Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-10
INVESTMENT BOND
BUYING IS STRONG
Market Reaches New High
Level During Week-High-
Grade Issues Advance.
Special Dispatch TO The Star.

Special Dispatch TO The Star.
NEW YORK, August 9.-Bonds
reached new high level-the high
est since April, 1928-during the past
week, but there was no ACCOMPANYING
increase in volume, except in the two
last market sessions, when there was
heavy selling of convertible bonds and
no little amount of forced liquidation
in other issues
The feature of the investment situa-
ton continues to be the sharp demand
for high-grade bonds of all kinds, and
many of these are now selling at the
best levels in years Standard Sta
tisticS' index of 80 bonds went to a
new peak on Thursday and Friday al
1907, the chief point of strength being
in the 10 railroad bonds, which form
one of the component indices.
New Issues.
New capital flotations were brought
down to low point at $70,940, 900 COM
pared to $118,958,000 last week and
s22, 5000 in the same 1929 week.
This resulted in clearing of dealers
shelves of all but the most unattractive
bonds, with consequent marking up
OF prime municipals and rail equip
mentS.
The largest new issue was $50 600, 900
Swift & Co. 1o-year per cent notes
priced at par. The issue was popular
and went quickly. Another large of
tering was $20,000,o00 Ontario Power
Service Corporation, Limited, sig per
cent closed mortgage bonds, which were
sold at 1922. These also went quickly.
There was only Smattering of small
municipals and these were quickly dis
tributed in a market that was strongly
upheld. AS in the case of Chicago a
few months ago, the street is confident
that Miami and other Florida centers
will meet all their debts eventually.
The weakness on Friday in the South
American group was partly traceable tt
the Sagging of commodities which COM
pose most of the exports of Brazil, Co.
lombia and Bolivia, and partly tx
forced selling by distressed margin
traders. The Sac Paulo government
according to the New York bankers
who concluded the agreement under
which the recent coffee realization loar
was put out, has lived up to every de-
tail of its contract. There was feel
ing, however, that with a considerable
portion of the coffee loan still to be re-
tailed in the world markets, every eff
fort would be made to keep the coffee
reports as attractive as possible.
French and Belgian bonds were
strong all week. the former because OF
French government sinking fund pur-
chases with the portions of the Young
loan subscribed in the United States
and allotted to France, and the latter
because of approaching refunding and
redeeming operations.
In the domestic market the feature
was the sagging of bonds with equity
features on Friday. This started with
a decline in Warner Bros. Pictures SIS,
after the directors had omitted the
quarterly dividend, and spread through
out the amusement group and into the
whole convertible list.
An individual feature of the domestic
section was the strength of Chicago &
Alton first lien aus under purchasing
operations on behalf of the Baltimore
& Ohio, which is occurring control of
the Alton under the Interstate Com
merce Commission plan of consolida-
ton.
Copyright. 1907