Evening star., 1931-04-29
BONDS APPROACH
DECEMBER LOWS
Selling Affects All Glasses Ex.
cept Handful of Prime
Issues.
BY F. H. RICHARDSON.
Al Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, April 29.-Bond prices
today sank to within a point of their
December low, according to Standard
Statistics index of 80 bonds. The SELL
ing affected all classes of bonds with
the exception Of handful of prime Is
sues.
The variety of issues affected forced
the conclusion that much of the selling
emanated from operators hard pressed
for cash by the continued decline in
stock prices. Those with funds at hand
sought the refuge of United States Gov
ernment or municipal bonds. Those
who needed cash sold their bonds no
matter what they were. In such mar
ket loan money rates could have no ef-
feet. The only comforting phase of the
session was that, in view Of the weak
ness of stocks, there was not a much
greater volume of forced selling.
The character of the trading was
evidenced by weakness in bonds hitherto
considered in the seasoned investment
class. West Shore guaranteed As, for
instance, were off fractionally under a
few sales OF only moderate size. There
was weakness in Laclede Gas 512s,
Southern Pacific 4I2s, New York Cen
trail 4l2S and SIS, Inland Steel 4l2s,
Youngstown Sheet & Tube 5s and Illi-
nois Central 312s. The last named were
off nearly points. The road covered
fixed charges by Isl times according to
its last reports. 1t was pointed out that
a further decline would mean the bonds
would no longer be legal for investment
by savings banks and trust funds in
New York State.
The recently issued New York 4l5s
sold at 2l2 points discount. The last
issue of Southern Pacific 4l2s were at
a 514 point discount, and that, of In
land Steel 412s sold at 2-point dis
count, with Youngstown Sheet &, Tube
IS at a fractional discount.
Against this picture there were a few
sales of Liberty fourth 4As at prices
equaling the previous high Of the year,
and other United States Government
bonds also advanced. MunicipalS were
in demand and at scarcity values, ow-
ing to the recent Stagnation of the new
capital market and the consequent lack
of new municipals. But only very
small group of corporation issues were
still in demand by investors. They in
cluded American Telephone SIS and 5 12S,,
Atchison general Is. which sold within
!. point of par; Baltimore & Ohio first
Is, Norfolk & Western As and Great
Northern rs.
In the Junior division, Missouri Pa
cific IS of the recently issued series
sold at 14-point discount, off 3 points
on the day. Acute weakness also af-
fected Erie 5s. Frisco 4l2s, Allegheny SIS,
st. Paul 5s, New York, Ontario & West
ern As, Denver & Rio Grande Western
5s. International Great Northern ad-
justments and many other junior car
rier bonds.
IndIstrials were weak. among them
Warner Bros. 6s, Pure Oil 5l2s. Chile
Copper SIS, Dodge Bros. IS, Anglo-Chi-
lean Nitrate rs, and American & For
eign Power 5s. Chrysler earnings did
rot cover the interest on the Dodge 6s
for the first quarter. international
Mercantile Marine 6S eased. The cC.l-
pary'S report revealed progressive de-
cline in earnings.
In tie foreign department the fea-
ture was a break of over 5 points in
Poland rs and 8s, which was attributed
to the liquidation of an individual ac-
count. Brazilians, Uruguayans, Chileans
and Colombians were still weak. SO
welc Australians and some European
municipals and industrials. Even some
of the better dollar bonds, such as Jap
anese SIS, Prussia 6s, and Austrian rs
we're fractionally lower. The high-grade
group was steady.
Copyright, 193l)