Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-01
BUYING MOVEMENT.
|. LIFTS BOND PRICES
Unusual Strength Of Brazil
Is and IS Feature
Days Market.
BY F. H. RICHARDSON.

Special Dispatch to The Star.
NEW YORK, May bonds ad-
vanced in broad buying movement
today.
The feature was the unusual strength
Of Brazil rs and IS, on which interest
and sinking fund service due June
has been received in New York. The
Is, which are an issue OF the Brazil
Central Railway guaranteed by the Bra.
lillian government, jumped points ,tC
q level is points above their recent low
The IS opened up q point at 81 anc
then leaped another points.
The strength affected other Bra.
zilians, such as Brazil 612s, Sac Paulc
rs, Pernambuco Is, MinaS Geraes 6las
and Rio de Janeiro 61as, but the gains
were checked by advices from London
that Bahia, Brazil, had suspended both
interest and sinking fund payments or
sterling loan. Bahia has no dollar
loans outstanding.
The advance on Brazil Is and IS was
WIDER because OF the fact that statiSti-
cal services have recently reduced
ratings on Brazilian bonds and there
has been a strong intimation that in.
terest payments would not be met
however, Wall Street has much conf
dence in Finance Minister Whitaker of
president Vargas government at Rio
senior Whitaker was formerly an indus
tr1aliSt OF Sac Paulo and Is considered
one OF the most constructive f1nancierS
In Brazil.
Otto Neimeyer, who is still in Brazil
mas not presented any recommendations
at least publicly, but 1t Is understood
tnat with the recent improvement In
the coffee market there is good chance
0NIf Of H1ax
rent troubles without having to resort
to q moratorium.
Among other South Americans, b.
gotta Ss gained over points, while
uruguay IS and IS were fractionally
lower. Argentine IS advanced frac-
tionally to point. Colombia Mortgage
Bank rs were up 21a points. Other Is
sues were dull or unchanged. Euro
peans were quiet, with small gains in
German issues and the high-grade de-
Scriptions Of France, Belgium and Great
Britain.
Domestic bonds were stronger all
around, bolstered by q continued adj
vance In stocks and an oversold condi-
ton In many junior issues. Goodrich
Is, for instance, recovered 3h points
on the theory that, while the company
has recently had heavy losses, the bonds
are unjustiflably low at prices reflect
ing QouDtS as TO interest payments. In
terborough IS, General Theaters Equip
ment IS, Sinclair Oil Is. and Warner
Brothers Pictures 6s made good gains
United States Rubber SIS dropped 8
points, but later recovered all Of the
loss with active bidding in thin mar
ket. Utilities Power g. Light SIPS were
over a point higher. High-grade public
utilities and industrials were unchanged
to shade higher.
In the railroad list the advances were
somewhat more conservative, but NO
less unanimous. Atchison General As
reached up again toward par, a price
they have not touched since 1912. Other
high-grade issues, like Northern Pacific
As, Norfolk & Western As, Chicago, Bur-
lington & Quincy As and Great North
ern Is were also at their best prices
Of the movement. The Norfolk & West
ern announced today that $7,235, 900 OF
50-year 6 per cent bonds will be paid
of today. The money was provided out
Of the treasury Of the road Fixed
charges will be reduced $434,1O0 a year
by retirement of the bonds.
Junior railroad bonds we're 1 to 8
points higher, the most active being
Frisco 42s, Missouri Pacific general As
and SIS, Erie IS, International Great
Northern adjustments and Chicago &,
Northwestern 4As.
(CopyriRht. Ioafl