Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-04
PRIME BOND ISSUES
SHOW STEADY TONE.
Market Displays IrreguIarity
as Demand SIackens-Ger-
man Group Strong.
BY F. H. RICHARDSON.

Special Dispatch to The Star.
NEW YORK, December 4.-The bond
market today was highly selective. Most
issues of the seasoned investment
variety stood firm or advanced frac-
sionally. as did United States Govern
ment obligations. But in the second
and third grade group there. was an
absence of Wednesdays spectacular
buying and prices had an indeterminate
tone.
Foreign dollar bonds did very little
with the exception of the German
group, the latter making some notable
Improvement in response to the recon-
mendat1on OF well known American
economist, DR.. Benjamin M. Anderson,
OF the Chase National Bank. Money
rates were unchanged and supplies of
funds were ample. Volume was some
what heavier than on Wednesday
The opening was irregular, bonds bear
ing direct relation to stock move
ments being heavy while investment
issues revealed tendency to advance.
In the high-grade group Atchison Gen.
eral As, Nickel Plate As, Chesapeake &
Ohio AIS, American Telephone SIS.
Duquesne Light 4l2s, Utah Power g.
Light 5s, and American g. Foreign
Power 5S all had a firm tone.
ConvertibleS that Sagged included AL
legf1any SIS, Commercial Investment
Trust 512s, Philadelphia & Reading
Coal 81 Iron IS, Atchison AIS, Southern
Pacific 412s, American Telephone AIS,
international Telephone AIS and War
ner Bros. Pictures IS. The last issue
was stronger at the opening, but re-
acted in later trading
Thu hpaVy frodinU IN TTpffaI
Government obligations had come to
an end, but there was still an active
inquiry for Liberty fourth 4K4s. which
advanced to within q shade of their
high point of the year.
Mr.. AnderSon'S announcement en-
phasized that many good foreign issues
are selling at prices which are much
below their true value. / have in mind
particularly German issues and specifi-
cally the dollar bond of the German
government" He said that he did not
believe Germany's general credit was in
doubt, but even If it were the dollar
bonds of the German government would
still be safe. This treasured many
holders Of Young plan 5Iss, who had
seen their bonds drop from the offering
price OF 80 to close to 22-point dis
count. Today this issue advanced frac-
tionally to level A points above its
low.
A survey of railroad earnings makes
it apparent that at least two of the
railroads, the legality of whose securi-
ties for savings banks and trust funds
in New York State had been in ques-
ton, will not cover the one and half
times fixed charges ratio necessary to
remain in that distinguished class. The
Chicago, Indianapolis & Louisville and
the Mobile & Ohio are the two roads.
They will cover only rs to 100 per cent
of fixed charges. Their securities have
suffered accordingly A number of
other railroads were close to the line,
but it is thought that most of the 10
whose earnings had been specifically
viewed will manage to get by.
Second-grade railroad bonds today
were irregular. Chicago Great West
ern As. st. Paul adjustments, st. Paul
IS, Rock Island 41as and Southern Rail-
way As were heavy. Erie IS, Missouri
Pacific As. Frisco 4Ias and Seaboard
Air Line IS were firm. In the indus
trials there was a notable absence of
Wednesdays window dressing"