Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-05
BONDS ARE LOWER
IN HEAVY TRADING
Lack of Bids Results in
Sagging Market as
Offerings Gain.
BY F. H. RICHARDSON.

Special Dispatch to The Star.
NEW YORK, October S. Bonds
dropped into new low ground today in
a moderately heavy volume of trading
The decline was orderly, and the long
list of losses was interspersed with some
small gains.
Bidding was admittedly thin. Very
often when a bond was quoted 66 bid
IS asked, investigation WOULD reveal the
fact that the bid was for one bond ano
that there were so or more offered
at SO.
At the same time the market showed
better tone than it did in the first
days of the current decline, when there
were many issues for which there were
no bids of any kind.
Because of the weakness at London
the English market dropped rapidly, de.
spite hour-to-hour adjustments upward
to the price of sterling, which was again
below $380-the foreign list again had
heavy tone. These losses were small
and we're mixed with many gains at
the start, but became more general and
wider in later trading.
The new breaks in foreign exchange
quotations were, OF course, reflected IN
new offerings of foreign descriptions
of the countries affected sought to Offset
exchange losses. Canadian government
As and SIS were point lower. Canadian
national railways issues, Canadian
Pacific bonds and other Canadian
corporate descriptions declined l to
points as the Canadian dollar dropped
to AROUND 13 per cent discount.
Italy rs, Milan 6l2s,~Rome 612s, Italy
Public Works rs and other italian
bonds mirrored the heaviness Of lira
exchange. German bonds rallied as
the, reichmark held its ground fairly
we'll. Belgian Austrian, Swedish, Nor
wegian, Danish, Dutch and Swiss Sc
curities were all depressed.
In the South American list Argen-
tine 6s paralleled a new decline in the
peso. However, it was announced to-
day that the Banco de la Nacion will
fix an official rate for peso exchange
early this week in an attempt to bring
the quotation in accord with business
conditions and to eliminate specula-
ton. Other South Americans were
fairly steady.
In the domestic list all types of bonds
were affected by the liquidation. Amer
Lean Telephone SIS dropped a point to a
new low for the year. Utah Power &
Light SIS fell IL to around their pre-
vious low North American Co. SIS sold
fractionally, Western Union IS dropped
a point. Sharp losses in many other
high-grade utilities showed that the
selling was without regard to quality
United States Government bonds drop
ped "a to ]: point in the morning, but
later fir1ned little as safety buying
increased in volume.
Railroad bonds we're again the hard
est hit. Atchison general As, Baltimore
& Ohio first As, Chicago, Burlington &
Quincy general As, Norfolk & Western
As, New York Central 312s. Pennsyl-
vania general AIS, Union Pacific first
As, Northern Pacific IS and many 9TH
er prior lien rail mortgages were sold at
losses of to points. Nearly all OF
them touched new lows for the bear
market. In the junior carrier list the
declines were even sharper.
Industrials had an irregular trend
There were spots Of strength in such
issues as American Sugar Refining 6s
Dodge Bros. IS. General Motors Ac-
ceptance 6s. New York City Traction
bonds. National Dairy Products 5l4s
and Texas Corporation SIS, but the
losses outnumbered these gains. Rub
Der company bonds were under special
pressure.