Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-27
INVESTMENT BOND
PRICES UNSETTLED
Market Goes Through Series
of Violent Changes Dur
ing Week.
,pecial pispatch to rhe star.

special Dispatch 70 the star.
NEW YORK, September 26.-The in
.vestment market huctuated violently
during the past week-alternately drop
ping to new lows and rushing up swift
~ on the recovery. The sudden changes
in sentiment, the rapid ebb and now OF
bidding and offering Of securities OF
all classes, the large volume Of excited
rllmors and the lack of anything con-
crete and definite on which to base
predictions were characteristic Of a
market which had lost its foundation.
Departure Of sterling from the gold
standard was, in this case. the lost
foundation. On the days when selling
was in the ascendant, every type OF
bond on the list was affected. United
States Governments moved down at
the rate of 2-32 to 4-32 between sales.
losing as much as point in day,
then regaining it. Their course was
downward on the week, as in midweek
a flood of dollar acceptances hit the
New York market and forced UP the
Federal Reserve bill buying rate. This
was reflected in quotations OF 2 to 2H4
per cent for 90-day loans, the first ad-
vance in time money in months. Treas
ury IS. the most recent and presumably
least well distributed Government bond,
dropped under 90. The 31ss sold I'M
der par. Other Treasury issues sold
approximately on o 1886 to $40 per
cent yield basis.
Character Of Changes.
Because of the heavy liquidation in
them the week before, high-grade cor
porate bonds did not reflect the tight
ening of money rates. Issues as SOUND
and conservative as American Tele-
phone SIS and Atchison general Is had
been sold of 4 to points in the
hysteria that had the market in It's
grip and were actually advancing on
the recovery when the money market
strengthened. Toward the end OF the
week there were many large bids in
for blocks Of good corporate bonos
with few offerings.
Junior domestic issues Of the rail-
roads. the utilities and industrial COM
panies sagged heavily to new lows early
in the week, but were firmer on Friday
when buyers took heart and sought par
gains. They were sensitive to the move
merts of the stock market and it was
not uncommon to see issues such as
Missouri-Pacif1c general As, Pathe Ex-
change rs and Texas Corporation SIS
drop 2 to points and then Jump back
again in company with their COM
panion stocks.
Foreign bonds showed the worst de-
clines ever established in single week
Drops Of 20 points in European and
South American issues were common
Danish issues lost Is to 18 points in q
day. German dollar loans were off as
much as points In day. Belgian
Dutch, Swedish, Norwegian and Aus
trian issues dropped with the rest when
it became apparent that the collapse
of sterling had made the gold position
untenable for nearly all the countries
of Europe except France. Canadian
exchange dropped to a 10-point dis
count and the issues of the Canadian
railways, the Canadian government and
its provinces dropped with it.
Foreign Issues Improve.
But even the foreign situation looked
better at the end of the week. More
mature consideration brought out the
view that defaults were exceedingly re-
mote in many of the European coun-
tries. That Canada would default was
not even considered as possible. Signs
of better business werC not wanting
The collapse of sterling had the efIec'
Of increasing activity IN many tnous-
tries in England. =.
Distress selling forced down munich
pals, but owing to the fear OF adol-
tional income tax this year or neAI
fully exempt securities giving the saIety
OF good municipals are In such denanC
that their prices were soon frightened
again and New York saw its Donos
quoted at prices higher than tnose
quoted for United States bonds.
DOWNRIGHT 1884,