Evening star., 1931-12-13
INVESTMENT BOND
DEMAND IS SMALL
Market Sinks Further During
Week on Extremely Light
Offerings.
Special Dispatch to The Star.

opecldi Dlspatcn TO Tne star.
NEW YORK, December 12.-With a.
3-point decline in the price level of the
bond market this week, a further de-
probation of $750,0o0,000 on the s50,-
600 200, 900 par value of bonds listed on
the New York Stock Exchange was in
dicated. The week eliminated in the
heaviest volume of offerings with which
| the exchange has had to cope this year,
and the pressure apparently will con-
| tinue until the December tax selling is
ended.
Every group of bonds shown by
Standard Statistics index of so bonds
was at new low as the week closed
Twenty industrial bonds showed a drop
of % points. Twenty railroad obliga-
tons were 4.8 points lower. Twenty
utility issues were off 28 points and
the so issues together were down 81
points.
Buyers Are Few.
Investors brought large blocks of
securities to the market, only to find
gaps of 10 to Is points between bid
and asked prices. This had the effect
of increasing the desire to sell-a sign
of hysteria. Many snapped up the
chance to sell at lower prices, as 1t
would mean writing off larger sums on
OAASAI AlSCIl1C laA lCJuIllS.
The bond ticker printed endless quo
tations of issues offered at a certain
price. These prices were reduced hour
after hour, some of them as much as
10 to Is points before sale was effected.
One issue, for instance-Boston &
Maine SIS of 1955-was offered to the
amount of $1,000 at SO, then at ST, then
at 66 and so on until the price reached
81, at which level a sale was made. This
represented net decline of 1874 points
in bond still legal for investment by
savings banks and trust funds in New
York State.
This went on throughout the list, not
only in rail bonds-many of which are
at record low prices-but in industrials
and utilities.
The omission of dividends by the
New York Central, the New Haven, the
Mlssouri-Pacif1c and other railroads
and by industrial corporations, rumors
OF strike threats growing out of the
wage conference at Chicago, political
controversies accompanying the recon-
Venlng of Congress and proposals of
higher taxes added momentum to the
selling.
AS the week ended more constructive
reports appeared. washington, follow
ing President Hoover's statement on for
eign policy, decided to call representa-
tiyes Of the large American banks to
clarity Americas private and public
position in regard to foreign debts. The
New York State Joint Committee on
Banking agreed to submit proposal to
the Legislature to consider all rail bonds
legal that held such status on January
!, 1881, except in the case of roads
that went into receiverships.
Foreign Situation.
The situation abroad continued to
hold attention. Britain took some heart
from Chancellor Chamberlain's promise
that there would be no British budget
deficit this year, and on Friday the
London market had a better tone after
four days of continuous liquidation.
The resignation of the Japanese
cabinet appeared to reflect dissatisfac-
tion with the progress OF the Man
churian negotiations, with possibly a
more obstinate stand on Japan's part
as an outcome
South American dollar bonds moved
hstleSsly. Neither the general trade
situation, which in November showed
some promise, nor the internal political
situations in the various Latin Ameri-
can republics have improved. wall
Street has become convinced that the !,
whole South American debt problem
VIII have to receive Official attention
from creditor countries If investors are
to, realize on the 81 800, 600, 600 bonds
sold In this market and presently stand
ing against South Americas credit.
tCopyright, ieei.r