Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-08
BOND PRICES WEAK
ON HEAVY SELLING
Developments in Argentina
Cause Liquidation-Money
Rates Are Higher.
BY z. H. RICHARDSON.

Special Dispatch to The Star.
NEW YORK September 8.-With a
budget of over $40,000.000, consisting
entirely Of new municipal bonds, ten
dency toward slightly harder rates for
time money and heavy selling of South
American bonds on the political devel-
opments in the Argentine, listed bonds
we're weak today.
Prime bonds we're either unchanged
or of by small fractions, rejecting the
new offerings and the threat of tighter
money rates. Second-grade domestic
issues were sold in switching operations
to the new flotations.
The activity was all in the foreign
department, where selling forced the
entire Argentine group off point or
more, though this was well absorbed by
investors who believe that new ad-
ministration in the Argentine may be
beneficial to American capital there.
This theory was built up on the belief
that former President Irigoyen was
anti-American and favored British
trade relations. 1t was supported by
cables from London today expressing
nervousness over the situation. 1t
served to keep the losses in Argentine
loans within narrow limits.
There was, singularly, little sympa-
thetic liquidation of other South Amer
lean dollar credits. Uruguayan and
Peruvian issues were off fractionally in
response to reports that diplomatic re-
lations between Uruguay and the new
military Junta controlling Lima govern
ment are strained and that the Uru-
guayan envoy has left for home. Other
wise the South American group was
quiet and unchanged.
japanese credits were strong. The
recently issued SIPS were active and a
shade higher. French Cities IS were af-
fected by overseas buying, though other
French obligations sagged q little. Ger
man bonds were irregular.
Mexican bonds scored some substan-
tial advances, with the Streets view
OF the situation there considerably
strengthened by a first installment on
the new debt reorganization and adyices
from Mexico City that the new debt
plan will be approved.
In the prime domestic section Ca
madam National SIS, Pennsylvania 41as
Frisco "A" As, Great Northern rs and
Standard Oil of New York AIS were
fractionally lower. Offsetting gains were
made by Chicago, Burlington & Quincy
general As, American Telephone 51as
and New York Telephone 41as. Con-
vertibles were strong, after a dull open
ing. American I. G. Chemical 51as
41as, international Telephone 41as
Texas Corporation IS and Loew's IS all
improved.
st. Paul SIS, with a 134-point gain;
st. Paul adjustments, with a point ad-
vance, and Chicago Great Western A
up u point featured the junior rails
There were also small gains in Mis-
souri-Pacific As and Southern Railway
As. but the rest of the list was un.
changed or slightly lower. The st. Pau
issues responded to continued reports
of better traffic conditions. Fisk IS ano
Pathe rs were two semi-speculative in
dustrials that improved. National Dairy
Products 5As were 4 point higher. An.
glo-C Chilean Nitrate rs, Internationa
Paper SIS, Dodge Brothers IS, Armour
of Delaware 51as, Goodyear SIS and U
S. Rubber IS were of. New York
traction bonds continued active anc
strong.