Evening star., 1931-12-07
BONDS ARE HIGHER
ON BETTER BUYING
Foreign Issues Are Still Af-
fected by Uncertain PoIiti-
cal Conditions.
BY r. HI. RICHARDSON.

| Special Dispatch to The Star.
NEW YORK, December THE bond
market advanced narrowly on a broad
front today. Trading was in fair
volume.
In seeking to appraise week end de-
velopments, the market opened firm and
then turned duh for a time. Adolf
Hitlers emergence as a supporter OF
Germany'S international credit position
virtually removed one factor that has
long affected German dollar ponds. On
the other hand, Frances indifference tc
the arms limitation conference next
| Spring and the now widely held belief
that the French government is unlikely
to recede from its position in regard tC
the priority of reparationS payments
kept the improvement in German issues
in check
Young Plan 512s and Dawes Repara-
tions Is were firm at slight net gains
German Central Bank issues improved
about points. German muniCipals
had small gains. Industrials, such as
German General Electric IS, United
Steelworks 612s and Sieman & Halshe
6i2s, also gained
Sterling quotations fell to new low
| on the movement at 3.24l2 against the
dollar. Canadian exchange dropped to
more than IS per cent discount
These declines were paralleled by heavi-
ness in British 5 l2S and in Canadian
government bonds. The losses. how
ever, were subsequently retraCed
Most Europeans improved with the
Germans Argentine issues continued
their advance Other South Americans
were firm. japanese descriptions were
steady.
The eve of President Hoover's mes
sage to Congress found steady tone
in domestic bonds. The certainty that
his pronouncement concerning eco
nomic conditions will be constructive
caused break in the selling of junior
securities, and the favorable reception
of the new Treasury financing today
helped the high-grade list.
| Railroad bonds of the second and
third grades gained from l to 3 points
! on the supposition that Congress will
| organize a pool to help the railroads, as
was done in war time. Issues like Erie
| SIS, Nickel Plate 512s Missouri Pacific
| SIS, St. Paul SIS, Chicago & Northwestern
| 4%s, Rock Island 413s, Frisco Prior
Lien As. and Allegheny SIS had good
gains New York Central 6s advanced
points. The Prime Atchison General
! As and Norfolk 6y Western 4s gained
! Utility bonds like American Telephone
| SIS, and Utah Power S5 Light 5s, were
! firm with municipals and governments
| United States Government long term
bonds gained from 4-32 to 26-32 on the
| day The best gains were in the re-
Gently issued IS and 3lss.
Secretary Melons offering of 81 300.
| 100000 was the largest block of new
| Government securities since the war
All Of it was of a Short-term character
Of the total, $500 100000 was in one
year 3Hs and the rest in the form o.
| s and 8 month certificates at 234 anc
3 per cent. The market believed a rapiC
oversubscription assured, with the 3A'
and IS going to a small premium ane
| the 234 remaining about at par.
Industrial bonds were again inactive
| There were small advances in Phila.
delphia & Reading Coal and Iron 6s
Lorillard SIS, International Match SIS anc
American Sugar Refining IS.
| Bonds were firm at the opening
| In the German group Saturdays ad-
vance was resumed to degree, though
! trading was not in large volume. Dawes
Reparations rs were fractionally higher
| Young Plan 512s were firm. There were
declines in British 512s, Japanese 612s
and some of the South American group
! These drops were small. however, and
! we're offset by strength in Toxic 5las
Argentine 6s and Canadian issues
| Railroad bonds were nearly all higher
Nickel Plate 4l2s gained a point. Sc
! cid Chicago & Northwestern 434s
| Pennsylvania SIS advanced points. H.
| dustrials and utilities we're firm. The
| market viewed favorably political de-
| Velopments at home and abroad.