Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-23
BONDS DEPRESSED
IN ACTIVE TRADING
Lower Opening Is Followed
by Renewed Selling
! of Rails.
BY F. H. RICHARDSON.
Special Dispatch to The Star.

Special DlSphJCn 10 Inc star.
NEW YORK, November 23.-With
very few exceptions listed bonds de-
clined today in moderately active trad
ing.
The market opened lower in COM
pany with stock prices. Railroad bonds
were heavy as result of the refusal of
the railroad unions to accept a wage
cut. There was an element in Wall
Street, however, that leaned to the be-
lief that the rejection of a wage reduc-
ton has clarified the situation and that
something concrete might now be ex-
pected from the Interstate Commerce
Commission.
AS a result the declines in the rail
list we're generally held within con-
sentative limits. Losses ranged from %
to l point in Rock Island refunding As,
Illinois Central 434s, Frisco 41as, St.
Paul IS, Allegheny IS and Chicago g.
Eastern Illinois IS. Nickel Plate Abs
and IS dropped 2 points. The latter
roads net income for the first 10
months of 1881 was equal to Slip a
share of per cent preferred against
1927 per share of common in 1880.
Pere Marquette bonds were heavy, as
the road reported a reduction in 10
months net income from $4,463,713 in
1880 to ,265 this year.
Atchison General As and Union Pacific
first Is, were lower with prime utilities
like American Telephone SIS and Con-
solidated Gas 512s. United States Gov
ernments we're off "a to l point and
there was also an easing in high-grade
municipals. The market for these de-
scriptions was disturbed by reports that
the United States Treasury plans to
sell 81 600, 100000 of long-term bonds in
December to meet maturing notes and
certificates. Market opinion Is that
such an amount of bonds could not be
distributed at less than 3% per cent
rate for 1O-year bonds. Consequently
there was a tendency to sell outstand-
ing long-term Treasures.
Canadian bonds were fractlonally
lower in most cases, rejecting IL per
cent discount for Canadian exchange
and the competitive pressure OF the Ca
madam governments offering today OF
$150,000,000 in 5 and 10 year 5s priced
to yield 5.13 to SIT per cent. The bonds
were reported moving out quickly, with
many American corporations and 1ndi-
viduals purchasing them with American
currency in order to take advantage OF
the fat yields-6.81 to 815 per cent
available at New York prices. These
purchases, of course, presuppose the
return to parity of the Canadian dollar.
Germany's new economy plan, which
involves the reduction Of wages and
prices in Germany, was not particular
ly we'll received. German 512s and
Dawes reparations Is were both lower.
So were German Central Bank Issues
and German municipals. Wall Street
felt that the opposition of Labor Un-
ions and politicians might cause new
crisis in Germany.
japanese bonds we're l to 3 points
lower. in spite of the fact that hope
full reports were still emanating from
Paris, Washington and Geneva with
respect to the Manchurian situation.
South Americans were little changed.
Bonds were lower in fairly active
trading at the opening A weaker stock
market and the failure of the rail-
roads to come to wage agreement
with employees caused selling of bonds.
Issues like Erie SIS, Nickel Plate 4laS,
Frisco 412s and Illinois Central 434s were
off from y to l point 1ndustrials also
were lower. with small losses in Youngs-
town Sheet & Tube IS, Inland Steel
4laS, Standard Oil of New Jersey IS
and General Motors Acceptance IS.
Prime utilities such as American Tel
ephone SIS were firm.
Foreign dollar bonds were inclined
to sag. Japan 61As lost point, as did
German Central Bank issues. South
Americans were little changed.