Evening star., 1931-12-18
BONDS STRENGTHEN.
ION BETTER BUYING.
U. S. Long-Term Issues
Prove Exception to
General Trend.
BY F. H. RICHARDSON.

opeClal DlSpatch 10 The star.
NEW YORK, December 18-The
bond market was definitely stronger to-
day, with the exception of United States
Government long-term issues Trading
was in only moderate proportions.
The opening was irregular, but actu-
ally the market was much stronger
than 1t appeared from the tape, chiefly
because the supply of open offerings
had been checked and offering prices
we're held we'll above the previous
closing quotations. For instance, New
York Central 6S, a short-term issue,
sold at "a, up point on the day. Then
the bonds stood at 74i2 bid SO asked
This was typical of the entire domestic
list and indicated the reason for the
tapering off in the volume of trading
The congressional committees action
on the moratorium and debts was about
as the market here expected, but it
proved to be a beariSh influence on the
London market Sterling slumped near
ly 8 points and reVerberationS were felt
here in the sharp declines in British
SIS, Australian and Canadian Securi-
ties. The latter groups later flrmed with
the domestic list.
The Street had reports that a strong
bond pool had been formed While there
d,
manner in which many speculative is
sues in the railroad and industrial lists
rallied were taken as evidence of some
new basis for support Advances of TO
4 points were common in the rails Al
leghany SIS of l949 gained points
Baltimore & Ohio refunding SIS jumped
3 points. and so did Rock Island re-
funding As. Erie SIS of 1915. New York
Central refunding Ais and Nickel
Plate 6s Similar gains were scored by
long list OF issues. including AtchisOu
general As. Boston L Maine SIS, Chi
cago Great Western As ST Paul IS.
Chicago Northwestern 4a.s. Illinois
Central 4a.s. MisSouri-PaCifc general
As and SIS, Frisco SIS, Southern Pa
cifc AIS and Pennsylvania general
4 IS. Every class of carrier obligation
was included in this group.
In the utilities the bast gains were
made BY Western Union 2s up 3l2
points; International Telephone con-
vertibleS. up points; American Tele-
Consolidated Gas 4 IS and SIPS, Inter-
Borough refunding IS. Brooklyn Man
haitian Transit 6s, Phia &elphia Co SIS
and Postal Telegraph IS. InduStriais
such AS Dodge Brothers 6s. Texas Cor
poration SIS. American Smelling 5s In
tenational Match 5s National Steel IS
and Youngstown Sheet & Tube 5s also
improved
German dollar bonds were somewhat
improved, both the Young Plan 51os
and the Dawes RcparatiOns Is gaining
more than point at one time. Ger
man Municipals followed them into
higher ground Colombian and Brazil
ian issues were better
Reports from Berlin that the ReiChs-
bank had refused permission to several
Gefman firms drsirous OF supporting
ther bonds in the New York market
because OF the critical situation in re-
gard to foreign exchange there. unset
tied the foreign list to a small degree,
Municipal bonds were flrmer except
where there was some liquidation of
closed bank portfolios. This same in
fuence was responsible for new low
prices in Liberty 3'.s. Liberty Fourth
AS and some of the recently issued
Treasury descriptions.
The market was still affected by large
offerings OF United States Government
bonds. but the price of these descrip-
lions were f1rmer than in the last hour
OF Thursdays trading. Liberty Fourth
as, which broke par on THURSDAY to-
Cay were turned over in sizeable blocks
al 100.
Foreign dollar bonds were irregular.
Weakness III sterling was reflected in a
crop of nearly point in British 2s.
Canadians were somewhat lower also.
because of the drop in sterling. but
Germans were better and the South
American list ha'' a firmer tone. In
the domestic list, Atchison general As
were of point, but other rails were
firm 1ndustrials and utilities were in
active.