Evening star., 1931-11-22
INVESTMENT BOND
MARKET IS HEAVY
s.
Continued Selling of Foreign
Issues DepreSseS Prices
During Week.
Special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, November 2l.-The In
vestment market was heavy this week
in moderately active trading.
It was a week Of disappointing de-
velopments. The factor which finally
precipitated heavy liquidation of COM
modities and stocks and, as a sequel,
forced liquidation of boAds, was the an
nouncement from Paris on Friday that
Japan and China had agreed to a truce
In Manchuria. Part of the recent ad-
vance in wheat, cotton and other COM
moditieS had been based on the belief
that long g-drawn-out fighting in Man
cnur1a would bring heavy buying by the
belligerents.
Foreign Bond Selling.
Ordinarily higher prices for commodi-
Ties mean smaller purchasing power per
dollar and should, therefore, mean low
er prices for bonds, but the pessimism
OF September and October was such
That any Improvement in the business
scene was at once utilized to put up
security prices.
Aside from the removal Of the war
threat. the selling Of foreign bonds was
attriputaole in large measure to the
situation that confronts the world in
the German debt crisis. Germany's re-
quest for the appointment of a commit
tee to determine her capacity to con-
tlnue reparations payments and to con-
slider her entire debt structure was
viewed favorably, as the logical step to
onset Frances obstinate insistence on
the priority Of reparations payments
over commercial debts. At the same
time the revelation contained in Ger
many's memorandum to the Bank for
International Settlements that meas
ures be taken with the greatest urgency
was Oppressive.
The market feels that the December 1
interest on the Young plan bonds will
be paid and that interest and sinking
fund payments on other German obliga-
tionS OF like nature will be kept up
until the year end, but unless some more
lasting solution of the German problem
results from the forthcoming investiga-
ton, 1t Is extremely doubtful IL all 1882
payments can be made.
Peculiarly enough, one of the factors
that has initiated against Germanys
financial position has been the desire
OF her citizens. cities and states, to pur-
market at bargain prices-20 to 40 cents
on the dollar. Many Of these bonds are
acceptable at face value In Germany as
payments for loans, chiefly land
mortgages. It is readily seen that a
farmer wishing to pay his mortgage
would benefit handsomely If he could
purchase bonds of a face value high
enough to meet his full obligation at
20 to 40 per cent of their value. AS q
result. some German issues have stood
up nrmly IN spite Of other factors.
British Issues Firm.
British issues remained firm, owing to
the imposition Of anti-dumping duties.
The duties are discretional, however. and
Wau Street does not see In them sny
definite promise Of high revenue tariff.
English companies have recently shown
improved earnings reports and the Lon
con market, except as it is affected BY
the German situation, has resisted
efforts to depress 1t.
During the week $13,954,4OO of new
bonds were put out. compared with
sic, ,359, 900 in the preceding week and
$9S,977.000 In the same week Of 1880.
Copyright, 1931.)