Evening star., 1931-05-20
MANY GAINS MADE
ON BOND MARKET
Junior Issues Lead Way for
Improvement-Foreign
Credits Weak. Il
BY F. H. RICHARDSON.

Special Dispatch to The Star.
NEW YORK, May 20.-Owing to an
oversold condition following the panicky
withdrawal of bids on Tuesday, todays
bond market showed many substantial
gains in junior issues. Prime bonds
continued to advance. Foreign dollar
credits, excepting those Of the highest
rating, were weak.
Trading dropped to meager proper
tionS on the rally. 1t was evident that
the recovery in stocks had served to
check the decline Of bonds, but over
night earnings reports of a bearish
character gave fresh pause to the spec
ulative element-Wall Streets sole hope
so far as any rally of junior bonds Is
concerned at present.
United States Government issues con-
tinued to advance actively, with new
highs recorded in Liberty 3Rs. Liberty
first 4As, Treasury 4As, Treasury As
and Treasury 3ass. Liberty fourth Az S
equaled their previous top and showed
every indication of advancing to a price
where the yield would be less than 2
per cent per annum.
development interpreted as Signifi-
cant of the present bond market was
the offering of nearly $4,000, 900 in
new bonds This is nearly as much as
the total offered all of last week, and
more than was put out in any of the
preceding three weeks. Naturally all
were OF prime type and as such sold
at prices close to the market for similar
outstanding bonds
The market was receptive to the new
issues because of the scarcity premiums
existing on all bonds of the best in
veStment grade Consolidated Gas of
Baltimore offered $18,000,000 of 4 per
cent first mortgage bonds, due in 1881
The price was 95l2 or a All per cent
yield basis. The price for $16.000,000
Puget Sound Power g. Light first mort
gage 4l2s was on 495 per cent basis,
and $10,187,000 City of Newark per
cent serial bonds were priced on 1.90
to 3.65 per cent basis.
Corporation issues OF the seasoned
type, such as American Telephone SIS
and 512s, Chesapeake Corporation IS,
Canadian National SIS, National Dairy
Products 5As and Western Union SIS,
were firm to slightly higher. Junior
rails had recoverieS of u to 2 points,
the best gains being shown by Chicago
Great Western As, Erie SIS, Nickel Plate
4 l2s and Frisco A As and 4I2s.
Allegheny SIS Of 1850 were of 2 points
dIlU QUIET issues OF Lne COTpOTdJlOI
were weak. The aggregate market
value of Allegheny Corporations hold
ings was placed today at around $124,-
1000. or more than $4,000 900 less
than the funded debt and outstanding
preferred stock. Warner Bros. Pictures
IS, a speculative issue that on Tuesday
opened at 80, dipped to Is and recov-
cred TO 29%. today was over points
higher at one time, later fluctuating
irregularly. The company. as unoff1-
cially reported, shows a cash position of
4,0o0, 900, while bank loans total 81,
600, 900. Current assets are reported as
twice current liabilities.
In the foreign list the weakest issues
were the Germans.
When stocks turned weak in the aft
ernoon, bonds we're sold again and
most of the morning gains were can
celled This was especially true of the
railroad list, with such issues as st.
Paul SIS, Missouri-Pacif1c SIS, Frisco A
As and 4las and International Great
Northern adjustments, providing most
Of the activity. At the same time,
prices were held above their previous
low levels and a few. such as Erie SIS
and Nickel Plate 4las, resisted the
downturn very well.
st. Louis Southwestern Consolidated
As were outstAndingly weak, dropping
of over z points to an all-time low.
Railroad statistics point. to a deficit for
this road in 1881.
(Copyright ig3i)