Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-21
INVESTMENT BOND PRICES HOLD
STEADY DURING WEEKS TRADING
special.pispateh 70 rh. star.

SpeciarDispatch TO The Star
NEW YORK, June 20.--Though the
week saw none Of the unresisting price
declines that have marked the bond
market since early in the year and the
tone was firner In general, it was APP
parent from the decision manifested
by the junior list that previous esti-
mates as to the inminency of the re-
covery in bonds will have to be revised
Measured by the price averages the
Investment market ended the week just
where 1t started. Volume for This, the
dull season Of the year. was well main
tanned owing chiefly TO the still brisk
demand for high-grade bonds.
Junior Rail List.
Junior railroad bonds responded en-
phatlcaly early in the week TO reports
that the financial problems Of the St.
Louls-San Francisco Railroad and the
81, Louis southwestern had been solved
dated per cent of the latter road
made one Of the most dramatic recov-
cries IN the current market, advancing
over rs points from their recent low.
But the response of other junior issues
such as ST. Paul IS, Erie SIS and Mis-
aouri-Pacif1c BIS was not commensurate.
This group Of railroad bonds, selling
on yield basis ranging from $50 TO
over per cent, does not reflect any
hope OF improvement in carrier earn
ings. Nor does 1t discount any antici-
patton that the Interstate Commerce
Commission will grant the application
OF the railroads for is per cent in
crease in freight rates.
However, some comfort was to be
derived from the highly satisfactory
price levels of prime corporation issues
ana the renewed activity in the new
capital market. New bonds put out
during the week amounted TO SS7,265,-
900. compared with only $7,164, 900 last
week and $i33, 500 in the same week
OF 1880. Some new issues in prospect
are OF nature that could not COM
mand a market few weeks ago, and
dealers report that investors funds are
turning more to cond-grade issues
This was evidenced by sharp upturns
IN Few junior industrials, such as
Armour of Delaware SIS. Pathe Ex-
change rs and McKesSon a. Robbins
5l2 per cent debentures.
another hint that buyers of bonds
are not attracted by the small Yields
to be secured in the high-grade market
was the general marking down of mu-
nicipal bonds and, to lesser extent, of
United States Governments. Plans for
new financing of commonwealth Edi-
son, reported TO be considering a $780,
600, 900 bond Offering: of Public Service
Electric & Gas, Cleveland Electric IL
Illuminating, New York Telephone, Pa
ctflc Power d Light and other corpora
tons, shew that bankers are evincing
greater interest in getting surplus
funds back into industry. Several
American banking groups have been
negotiating for large issue of Danish
dollar bonds.
German Bonds.
On the other hand, preliminary rail
earnings for June have reversed the
previously held view that the decline
| in carrier earnings had been checked
| The Bureau of Labors wholesale price
index dropped to another new low on
Friday. And both British and Ameri-
can import and export figures were far
from cheerful. Until some of these de-
pressing factors are removed, little can
be expected from the bond market
In regard to the foreign situation, il
Is interesting TO note that Germany,
bonds today are in the same position
that Frances obligations were severa
years ago. Those who have sold theil
bonds and forced the Young plan sig.
down to a S0-point discount argue thai
Germany is in for another ruinous de.
probation OF her currency, that repudia.