Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-30
PRIME BOND LIST
IN UPWARD TREND
Retention of 3 IL Per Cent
RediScount Rate Aids High
Grade Issues.
BY F. H. RICHARDSON.
special Dispatcn 20 The star.

~nh1hAaA A2A&SAtAl 30 &Ne SsHT.
NEW YORK, October 3o.-Mainte-
nance Of the 81. per cent rediscouut
rate by the New York Federal Reserve
Bank, when a majority Of Wall street
observers expected an advance. proved
strong argument for higher prices IN
prime bonds today. United States Gov
eminent long-term issues advanced
from ? to l point In the early hours
and were turned over in quantities.
High grade rnunicipals and corporation
descriptions also firmed
The advance in high grade issues was
tn be expected. but the maintenance OF
the bank rate also had beneficial ef-
feet on junior securities. This was
based largely on the argument that the
reason for a higher rediscount rate nav
ing disappeared and drop Of 1000
900 in circulation indicating a check 10
boarding. there was mere optimistic
picture of general conditions. Firmer
stock prices. higher commodity levels
and a number Of favorable earnings re-
ports lent color to this belief and spec
ulative bonds were accordingly pushed
higher.
Junior carrier issues such as Mis-
souri-Pacific IS and 5i2s, Frisco AIS,
Nickel Plate 4i2S, Denver 81 Rio Grande
Western SIS, and Wabash first 5s were
up / to points. Industrials also were
better. Warner Brothers Pictures Is
gained y points. Dodge Brothers Is,
Certainteed 5las, Armour of Delaware
512s. and Chile Copper SIS improved.
Junior Utility Bonds like International
Telephone 4l2s and IS and Utilities
Power g. Light SIS were also firm.
The improvement in prime corpora
ton issues extended to point more i'll
bonds like Atchison General As, Nor
folk g. western As, Baltimore & Ohio
4l2S Great Northern rs. Duquesne
Light AIS. Utah Power & Light SIS and
to fractions in the case of American
Telephone IS and SIS.
On the Curb Exchange there was
heavy trading in Van Sweringen
per cent notes. These notes, of which
$50, 100000 are outstanding, have an
interest payment due November l
and recent prices had cast doubt OF
the ability of the company to pay the
coupon. Today the company an
nounced that it will offer holders of
the notes, which do not mature until
May 1, 1885, the option until Decent
Der /, 1881, of exchanging each $1,000
note for $500 in cash and 20 shares
of Van Sweringen capital stock. The
corporation plans to sell sufficient of
its segregated assets, which are all
United States Government bonds, to
obtain the cash.
The stock involved will be furnished
from the present holdings of the Van
Sweringens. Those who hold the notes
and saw them recently quoted under
So cents on the dollar, will undoubtedly
be tempted to accept the offer. Since
the Van Sweringen stock was quoted
today at / bid and 2 asked, the notes
are worth about 50 and this price APP
proximated today'S market for them.
Foreign bonds were quiet. Japanese
tissues were turned over in some volume
at the opening owing to the renewed
threat of action by Russia in Man
churia, but the price held STEADY
British SIPS, German 5l2ss Belgian
French and other Europeans were nrnl
South Americans moved Narrowly.
Bonds were generally higher at the
opening.
There was active trading in Japanese
issues following reports that Russian
troops were again modifying In Man
chlria. The 612s opened of slightly
and then recovered to net gain on the
day. British issues were unchanged
Young plan SIPS were lower at the
start, but other German issues were
firm. French and Belgian descriptions
we're unchanged.
In the domestic list. United States
Government bonds were higher owing
to the maintenance of the 31s per cent
rediscount rate at time when an adj
vance had been expected. Improve
ments of II to y point took place
in Liberty first and fourth 44s and
in the Treasury issues. High-grade
corporation bonds, such as Atchison
general As and American Telephone 5s,
were better Junior rails, like Mis-
souri-Pacific SIS and Erie SIS, and indus
trials, such as Dodge Bros. IS and
United States Rubber IS, were firm
with stocks.