Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-19
INVESTMENT BOND
MARKET IMPROVES
South American Group Pro-
vides Feature of Trading
During Week.
special pispatch to rhe Star.

Special Dispatch to The Star.
NEW YORK, october 18.-American
investors who proved themselves
temperamentally unsuited to hold
| foreign securities last week. when they
dumped their south American bonds
on the market for what they would
bring, also proved themselves quick to
| pick up such bonds at bargain prices
| this week. South Americans made as
impressive a recovery as they had made
a precipitate decline.
At the end of the week q group of
ten South American issues stood at
an average price of 1905 against $3.50
q week ago, and a. group of ten
Brazilian issues stood at an average
Of 65.6 compared with 54.30 week ago
Cause Of Recovery.
The recovery of the Brazilian group
was attributable to three things. First,
the reinsurance given American in
vestors by shipments OF gold from
Brazil 10 New York. Second, the buying
Of SPECTATORS convinced that the so
cents on the dollar level was too low
for any South American bond. Third,
the hliying of their own bonds, for
retirement purposes, by those OF the
republics concerned fortunate enough
to have cash on hand with which to
take advantage of the low prices.
AS for any actual news Of the revolu-
ton. the market had to be satisfied
with the usual Official bulletins, Rebels
Claim victory" "Federals Claim Town"
and so on. Nothing definite will be
known, 1t is pointed out, until decisive
battle is fought. When this occurs there
viii be a general stampede to the side
Of the victor. Meanwhile, coffee and
cocoa prices continue to reflect nerv-
BUSINESS over the possible stoppage Of
exports from Brazil, which would sert-
ously affect the shorts.
other South American issues were
aided by analyses emanating from their
local .consulates, from their New York
bankers, and from their own capitals
showing that immediate sinking fund
and interest payments were being met
and that conditions are as good as
might be expected in the current world
wide depression. Uruguayan, Colombian
and Bolivian descriptions, which had
been most drastically affected In the
selling, were helped in this way.
other Foreign Issues.
American issues were weak on news
of small revolt in one Of the provinces
land uncertainty concerning the fate
of q bill introduced before the Mexican
HOUSE pTOpOSlIlk 10 OeI61 QCDG' pdyu1Cu6D
in favor of agricultural relief.
AS regards the Argentine, Its obliga-
tons were firmer with reports tEa<.k
definite action had been taken to staGa-
lie the exchange rate by gold ship
ments. The estimated deficit in the
Argentine budget was bearish factor,
however.
German bonds continued to waver,
with Chancellor Bruening still standing
uncertainty at the helm. The closing
of large industrial plants like German
General Electric and SiemenS- HalSke,
because of strikes, was another adverse
factor.
Domestic Market.
The domestic investment market was
affected by continued forced liquidation
as stocks went into new low ground
and by a total of $127, 298 900 Of new
issues, compared with $119, 739 900 last
| week and $44, 191 900 in the same 1929
week. Secondary and tertiary issues
dropped in the last three sessions, after
making small recoveries earlier in the
week. Prime issues were virtually un-
changed.
The general market was little I'M
changed on the average as shown by
the fact that standard statistics index
Of 80 issues stood at 99.9, compared
with 100 week ago.
0Copyright, 1900