Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-15
Special Dispatch to The star.

Special DlspaJcn 10 Ihe star.
NEW YORK, March 14.-During the
latter half of the week practically all
Of the improvement made in the invest
ment market in the first weeks of the
year was lost. Measured by the aver
ages, the decline was nearly points,
or depreciation of about S947, 900 900
on all bonds listed on the exchange.
Some Of the reasons behind this
liquidation are more or less obscure and
temporary. such as selling in order to
secure cash to make income tax pay
nents, forced selling induced by the
weakness Of stocks, and a stiffening of
money rates in midweek, due to Gov
eminent financing and the withdrawal
Of balances to handle soldiers bonus
loans. The big factor was the indi-
gestion of securities resulting from the
emanation of S262, 573 900 in new bonds.
This compared with $157, 500, 044 In the
previous week and $184, 69e, 900 in the
same week Of 1890.
New Bonds Quickly Sold.
1t is quite true that three Of the
larger pieces of new flnancing-$75, =
100000 Of New York Central AIS, $780,
600, 900 of Pennsylvania 44s and $685.
100000 of Port of New York authority
bonds-were quickly distributed. This
gave a temporary FLIP to the list be-
cause of the confidence engendered.
However, the diversion of such a large
amount of funds seeking investment
naturally had q depressing effect on
outstanding securities; and when these
high grade issues were followed by
some $70,000,000 of bonds of not so
high a grade, the indigestion became
acute.
So far there have been no sudden
letdowns in any of the new issues as
syndicate firm bids were removed from
the market. Whether this Is to come
depends on the immediate future Of
the market which is problematical.
The threat of public utility financing,
variously estimated between $3.50, 000,-
900 and $400, 000, 900, still hangs over
the market. On top of this, the for
eign dollar market has been obviously
"window-dressed" for some fresh dol
lar loans.
This latter movement was started
by the increased confidence which
spread throughout the European list
when the Bank of France gave its as
sent to Paris again becoming an inter-
national long-term credit market. Also
the Bank of International Settlements
declared itself In favor of renewed in
ternational money lending on long
dated obligations and proffered the aid
Of its own funds. These facts. together
Win grauual clearing up OF the south
American political situation, the sub
sidence Of troubles in Spain and the
faint signs of activity in commodity
marts, were SUFFICIENT to give renewed
hopes to bankers DESTROYS of floating
new dollar loans. German and other
European issues were promptly dressed
up and then the South American list.
with its many volatile descriptions.
sprang to life with gains Of 10 to 20
points. The advance ives accompanied
by talk of a $150,000,000 Italian loan,
of new German international hota-
ton and by daily announcements of a
flow of shoFt-term credits from Paris
and London to Berlin and other Euro
pean capitals.
Extent of Appreciation.
The list of foreign government and
corporation issues on the Stock Ex-
change, which has a par value to-
falling around $4,000, 000,0 900. enjoyed
an appreciation of over 100000. 900.
One group of 81 dollar issues had an
average gain of liz points.
OF course, there were exceptions
Australian issues backed and filled as
London placed various interpretations
on political advices. Peruvian issues
sold much higher when the revolution
airy government assumed power and