Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-26
BONDS DEPRESSED
IN HEAVY SELLING
Market Recedes After Firm
0pening-Foreign List
Is Irregular.
BY F. H. RICHARDSON.

Special Dispatch to The Star.
NEW YORK, October 26.-After q
firm to higher opening the bond
market met heavy offerings today and
prices declined, sharply in the case OF
domestic rails and industrialS and
more conServatively in high-grade
utilities. Foreign dollar bonds were
mighty irregular, with some groups
showing gains of to points and
others, notably the Germans, of to
4 points.
A declining stock market undermined
the support in bonds. as Wall Street
showed some disappointment over the
results OF the Hoover-Laval conference.
rms served to bring about profit taking
by those who had followed the market
up from its recent lows.
IN addition there was q further
Tightening Of open market money rates,
PreSaglng an advance in the New York
FEDERAL Reserve rediscount rate this
week. Even the slightest hint of such
IntentlCn was enough to send United
states Government bonds down p to
= point and later these losses were ex-
tended
At the same time prime corporation
descriptions dipped fractionally. Atchi-
son Gcneral As sold close to their low
OF the year. American Telephone SIS
were fractionally off. So were Phila-
delphia Co. SIS, New York Telephone
4l2s and Consolidated Gas obligaticn ms.
Inc market was firm at the opening
In the absence of anything conStruc-
tive as yet in the shape of aid for the
railroads, holders of speculative carrier
bonds paid more attention to the cur
rent patch OF earnings reports and. as
= result, there was increased liquida-
ton in the issues of the New Haven.
81. Louls-San Francisco, Erie, Nickel
Plate, Allegheny Corporation, st. Paul.
wabash, Western Maryland, Chicago
Great western, Chicago & Northwest
ern, Illinois Central, Missouri
Pennsylvania and New York Central
Losses ranged from fractions to more
than 3 points.
Industrials were depressed by the
weakness in stocks. youngstown Sheet
q Tube IS, Armour of Delaware SIS,
Hudson Coal SIS, Sinclair Oil rs. Texas
Corporation SIS and Vanadium SIS ali
sold off point or so.
The best gains in the foreign list
were IN some of the defaulted South
American issues, such as Bolivia Is and
rs, Peru IS and Brazilian governments
Argentine IS advanced l to points.
Uruguay 6s were higher. Brazilians
were LIH increased exports combined
with firmer commodity prices stimu-
lated this buying. Australians were
firm.
japanese issues were off 2 to 3 points
on the continued impasse between
Toxic and Geneva. This had a de-
pressing effect also, on other Far East
obligations. German bonds were 3 to
points lower. italian issues lost a
little ground. Austrians were lower.
French bonds we're firm
The foreign list was irregular, most
issues advancing from fractions to a
point, but the Brazilian and German
groups were both sharply lower. Do
nestle issues were little changed.
Junior railroad descriptions, such as
MisSouri-Pacif1c SIS, Erie SIS and Wabash
IS, were unchanged. Some industrials
were higher. notably the amusements.
including Paramount Publix 51as, and
the oils, including Texas Corpora
ton SIS.
Initial trading was in small volume,
the market having hesitant tone
while waiting to see how other ex-
changes would accept the outcome of
the Hoover-Laval talks. High-grade
bonds were firm