Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-10
new BOND ISSUES
KEPT OFF, MARKET
Sponsors of Proposed Fl.
nancing Await Action on
Bonus Question.
spscial pispatch 70 1he star.

special Dispatch to The Star.
NEW YORK, February 10.-Although
the scare over O possible huge Govern
ment loan in connection with the sol-
diers' compensation certificates has died
down, there Is . disposition In invest
ment circles to postpone all but emer-
gency financing by corporations until
Congress has agreed to q measure that
will be satisfactory and will have
President Hoover's approval.
It is estimated that between $780,
OOO, 900 and $500 00O, 900 of new bond
offerings are under negotiation, Of
which q considerable portion would al
ready have been placed on the market
had not the bonus question unsettled
Government issues and reacted against
all high-grade corporation obligations.
Treasury Offering.
There Is also q general inclination on
the part of banking syndicates to keep
the market free of new offerings as an
aid to the Treasury financing which
must be accomplished within the next
month. Secretary Mellon has an
nounced that tenders are invited for al
issue Of $50, 600, 900 Of Treasury bills
follows the Offering of $60,000.000 OF
similar paper on January 30 Just when
the decline in United States Liberty
bonds and In United States Treasury
notes was In its extreme phase. The
discount paper was ,oyersubscribed fve
times and sold at the highest price IN
history. It Il expected that the new
issue win have fully rs good reception
as the last one.
within the last few days there has
been q revival of speculation in pubLc
utility common shares and broadening
out of the demand for public utility
preferred stocks. The market for legal
public utility bonds has been firmer.
There has been an Improvement in the
old and new AZ per cent and per cent
refunding OBLIGATIONS Of the electric
IirFt and power companies At the
same time money conditions, as re-
flected. in lower rates for acceptances
and the reduction in the rate on time
deposits by the New York Clearing
House banks, have established more
satisfactory basis for the emission OF
new loans.
Washington situation clears up banking
groups that have been Withholding IS
sues Of public utility bonds viii bring
them out on q substantial scale. There
are also in prospect some additional OF
ferings of public utility preferred stocks.
Better Conditions Abroad.
International bankers have been en-.
couraged the past week by the change
in financial sentiment in France and by
the decided Improvement in political
conditions in Germany. France has
finally reached q decision with respect
to releasing credits to some Of her po-
litical allies in Europe and Is now ne
gotiating for q credit to Germany. The
BrueninR victory in the Reichstag Sat-
urday viii remove much Of the political
objection that has blocked all efforts for
such a loan to Germany since the cleo
tons last September. 1t Is not improba-
BILE that during 1891 France may be
more important factor in German
financing than the United States.
An interesting incident in interna.
tional finance today was the sale BY
! Russia Of SIS, 900 900 Of gold to the Bank
Of Germany. This comes after other
small exports by the Soviet government,
which have found their way to Berlin.
(CopyriEht. 1s31.)