Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-21
BONDS ARE LOWER;
us. ISSUES DECLINE
Wide Breaks in Foreign Dol
lar Securities Lead
Way in Drop.
BY r. III. RICHARDSON.
, | nirnatch IN The star

NEW YORK. May 2l.--Bonds moved
lower today. with further wide breaks
in foreign dollar bonds, especially the
Chilean group fractional declines in
the high grade group of domestic cor
poration bonds, end a sudden reversal
OF the upward trend in United States
Government bonds.
The selling of Governments was in
teresting because of the width of the
declines-from 5-32 TO 12-32-when
contrasted with the small size of the
offerings Government bond traders
said the market was quiet in these
issues for the first time in weeks, and
banks had taken advantage OF the dull
ness to sell some treasures at their
highest prices in years. on the theory
that they will be able to buy them
back at lower levels 1t would be
stretching the facts however, to say
that it marked any new diversion OF
funds to other securities.
Trading was active during the morn
ing session. notably in the foreign list.
chile 6s were off 3 to 6 points. Bra
zilians continued to decline, after re-
covering somewhat from their previous
lows. and Argentine 6s were off to 3
points for all maturities. Ordinarily
this liquidation could be attributed 10
the disoTganiZed state of commodity
markets in South America and result
ant political uncertainty. But in view
of the unsettlement in all securities
markets it was probably due as much to
the desire to cash everything except ap-
Solutely safe low yielding investments.
Announcement that Australia mad
disposed Of all but 10000, 900 bushels Of
its 1880 wheat crop-a small amount
compared with the original exportabie
surplus of 150,000,000 bushels-was re-
f1ected in a firmer tone in Australia,
New South Wales, Queensland, Brisbane,
Sydney and other commonwealth obi
cations.
German issues continued heavy, re-
f1ccting the impaSSe in the Geneva
negotiations and London opinions that
Germany will require help with the
June service on the Young plan loan.
In the domestic section, junior carrier
bonds that have in the past few days
dropped to their lowest levels In years,
were steady at prices slightly above the
bottom. Missouri Pacific General As.
Frisco 4L2s. Denver & Rio GRANGE
Western SIS and International Great
Northern adjustments were active at
fractional declines. Nickel plate AIS,
New York Central 4l2s, Southern Pa
cific 4las, Pennsylvania 4l4s, Baltimore
e. Ohio 412s of 1860 and Rock Island
issues were fractionally lower.
The Rock Island road has asked the
Interstate Commerce Commission for
authority to pledge $15,037 900 of bonds
now held in the treasury as collateral
security for short term notes. The ap-
plication stated that because OF the de-
preston the road had to provide funds
from other sources than earnings for
additions and betterments. st. Louis
Southwestern consolidated As dropped
to IS, & new bottom.
In prime corporation issues the de-
clines we're unimportant. American
Telephone SIS dropped % at one time
and then recovered. Atchison general
As were firm. Chesapeake Corporation
SIS were off a small fraction, as were
Standard Oil of New York 4l2s.
The continued demand for prime in
vestments was shown by the offering
today Of 100000 shares of Public Serv-
ice Electric e. Gas Co. IS cumulative
preferred stock at $i0350 a share. A
few minutes after offering it was re-
ported at S10450 bid
(Copyright, 1917