Evening star., 1931-06-25
BONDS ARE HIGHER
IN ACTIVE MARKET
Industrial List Features Up
turn on Corporation Divi-
dend News-RaiIs Improve.
BY F. H. RICHARDSON.
|, nhnIn 70 The star

NEW YORK, June 25.--Bonds moved
sharply higher again today IN active
trading. Further consideration of the
foreign situation in the light of Frances
reply to President Hoover's debt plan
brought out heavy volume OF buying
in bonds, rejecting broad advance In
stocks both here and abroad.
Everything in the bond list advanced,
with the exception of handful OF high
grade low yield issues. The tendency
to cash United States Governments, n1u-
nicipal bonds and the gilt-edged cor
porate descriptions was more in evi-
dence than previously this week. Atchi-
son general As, for instance, which have
been selling well above par, where they
yielded less than per cent to maturity,
slipped to shade above 80. There was
similar trend in American Telephone
512s and SIS, Baltimore & Ohio first As,
Great Northern rs, Philadelphia Co. IS,
Norfolk SC Western first As. New York
Central 41as and National Dairy Prod
ucts 5Hs
This was even more significant evi-
dence of the trend toward junior se-
curities than the sharp gains in second
and third grade bonds. Allegheny Cor
poration SIS, whose position has been
vastly improved by the rise in stocks
deposited as securing collateral, ad-
or more were the rule in Erie SIS, Mis-
souri-Pacific 5s, Frisco 412s, st. Paul
adjustments, st. Paul SIS and Wabash
412s.
The maintenance of dividends by a
number of corporations was reflected in
an improved tone in industrials. Ac-
companying statements that the divi-
dends were being paid out OF reserves,
because of the marked improvement in
the international situation, placed en-
phasiS on industry's approval of Presi-
were made by Dodge Brothers 6s, Good
year SIS, Hudson Coal SIS, international
Match SIS, International Paper SIS and
IS, McKesson & Robbins 5l2s, Para
mountainous 6s Phillips Petroleum
5Hs and United States Rubber 5s.
While the expected granting Of a
$1O0 600, 900 credit to the Reichsbank
bv an international group, including the
Federal Reserve, probably was big
influence on foreign dollar bonds today,
an even more direct factor was the
worldwide firming of commodity
prices. With both wool and wheat
her chief exports-showing firmer lev
els, Australia's bonds jumped 2 to 5
points. The important gains were in
Brisbane 5s, New South Wales SIS, sgd
rey SIS and Australian government
AIas and SIS.
The much better tone in coffee and
rubber was reflected by gains of to
points in Brazilian issues. Sac Paulo
State rs of 1940-the much publiciZed
coffee loan of a year ago-were 2 points
higher and selling over 30 for the first
time since March. Firmness IN wheat
and new record export shipments Of
that commodity from Argentine sent
the entire group of Argentine IS above
as for the first time since their break
in April.
German bonds were up fractionally
on heavy turnover. Probably the rea-
son why the recovery in Young plan
SIPS has been so slow Is the failure of
many investors to realize that the pro-
posed debt holiday in no way affects
interest payments on these bonds and
other commercialized loans of Germany.
German municipals and industrials also
continued to move upward, notably
United Steel Works 6l2s of various ma
turtles.