Evening star., 1931-11-29
INVESTMENT BOND
DECLINE IS SHARP
Fixed Income Securities Reg
lister Heavy Losses Dur
ing the Week.
Special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, November 2S.-Al-
though marked by a comparatively
small volume Of trading, with the
Thanksgiving day holiday giving pause
to the market, this week has witnessed
the Sharpest depreciation in bond
values of any week since the begin
ming Of the bear market. Compare
tive figures are not available, but it is
extremely doubtful II any week in any
previous depression had such a dras-
tic revision of prices for fixed income
securities.
During the week Standard Statistics
index of so bonds dropped a full 3
points, which-taking the New York
Stock Exchanges compilation of total
bonds listed as q gauge-meant de-
probation of $500 900 900 in listed
bonds, with all other bonds probably
losing an equal amount.
Railroad Bonds.
In railroad bonds the idex dropped
points, a depreciation of $648, ,000, 600.
There is a total of $10,827, ,957 1850 par
value Of railroad bonds listed on the
New York Stock Exchange. At the
end Of this week this group was valued
at $7,230 ,000, 900 in the open market,
figure more than $3,000,000, 900 lower
than the same bonds were valued as
recently as last March.
Selling was not in heavy volume.
Daily sales ran from $4,000,000 to S.
100000 under Octobers heavy trading.
The price declines could not, therefore,
be blamed on any new flood of liqui-
dation. The truth was that the Octo-
ber optimism that saw a vastly i'm
proved market for railroad bonds as
the result Of a promised business re-
covery had evaporated in the face of
October earnings reports, new crisis
abroad, and the refusal of the railroad
unions to submit voluntarily to 10 per
cent wage reduction. When one of the
large statistical services announced its
intention to revise the ratings of many
carrier bonds draStically downward, the
last obstinate bidders for bargains" in
carrier issues withdrew and the market
was left virtually without support.
Seasoned rail bonds such as New York
Central 412S, Southern Pacific 41as,
Northern Pacific IS and Rock Island
Refunding Is lost 4 to 8 points on the
sale Of handful of bonds.
Other Factors.
Meanwhile high grade securities were
depressed because of other consider
ations. In December the Treasury
must raise approximately 81 500, ,000, 600
In order to meet bill and certificate ma
TURTLES and tide the Government par
TALLY over its deficit. United States
Government long term issues declined
on Wall Streets opinion that Secretary
Mellon will hardly be able to do better
than sell about $500, 100000 of 3 to S
year noteS-probably carrying 315 to
334 per cent coupon-and 81 900, 900 900
Of one-year certificates of Indebtedness
70 be sold on q discount basis, probably
around 2l2 per cent.
This unsettled prime corporation is
sues and municipals, all of which
moved down l to points during the
week. They as well as governments,
were additionally weakened by the pres
sure coming from a declining stock
market in the form of margin calls.
The new capital market was idle
again, the weeks offerings aggregating
only $12, ,466 ,920, all municipals. This
compared to $13,954,4 in the previous
week and $46,874, 900 in the same 1880
week.
(Copyright. lss1)