Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-30
By F. h. RICHARDSON.
special plspatch 10 The star.

NEW YORK, November 30.-While
the past month again saw a declining
Level of prices in many speculative do
mestic bonds and in foreign dollar de-
scriptions. high-grade issues were
steady and the market did not again
descend to the depths of pessinism
touched in early october. There was
even a slight increase in activity in the
new capital markets.
So far as the index of bond prices
was concerned, the latter days of the
month Cancelled about half of the gain
made in the first week. but this still
left the general list well above the
october low and no important volume
of liquidation was forced out.
Market Values.
At the beginning of November, the
market was advancing strongly in
company with stocks and commodities.
Silver and wheat both staged sharp re-
coveries. These movements were paral-
leled to lesser extent throughout the
rest of the commodity list. While adj
| vancing commodity prices mean smaller
dollar purchasing power and should,
ordinarily, indicate lower range of
bond prices, this sign of improvement
in the business scene after months of
declines, was construed as a reason for
bringing the market for fixed income
securities back from the low level it
had reached in october. According to
the New York Stock Exchange compila-
ton of all listed bonds, their market
value at the beginning of November was
SAL, 702, 500, 146, an increase of $780,
356,607 from July /, the high mark of
the year. A total of $4,893, 756, 258 of
this depreciation occurred in foreign
government, municipal and corporate
dollar bonds.
When the market reached it peak on
the recovery shortly before the middle
of November, nearly a third of this
paper loss had been retraced. Includ-
ing bonds listed on other markets and
traded over the counter, the appre-
citation from the beginning of the month
was estimated conservatively at $3,000,-
100000. Part Of this was lost later in
the month.
One factor stood out early in the
month when the market was advancing.
That was the failure of railroad securi-
ties to follow the general improvement
Late in the month both carrier stocks
and bonds broke sharply, some of them
| to new low prices for the entire two
4 years Of the bear market.
There were cogent reasons for this.
In the first place, the reported improve
ment in business that was the logical
accompaniment of higher commodity
prices and more active security markets
failed to show in the October railroad
reports brought out in the third week
of November. In the second place, the
financial community witnessed the
spectacle of large railroad systems
carrying their long-term securities from
banker to banker In an endeavor to
sell them and meet their bank loans.
= VfaIda for TAooI Tssuas
One terminal issue, it is true, was
disposed OF during the month, but it
was guaranteed by no less than seven
major railroad companies "as to prin-
cipal and interest, jointly and severally
by Endorsement" And even then it
sold at, price to yield 51s per cent
to maturity. which, for an issue classed
as legal for savings banks and trust
funds in New York State and rated
as triple A" by all the statistical COM
panies, was a true indication of the de-
pressed state of the new capital market.
Other legal bonds of comparable Sc
curity are quoted around Al per cent
basis. as
The omission Of few dividends and
the reduction of others by some of the
larger railroads added to the load that
carrier securities had to bear. New
York Central AIS, recently issued
description, sold at more than a Is
point discount Pennsylvania AIS de-
| preciated almost as much Many other
rail bonds, for years regarded as sea-
soned securities of the best investment
classes, dropped to prices from is to
| 80 points under par.
The railroad situation near the end
of the month was further complicated
by the failure to bring about a volun-
tary wage reduction. The bond world
1 10 kIan& fat
| upturn in business, concrete aid will
have to be rendered the weaker roads.
The existing attempt to have the
| stronger systems bear the burdens of
| the small roads is considered unsound
economically, and 1t is felt that the
| stronger roads are in no position to
meet extra obligations.
For industrial and utility bonds it
was a month of little moment The
speculative utility issues that had de-
clined so drastically in October re-
covered an appreciable part of their
losses and held fairly steady in late
! November. The high-grade utilities
moved conservatively with United
| States Government bonds. The money
market firmed somewhat in response
to the cessation of the fear of boarding
in evidence in October. United States
Treasury 90-day certificates were
| PAdSS0 AL 49,
per cent per arnum yield basis, against
2.33 per cent earlier in the month.
New Offerings.
During November new bond offerings
! amounted to $55, TAT, 900, compared to
| SAL ,285, 875 in October and $249, 024 425
in November, 1890. For the IL months
! of 1881 to date bonds offered have
aggregated $3,521, 1855, 611.i against S.
799,4O7,369 in the first IL months
of 1880.
The foreign bond list was disturbed
! by new specter-the French insist
ence that German reparations be given
| priority over all commercial debts Of
IIIf--