Evening star., 1931-12-29
BOND PRICES SHOW
F|RMER TENDENCY
U. S. Long-Term Issues
Continue in DoWntrend.
Trading Quiet.
BY F. III. RICHARDSON.
Special Dispatch to The star

Special Dispatch to The star.
NEW YORK, December 29.-A-
though the outstanding development In
the bond market today was the con-
tinued slide of United States Govern
ment long-terms bonds down to new
Iows-including dip by the recently
issued Treasury IS to level comparing
with the 1920-1921 low Of Liberty
bonds-the general list of fixed income
securities had a decidedly better tone
Trading was active at the start, but
tapered off as prices firmed.
The opening was irregular. The fact
that the Treasury's offering of $780,
100000 of 91-day bills sold at bank
discount interest rate of 81 per cent,
compared with 259 per cent on Novem-
Der 80 and the record price of 0.49 per
cent earlier in the year, indicated an
unexpectedly higher money market
This factor, combined with the year
end window dressing by corporations
desirous of showing a strong cash po-
sition and income tax selling, served
to depress Governments and munich
pals to new lows for the bear market.
Treasury 31ss sold around a 1512-
point discount and the Treasury IS
Slumped to 16l2-point discount. At
little better than 83 the IS compared
in price to Liberty Fourth 44s in May,
1920, when they sold at 80. 1t will be
recalled that 1920 was a high money
period There is evidence in the present
situation to indicate a comparable con-
dition soon should rates keep advanc-
ing. Liberty Fourth 4As were off
sharply to a new low under 80. Lib
erty First 4As, the Treasury 4Hs, As,
334s and 3ass all made new lows.
Municipal bonds were also under
pressure. While the conservative State
issues declined only narrowly-New
York State As were available at prices to
yield little better than per cent
city and county obligations had sharp
losses. These ranged from point or
so in New York City obligations to 3
points in long and short descriptions Of
Detroit, Philadelphia, San Francisco
and other communities. Some of the
losses were subsequently retraced.
Bonds were without definite trend
at the opening.
1t is as true of the Government and
municipal markets as it is of the cor
poration list just now that no large
blocks of bonds can be disposed of at
the market without pressing prices
down to points. Dealers report that
large cash resources have been able to
buy such conservative issues as Atchi-
son General As, American Telephone SIS,
New York Telephone 4 4l2S, Utah Power
g. Light SIS, DuqueSne Light 4l2s and
Standard Oil of New Jersey 5s at prices
well under quotations on the tape. One
sale of a block of $150,000 Atchison
Generals was reported to have been
made at 81, or more than 4 points un-
der today'S market price.
United States Government issues
were still under pressure because of
new tax selling and market fears OF
another large batch of Treasury
financing in the near future. The do
mestic list generally had many irreg-
ular movements. 4 few of the rails
that had sharp losses on Monday were
firmer today, among them Rock Island
4l2s, MisSouri-Pacific General As, Big
Four 412s and Baltimore & Ohio 6s.
Industrials also were subjected to Sc
lective support. International Cement
SIS dropped off points, but issues such
as Brooklyn-M Manhattan Transit 6s and
United States Rubber 5s were heavy.
In the foreign department German
British and other Europeans were
higher. rejecting intimations from
Washington that the President would
not let the adverse attitude of Con-
gress prevent American participation in
the approaC hing debt conference. jap
anese issues we're off with the yen quo
tation.