Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-01
DOUBLE PRICE SET
FOR LUCKY BONDS
Foreign Securities Selling for
$1,76O,0O0 to Bring
$3,55O,00O.
Rx the Associated pr..a.

By the Associated Press.
NEW YORK, October l.7-Holders of
foreign bonds that would bring only
Sl,76O, 900 in the open market can re-
deem them today for a total Of So
$4,000.
These bonds have been drawn by lot
Tor redemption at par under sinking
lund provisions. Some fortunate hold
ers of drawn 1slanbers can redeem their
bonds for cash amounting to two. three,
four and even five times what they
could get for them in the open market.
even though the bonds are virtually all
payable In gold dollars. and not directly
affected by fluctuations OF other cur
rencies.
Bankers for the Republic of Brazil
are redeeming &4l3.500 OF that coun-
try's bonds at par, while recent ma,ke.
prices have been around one-ffth OF
that. This extreme case is due in part
to the fact that Brazil has announced
that this redemption will be the last
for an indefinite period or until eco
NOiANltAOAAo lIiIpIONC III Indt
Several other issues. in which there
have been no official suggestions OF de-
fault. are selling at less than half their
redemption values. These low prices
renect in considerable degree uncer-
tainty over their future. and forced
lettiSoning of holdings through need OF
funds.
Americans Little Interested.
Holders of 6Sl bonds of the free
state OF Prussia will be able to redeem
them on October IS at 81 900 per bond
OF that par value. while they are nov
selling around one third of that Po-
lands per cent issue has thus far
been regularly drawn by lot for re-
demption at somewhat above par to
the extent OF per cent of the entire
issue annually. but the bonds are quoted
In the market at little more than half
Of par.
In the more palmy days OF finance
some spectators. particularly in Lon
don, made a practice OF buying a few
depressed bonds just before drawings in
the hope OF holding a few lucky num-
berS
Americans have never shown much
interest in this sort of speculation and
in the these times traders in London
have little heart for it. AS a matter of
fact, the chance OF drawing a number
is long one. for semi-annual draw
ings usually amount to only one or
one-half OF l per cent of the issue
Many bonds are not retired by draw
ings. Some governments. in setting
up the provisions of a sinking fund,
have been willing to acknowledge that
their issue may at times fall below par
and have arranged to take advantage Of
any bargain prices at which the Ger
man Dawes and Young plan issues may
be acquired in the open market for re-
tirement for sinking fund purposes
The German government can acquire
bonds OF its Young plan issue currently
at less than half Of par.
Low Price Is Benefit.
Naturally. 1t is only the holder of a
depressed issue that likes to have his
bono drawn for redemption at par In
normal times it is bad rather than good
fortune to have a bond Of high rating
and liberal yield drawn at this time.
For instance. $3.50. 900 par value of Nord
Railway Of France 6la per cents is be-
ing redeemed at par today. The cur
rent open market price is around par,
but has recently been several points
above.
The following table shows the amount
OF foreign bonds TAT par which have
been drawn for redemption today. to-
gether with the redemption price per
bond Of $1,000 par value, in contrast
to recent market quotations: