distributing the new German 5l2
per cent loan. of which $98, $50 900 was
put out here early in June Naturally
while the syndicate held, there was a
standing bid from its members for all
such bonds offered on the Stock Ex-
change at 80, the offering price. This
held the issue firmly at that level and
for short time it was at a small
premium.
Bullish on German Bonds.
When the syndicate was wound up
the Street had predicted, the price
would drop to discount comparable to
that of the same bonds on the London
market, which ran from to IA per
cent. The opening price of 881s on
Thursday, when the syndicate finally
withdrew its bid. seemed to bear out
this forecast. But when the bonds
proved to be tremendously popular al
prices ranging to above 80, the market
became bullish on German bonds and
other issues improved strongly.
Part of this was attributable to saw
ings bank buying in other sections OF
the list, thus forcing dealers who were
stocking up to resort to foreign dollar
credits, and part was caused by buying
for foreign account.
With a dull stock market and a re.
duced volume of new capital offering.
the market had much in its favor
Banks are taking advantage of the
spread between the yields in the cal
money market-curtently at less thar
212 per cent average-and those avail
able in seasoned bonds, which range
from 4 to 5l2 per cent The popularity
OF short-term bonds continued so strong.
ly that virtual scarcity exists in thi.
part OF the market, and that is WHY
many institutions turned to long-tern
bonds in recent sessions.
New Offerings Smaller.
The total of new offerings was $94..
100000, compared with about $3.50, 900, :.
900 last week.
The index of 80 bonds. as compiled
by Standard Statistics, climbed above
100 at the end of the week, compared
with the 1880 high to date of zoos anC
the 1929 low of 962. 1t was the utilities
that showed the greatest strength. as IL
of these issues went over 100, compared
with their previous high of 999. How
ever, railroads made strong comeback
from the low levels to which stock sell.
ing had driven them In the previous
week, with an average above 107. COM
pared with their 1880 high to date OF
1913.
Municipals. of course, continued in
strong demand in such a market. and
there was some marking up of prices
The average yield in this market was
estimated at $50 to 40 per cent for
prime issues at the end of the week
compared with $40 to 400 per cent In
the preceding week.
In connection with the Municipal
Market, Joseph A. Broderick, New York
State superintendent of banks, an
nounced his Semt-annual revision of the
list OF securities legal for investment
by savings banks. Since New York
State is the model for many other
states, this list has a national signi-
hcance. There are number of secur-
tiles removed from the legal list
notably bonds of West Orange. N. j.;
Oakland County Mich; Pontiac, Mich:
San Antonio Independent School Dis
trict, Tex. Beaver Falls, Pa; Lacka-
wanna County, Pa; Lancaster, Pa;
East Chicago, Ind, and, among rail-
roads, all bonds of Central of Georgia
Railway, all bonds of the New Orleans