Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-30
BONDS IRREGULAR,
BUT SALES DECLINE
u. S. Group Again Meets Of
feringS as Bonus RumorS
Persist.
BY F. H. RICHARDSON.
oecial Dispatch to The Star.


NEW YORK, January 30.-After a
firm opening, selling of United States
Government bonds was resumed on the
bond market today. However, the offer
ingS were smaller and numerically fewer
than on Thursday. Declines were held
below 1892 of point.
The market was satisfied that while
there was no immediate danger of a
$4,000, 100000 bond issue to cash SOL
dierS' bonus certificates, something
would be done, such as extending the
borrowing privileges on the certificates,
that would require further Government
financing. Meanwhile bidders for to-
days $60,00000O offering of 90-day
Treasury discount bills adjusted their
bids to suit the suddenly changed
market position.
The rest of the bond list exhibited a
SteadinesS that inspired dealers to hope
for a quick recovery of the losses of the
last two days. One of the significant
things about the decline has been that
while bonds have dropped, time money
rates have remained at their low point.
Large amounts of money realized on the
sale of Government bonds on Wednes-
day and Thursday have found their
way to the money desk. This has
caused another oversupply of funds.
The volume of trading was lower than
on Thursday, when United States Gov
eminent issues accounted for over ST.
600 900 of the S140O0,000 bonds traded
on the Stock Exchange.
Stock Gains Aid Market.
The sudden raid on the bear position
in stocks was reflected in irregularity
in some bonds. Sudden calls for funds
for short accounts caused a little CASH
ing of bonds, but the rise in equity
prices, on the other hand, had a ten
dency to buoy up prices of issues sensi-
tive to stock movements. Pathe EX-
change Is, for instance, gained points
on the strength in amusement stocks
Warner Brothers 6S were active and
fractionally better at one time. Hud-
son Coal IS. Erie SIS, Remington-Rand
512s and Pure Oil 512s had losses
ranging from a point to 2 points.
Seaboard Airline issues all reflected
the announcement today that defaults
would occur in the per cent secured
notes and Seaboard All-Florida first
mortgage bonds maturing in February
The receivers advised also that addi-
tional defaults are inevitable. Chicago
81 Eastern Illinois IS gained little on
the statement of President T. c. ONeil
that interest charges of S883,965, due
on May / next, had been provided for
Allegheny SIS of the 1914, 1949 anc
1850 maturities were firm, together with
other Van Sweringen securities, such a.
Van Sweringen per cent notes, Chesa-
peake Corporation, Chesapeake & Ohio
and Nickel Plate bonds. 1t was an
nounced that additional collateral to the
amount of s9,600,000 had been de-
posted behind the Allegheny bonds
making deposited collateral now S131,-
$685. $50, which is 166 per cent of the
S78.923, 900 par value of the bonds out
standing.
Investment Issues Steady.
With few exceptions, seasoned in
vestment issues were firm. Atchisor
General As, American Telephone Sis
Canadian Pacific As Southern 4laS
Union Pacific As and other bonds OF
like caliber were unchanged or shade
higher
In the foreign department German
government 5 Us were again fractionally
lower, though the reparations Is made
a small advance. Cuban issues rose
sharply on the announcement that the
new tariff bill had received presidential
approval. Most South American issues
were unchanged. Bolivians, in a small
advance, mirrored the markets opti-
mtsm in regard to the new debt nego-
tiations now going on there.