Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-13
INVESTMENT BOND
MARKET IS LOWER
Prices Drop During Week to
Smallest Figure Since
1921 Depression.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. September 12-In two
respects the investment market this
week lived up to the expectations enter
tanned for 1t once Labor day was passed.
Trading was more active and the new
capital market showed more signs of
life than it has done in months.
In all other respects the week was
disappointing. Bond prices dropped to
their lowest levels since the 1920-l92l
depression. Even United States Gov
eminent bonds were severely shaken by
the disclosure that Secretary MELONS
$500, 900 offering of 24-year IS had
been oversubscribed by a mere Is per
cent. against the $50 per cent oyer
subscription of the last long term
Treasury offering. In the foreign de-
partment the drastic nature of Chan
cellor Snowden's new tax proposals in
England left a complex mixture of
anxiety, fear and peSsimism over the
British outlook German bonds broke
sharply to fresh lows. Other sections
OF the foreign list were unsettled.
Index Drops.
AS the week ended. however, there
were signs that the heavy pressure on
stocks had been lifted and that the
WIN hCb was dDSOl Ulklk nCaVv
offerings with less difficulty than it had
in midweek Meanwhile Standard
Statistics index of 60 bonds had Drop
ped under 81 on Friday. This was
nearly points under the years high
made in January, and more than 10
points under the 1880 high, and it
recorded loss of full point in the
week. In other words, in the market
sessions since Labor day fully $I,OOO.-
10000 in bond market values has been
wiped out.
The volume OF trading in bonds on
the New York Stock Exchange aver
aged about 100000 a day for the
week, against less than $4,000, 900
daily in recent weeks.
Domestic railroad bonds were swept
provement of the week before, and
more. Conservative issues, such as
Northern Pacific IS and IS, Atchison
general As. West Shore guaranteed
Is and Union Pacific first As bowed
to the pressure. Junior descriptions
were thrown on the market for what
they would bring. The index of 90
railroad bonds dropped whole points
in the week.
1ndustrials dropped with the rails
Sharp dips characterized the oil
group, amusement company obliga-
tions. Steel Corporation bonds and
those of motor car companies.
Seek Lonk- term Paper
At the same time there was a rush
of investors to the refuge of high
grade municipal and, after the market
had duly recognized the disappointing
subscriptions to the new Treasury 3's
to long-term United States Govern
ments. Treasury 33ss, which had
lost about point on Thursday, re-
covered virtually the whole ground on
Friday. The new IS, which were
quoted as low as 90 1882 bid, moved
up close to par. Even so, it was the
first Treasury issue in years to sell
at a discount. New York State was
promised, in current quotations for
outstanding bonds, record price for
the $4,000, 900 issue to be sold this
week.
In the foreign department, the
weakest group was the Germans.
Young Plan 51as and Dawes Repara-
tons rs were both pushed down to
new lows, of 6 and points, respec-
lively, in single market session. The
only apparent factors in the selling
were sharp dip in reichsmarks and
rumors of banking difficulties in the
Scandinavian countries and Holland,
where German descriptions constitute
an important part of investment port
folios. Near the weekend both issues
firmed to prices 3 and 4 points above
the lows.
(Copyright. 1917