Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-06
INVESTMENT BOND
ISSUES MARK TIME
Demand for Fixed Income Sc
CuritieS Quiets Down Dur
ing the Week.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, April 5.-The lull in the
investment market continued during
the past week. 1t was accepted by
Wall Street as temporary halt in the
advance of fixed income securities to
higher price levels, rather than as an
indication that the period of cheap
money rates is to be terminated soon.
Bond prices declined and advanced
by minute fractions in rather quiet mar
ket sessions. the only serious reverse
being in the foreign department, which
was Affected by ~ profit pr iit taking t,,
entire list ended the week at 9407
against 9424 the week before, or vir-
tually unchanged. This was the natu-
raj result of the continued low levels
of money rates. Time money, which
opened the week at 80 to 4 per cent,
hardened around the 4 per cent rate
in midweek, and bankers acceptances
crept up an eighth from their lowest
quotations. This move in money, if
it can be called move, had hardly any
perceptible effect on the list.
World Trade Conditions.
International conditions bearing on
the money market and bond prices
showed no important change during
the past week. Commodity prices, the
wide decline Of which aided the bond
markets advance Of three weeks ago,
seemed to be on the way to recovery
Sweden and Switzerland reduced their
bank rate, but this, in view Of the re-
tention of the London and New York
rate at their present levels, was taken
merely as an adjustment to previous
cuts in rates.
There was a total of about 500, 000,-
600 of new issues compared with $780,
600 900 last week and $210.000.000 the
week before Since q good half of this
weeks offerings was municipals, the Sit
uation in that market has been relieved
somewhat. White muncipals are still go
ing over the counter at their best quota
lions since 1928, the addition of $50
10000 to the dealers Scant supplies
prevented what promised to be scar
city. All of the issues were small and
with the exception of two Canadian
issues no foreign borrowings were re-
corded.
The steadily diminishing flood of new
flotations, which was inspired by the
extremely active market of mid-March,
has helped dealers to distribute the
supplies on hand. Decrease in volume
Of bond trading to the $l0,000,000 level
on the Stock Exchange also has bene-
flied the market. Thus the markets
technical position has been improved
Undoubtedly, a good portion of the
$3.50 ,000, 900 paid in dividends and bond
interest at the end of March found its
way into the investment market.
Government Group.
u. S. Government obligations made
small advances during the week, the
average of the eight active issues being
1O3. 742, compared with 103.636 the week
before. Since the legal rails and public
utilities paralleled this improvement
during the latter part of the week, in
stitutional buying was indicated. The
prime rails ended the week at an aver
age of 94.73, compared with 94.91 the
week before, and 10 high-grade public
utilities stood at 1851, compared with
1887. A group of 10 industrials i'm
proved from 1928 to 1857. Ten junior
railroad bonds stood at 1888, as against
SO. SO the week before.
The average of 10 representative for
eign bonds ended this week with an
average of 10071, compared to 101.16
the week before. This drop was chiefly
occasioned by selling OF South Ameri-
can, German and Central european OBJ
legations. In connection with the drop
in German bonds, it is pointed out that
such an issue as the German repara-
tions Is Rave been pushed up to their
highest levels in two years in prepare
ton for the first installment Of the new
reparations bonds to be put out In May
German reparations Is went to 1922,
an advance of more than 8 points from
the low of the year. They dropped
over a point when holders sold to
realize their profits. Similarly, some
South Americans had been pushed to
new highs in order to bring out new
issues, and they subsequently slumped
with the final distribution OF the later
offerings.
In connection with the reparations
issues, advices from London indicated
that Paris desired a much larger share
of these bonds than had been tenta-
lively allotted TO it. The total OF $780,
100000 will now be divided, roughly, az
follows: Paris, $200000,000 London,
$25, 900 900; New York, $4,000 600. and
the balance in other European capitals.
Paris, having large maturities OF French
government bonds at hand, wishes to be
able - exchange these outstanding