Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-03
BONDS ARE LOWER
AS OFFERINGS GAIN
Political Troubles in South
America Have Depressing
Influence on Market.
BY F. II. RICHARDSON.
Special Dispatch to The Star


NEW YORK, September 3.-BondS
were depressed today, influenced by a
weak stock market and by new politi-
cal troubles in South America and
heaVineSS in continental markets.
The list held fairly steady in the first
hour, when most bond news was con-
structive. The Berlin market was re-
opened for restricted trading without
the attendant troubles that had been
anticipated. Young Plan 5las and
Dawes Preparations Is had small gains
at the start. These were extended when
word was received from Geneva that
Germany and Austria had officially
abandoned their proposed customs
union-a bone of contention that had
threatened to disrupt European unity
But when continental markets turned
downward later in the morning, the en-
tire foreign dollar list went with them
Germans lost their opening gains and
went to snail net declines on the day
British issues held firm, though word
had been received that England had
already started to draw on her $780,
100000 international credit to support
sterling quotations
Rpdolf Karstadt IS were in demand
at firm prices. following announcement
that sales for the quarter ended July
81 amounted to $22,389,493 against
$24.l57,559 in 1880. The figures were
converted from reichSmarkS at 23.S
cents.
The South American list turned down.
ward on adv1ceS from Chile that state
OF siege existed with mutineers in con-
troll Of the fleet. Chilean 6s were of
l TO 2 points. Chile Mortgage Bank
issues also declined. Colombians were
slightly lower in spite of an announce
ment that both interest and sinking
iund service for the IS of 1873 had
been received in New York.
BrazilianS, on which favorable service
announcements were also made, lost
ground as well. Cuban issues were
strengthened by renewal of the Chase
National Bank $20,000,000 loan for 60
days.
Once again the railroads led the de-
cline in the domestic list. They had
been steady at first, but activity picked
up on the decline and it was not long
bsfore many issues were lowering around
their previous lows. Even conservative
bonds such as the Baltimore & Ohio As
OF 1888 were off over a point. while the
4l2S of 1860, convertible issue.
dropped points. Losses of a point or
more occurred in st. Paul SIS, Chicago
& Northwestern 434s, Rock Island re-
funding As, Rock Island 4l2s of 1860,
YER & Rio Grande Western SIS. Erie SIS,
Missouri-Pacific SIS, general Is and SIS,
Nickel Plate 4l2s. 5l2s and 6s, Frisco
prior lien A As. B IS and 41as, Southern
Pacific AIS. Southern Railway 6I.s and
Wabash 412s.
Elsewhere there were also some sub
Stantial losses. National Steel IS
dropped to new low on the movement.
Anglo-Chilean Nitrate rs were off
points to a new low. American Inter-
national 5 IS hit new bottom. Good
rich 6s were off sharply on a poor
statement by its Canadian subsidiary.
Oil company issues, like Shell Union SIS
and Texas Corporation SIS, were slightly
lower
High-grade issues were firm. Some of
the best of the rails. like Atchison gen.
eral As. Norfolk & Western As and
Northern Pacific IS, making Roadway
against the lower trend in rails. Utility
bonds. such as American Telephone SIS
and Duquesne Light 4i2S, were steady.
United States Government bonds were
2I32 to 3/32 higher at one time.