Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-13
BOND PRICES SAG
ON NEW OFFERINGS
Market RecedeS Under an
Increase in Financing
Operations.
BY F. H. RICHARDSON.

SpeCldl DISPATCH 10 1ne quar-.
NEW YORK, January 13.-Bond
prices moved downward today at a rate
comparable with the speed of their adj
vance last week The market had re-
bounded too recently from its lowest
levels in over six years to be able to
withstand the onslaught of new issues
that featured today and yesterday. Over
SIPS, 100000 of new 1otations in two
days might be expected to have seri-
Gus effect on convaleScent market.
The declines ranged throughout listed
bonds, being confined to fractions in
the high-grade, but extending from /
to 8 points in junior domestic and for
eign dollar bonds. Trading was in small
volume, indicating the reluctance of in
vestors to buy on the scale-down. The
distribution of nsw offerings slowed up
considerably when the glut became ap-
parent.
More Issues Due.
After Mondays disappointing decline
some recovery was looked for and at
the opening prices did remain firm or
advanced fractionally. But with the
announcement of S50000,000 new In
ternational Match SIS, along with S19,-
100000 other new bonds, prices dropped.
Large holders of fixed income secu-
rites bore in mind the fact that at
least $250,000,000 in new public utility
bonds is still hanging over the mar
ket. OF this amount. $50,000,000 of
Columbia Gas IS are expected on We'd
nesday, $l00,000,000 Consolidated Gas
bonds are ready any time, and $780,
5000 PENNSYLVANIA Power & Light
obligations are also awaiting a suitable
market. With such flotations awaiting
advances, speculative holders of issues
bought at lower levels took their profits.
The individual feature was the drop
of over points in International Match
SIS of 1947. This is debenture bond
not convertible into stock and was Of
fered in 1927 at 95i2. The new issue
today is convertible into the company's
participating preference stock at the
rate of 1915 shares for each 81 900 deb
enture. The shares were quoted today
just above SIS. The decline in the old
bonds was naturally attributed to
switching based on the theory that the
conversion privilege, though out of line
at the offering price of SO. was an at
tractive feature
Junior bonds that dropped from to
st. Paul S. Erie SIS, Frisco AIS, south
ern Railway As, Anglo-Chilean Nitrate
U.s. Goodrich 6s and Richfield Oil of
California IS. Convertibles that had
similar losses were American Telephone
AIS, Atchison 4ias, General Theaters
Equipment IS, Texas Corporation SIS
and Cities Service SIS of 1850.
High-grade issues were affected also,
but to lesser extent Columbia Gas IS
dropped over points in the face of the
announcement of the new $4,000, 900
issue. There were small losses in Great
Northern rs, Northern Pacific As, South
ern Pacific AIS, Duquesne Light AIS,
New York Telephone 412s, Philadelphia
Co.'S SIS and Standard Oil of New Jer-
sey IS.
Foreign List.
Foreign dollar bonds were quieter and
their trend was irregular. German gov
eminent 512s were heavily sold and
sagged nearly points. Other German
bonds dropped fractionally. South
Americans had strong tone. This fol-
lowed an advance in these bonds in
London based on the announcement
that Brazil had appealed to the Bank
of England for help in Strengthening out
the Rio governments financial affairs.