Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-19
BONDS DROP AGAIN,
WITH MARKET DULL
Forced Liquidation in Stocks
Has Depressing Effect
on Securities.
BY F. H. RICHARDSON.
,pecial Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, May 19.-Bonds were
lower in dull trading today. This APP
piled to every part Of the list because
Of the still Oppressive volume Of forced
LIQUIDATION arising from the decline in
stocks, but q few corporate issues man
aged to make small gains against the
trend and United States Government
issues attained record heights.
Government bonds. especially Liberty
fourth 4Hs, were supported by re-
newed ease in the money market fol-
lowing the action Of the New York
clearing house banks in reducing their
interest rates on deposits to 4 OF l
per cent for individuals and / per cent
for savings banks. This resulted in the
diversion Of large sums into bonds.
where yields in turn have been driven
to the unprecedented small figures OF
to 2 per cent.
Liberty fourth ANS opened on q sale
Of $325, 900 and shortly afterward had
worked to 1858, record high since
issue and Il point up on the day. AT
this figure the yield to the call date
In 1893 is only shade above per
cent. The yield on Liberty 312s Is now
about per cent and that on Liberty first
4l4s is undar 100 per cent. At the
their best prices in years. Short-term
Treasury paper rose to still more exag-
gerated levels, the annual percentage
yields on group of Treasury notes
running around O.65 to OTIS per cent
and the rate on Treasury mills quoted
at per cent bid and no offerings at
that price.
Municipal bonds showed the same
tendency. New York State bonds were
reported bid for at q shade above q
3 per cent basis today record for
many years. Current yields on other
high-grade municipals ranged from 500
offerings going at $50 to 2.10 per cent.
Detroit sold 1899, 900 Of IS ana 41as
on 4.16 per cent basis and these were
reoffered to the public at yields rang
ing from 2.l0 to AIS per cent, accord
ing to maturity.
With such a market for Government
bonds, there was little interest in any
thing else. Even issues that have long
been traded at prices rejecting sound Sc
curtty and certainty of interest payments
were lower, among them American I. @.
Chemical 5l2s. American Sugar Re-
inning IS. Boston e. Maine IS, Columbia
Gas & Electric IS OF both the 1861 and
1882 issues, International Match SIS, IL
linois Central 47z. Northern Pacific As
and Standard Oil Of New York ABS.
The decline In Columbia Gas g. Electric
bonds has paralleled weakness In the
company'S preferred stocks
Corporate obligations that remained
firm or advanced slightly were the
select few Of the prime group, includ-
ing American Telephone SIS, New York
Telephone AIS Philadelphia Company
SIS, Utah Power g. Light SIS, Duquesne
Light 412s, Atchison General As, Nor
folk & Western Is and Great North
ern Is.
Foreign dollar bonds dropped a point
or more in the case of the harassed
South American group. the Australians
and the lower rated Europeans, and by
smaller amounts in Italian, Austrian,
Swedish, Finnish and Balkan groups.
A few Of the high-grade, including
Great Britain y51as, French Is and TVS,
Belgian Is and Antwerp SIS, were in de-
mand. German issues dropped to new
lows for the current move, with the
greatest activity in Young Plan SIS
and Preparations Is.
(Copyrisht. 1917