Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-22
bond PRICES DRIFT
TO NEW Low LEVEL
Active Liquidation of Stocks
influences Trading With
Downward Trend.
BY r. II. RICHARDSON.
Special Dispatch to The Star.

Special dispatch to The Star.
NEW YORK, April 22-Despite
periods of firmness-as witness the tone
on Tuesday-the bond market drifts
lower day by day, successfully making
new low levels for the year Today was
no exception, with trading influenced
by the active liquidation of stocks.
Every factor save one is in the market s
favor; but that one-public confidence
is not. Easy money rates, the dropping
off in new financing, heavy corporate
retrenchment with view to safeguard
ing assets while business is at the cur
rent low ebb, and the largest total OF
public savings in history have combined
with the desire for safe depository for
funds to lift only the best of investment
issues. Junior bonds remain weak and
neglected.
Today volume was small, but there
we're few buyers. Even high-grade bonds,
such as American Telephone SIS, Pere
Marquette 4l2s, Southern Pacific Re-
funding As and Youngstown Sheet g.
Tube SIS, were inclined to sag frac-
tionally. United States Government
bonds were also heavy
In junior issues the weakness of
stocks had a direct reflection. General
Theater Equipment 6s bond with an
equity conversion feature, dropped over
2 points. Nickel Plate 4I@s were off
IL points. Fractional losses were the
rule in Armour of Delaware 51as, Chi
cago & Northwestern 434s, Goodyear
IS, International Telephone SIS, Mis-
souri, Pacific 512s and SIS, Paramount
Publix (512S, Phillips Petroleum 5As,
Frisco 412S, Shell Union SIS, Southern
Railway general Is and Warner Bros.
Pictures 6s An index of bonds of
the junior type stands today oyer 81
per cent below the level at the begin
ming OF the year and over per cent
under the same index year ago.
While there was some strength in
European dollar bonds, owing to
switching from American securities by
German, French, British and Italian
investors, the general tone of the for
eign list was weak. The possibility of
stretching the recent recoveries in Aus
tralian bonds was eliminated with the
announcement of the suspension of
payments by the New South Wales
Savings Bank. This bank. with de-
posits of S425, 100000, is comparable in
size to the defunct Bank of United
States. Continued weakness of coffee
prices checked the recovery in Brazil
ians. Other South Americans were
also sold.
Today's new issues consisted of less
than $5,000,000 in municipals These
are in strong demand. Onondaga Coun-
ty, N. Y, was able to borrow at prices
ranging from 225 to 1865 per cent yield
basis on bonds due 1892 to 1851. De-
troit proposes to sell S19,337 900 of Sc
rial bonds maturing 1882 to 1861 Mis-
sissippi bankers have given definite as
surance that May l maturities of State
bonds will be taken care of, on the as
sumption that no other provision is
made for them. Prices ranged slightly
higher all through the municipal list.
Additions to the list of bonds legal
for savings banks and trust funds in
New York State were announced by the
banking department today. They in
clude Boston g. Maine Railroad Co
general 4as, series J; Southern Pacific
Co. gold 4l2s of 1891; Texas g. Pacific
Railway Co. general and refunding SIS
Of 1880, series D; Public Service Elec-
trio & Gas Co. of New Jersey first and
refunding 4s of 1871, and Public Service
Newark Terminal Railway Co first SIS
of 1865.
Copyright, 1919