Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-14
BONDS OF GERMANY
DRIVEN DOWNWARD
Selling of Foreign Dollar
Issues Continues Active
on Market.
BY F. H. RICHARDSON,

Special Dispatch to The Star.
NEW YORK, July 14.-Selling of for
eign dollar bonds. especially the German
group, continued in undated volume
on the bond market today. German
Government 5hs were driven down to
q new low since issue, off over points
on the day and at a 30-point discount
Dawes Preparations rs were of more
than 2 points and at a new low since
issue. German Central Bank issues lost
another 4 points. German Municipals
such as Berlin IS and 6ias, Saxon Is,
Prussian IS and 6l2s and Nuremberg Is
were of to 10 points with no apparent
support anywhere in the market. In
dustrials like United Steel Works 6Ias
and Siemens q Halske 6 l2s were to
10 points lower, as were public utilities
such as Westphalia Electric 6s and
Rhine Westphalia Power IS.
The market started only slightly
lower because there had been a stronger
tone in London just before the open
ing here. But shortly after the open
ing adv1ces from the continent inter-
preted the overnight developments as
meaning that although the previous
100000, 900 international credit had
been renewed-it could not have been
otherwise in any event-nothing else
had been agreed upon because of the
political differences between France and
Germany. Then a spokesman for
Chancellor Bruening said: France has
increased her political conditions for
participation in an international credit.
We are determined not to give in and
hence are preparing the utmost emer-
gency measures for self help"
The market for German bonds fell tn
pieces on this news. Losses Of 2 and 4
points occurred between sales. In two
days the average depreciation in Ger
man dollar bonds has amounted to IA
points. which means a paper loss of
close to 5000. 000, 900 to American invest
ors Current prices for Germans aver
age around so to SIS. which mean that
nearly half Of the par value OF 81. 300. =
100000 German bonds outstanding has
been wiped out.
Such panicky liquidation had its ef-
feet on other bonds. The South Ameri-
can group declined sharply, notably.
Chilean and Colombian issues. which
are now selling 10 to IA points below
their levels of last week. Brazilians de-
clined 2 to 3 points. The Argentine
group lost ground more sedately. Aus
tralians were off to 2 points. A new
development in the foreign bond mar
ket. and one significant Of the current
attitude toward Europe in general. was
the unusually heavy selling Of high
grade issues. such as French Is and
712s. Denmark 4l2s, Kreuger IL Toll
IS, Copenhagen AIS and Antwerp SIS.
Italy Is, 4 bond usually held well above
par, fell nearly a point on the liquida-
ton of some $l50,000.
Domestic issues were quieter and
their price movements correSpondingly
narrower, but losses were general in
the junior group. Second-grade rails,
such as Frisco 412s. Erie SIS, Nickel
Plate AIS, Allegheny IS and ST. Paul
IS and adjustments, dropped a point
Even some of the better grade rails
like Canadian Pacific perpetual As were
substantially lower. Industrials moved
the same way. The most highly regard
ed of the prime issues held firm.
Copyright. 1872