Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-18
AUSTRALIAN BONDS
SHOW HEAVY TONE
Proposal to Abandon Gold
Standards Declared Cause
of Recent Price Decline.
BY F. Fl. RICHARDSON.
Special Dispatch to The Star.

special DlSpatcn 10 Inc star.
NEW YORK, February 49, - Bond
trading today was marked by extreme
heavinesS in Australian federal anrl
provincial securities. There was no pcG
on which to hang responsibility for the
heavy liquidation except reports from
London that New South Wales per-
sistence in holding eout for abandon
ment OF the gold standard and a par
tial reputation of debt service was
now carrying more weight.
At any rate, Australian common
wealth bonds, the issues of New South
Wales. Queensland and the cities of
Sydney and Brisbane were all down
from / to over 4 points.
Houses that issued part of these flo
tationS i'll this market, some as recently
as last year. when the Brisbane 6s were
brought out at 96l2 could not explain
the sudden break. One dealer prof
fered the suggestion that there had
been a large selling order from London.
The Brisbane IS, incidentally, are now
selling at 30-point discount and on
a 10 per cent yield basis
Time money rates were unchanged.
Volume was somewhat heavier than on
Tuesday.
Apart from the break in Australian
issues, the markst was firm United
States Government long term bonds
were all fractionally better as more of
the uncertainty regarding what tinanc-
ing the Treasury will have to do in
regard to the bonus bill was cleared
away.
At the same time corporation issues
held firmly to their high levels, with
brisk inquiry in evidence for American
Telephone SIS of both 1860 and 1865,
Atchison General As, Atlantic Coast
Line first IS, Buffalo General Electric
4l2s, Canadian National Railways SIS,
Chesapeake &c Ohio General AIS, Con-
solidated Gas 5l2s, Duquesne Light
412s, Great Northern rs, National
Dairy Products 81 AS, National Steel SIS,
Nickel Plate AIS, New Haven AIS,
Northern Pacific Is, Pennsylvania 434s,
Southern Pacific 4las of both 1868 and
1869, Standard Oil of New York 412s,
Union Pacific first As, Western Union
SIS and youngstown Sheet & Tube SIS.
A rising stock market proved an eff
fective litter of junior bond values.
There was strong demand for Dodge
Bros. 6s. The Chrysler report, is
sued today. showed cash and market
able securities of over Sal 100000 and
the only funded debt of the company
consists of S48000,000 of Dodge Bros.
s per cent debentures On the showing
of cash and securities alone there is
$3.50 behind each 81 900 bond.
American Natural Gas CTS, one of
the investment markets most spectac-
ular performers, exhibited strength again
after its weakness of week ago. This
conceded with gains in the company's
common and preferred stocks. The COM
pany through its subsidiary. Oklahoma
Natural Gas, is involved in the rate
investigation there, but only to lesser
PXfnrf ut
concerns controlled by Tri-Utilities
Corporation it has shown increased sales
and net earnings in recent months.
Warner Bros. 6s. Shubert IS.
LoeW's IS and other amusement COM
pany issues were strong with their
stocks. Indiana Limestone 6s gained
over points. Many of the second
and third grade rails discounted con-
tinued interest payments.