Evening star., 1932-07-11
BONDS IRREGULAR
ON PROFIT TAKING
Foreign List Subjected to
Selling PreSSure-DomeS-
tic Issues Firm.
BY F. II. RICHARDSON,
,ial Disnatch 10 The Star.

Special Dispatch TO The Star.
NEW YORK, July 11.-Although
foreign dollar bonds we're highly irreg-
ular today with liquidation and proflt
taking in the German issues and strong
buying of a few Europeans and South
Americans. the domestic list gave a
significant exhibition of firmness. Trad
ing was heavy.
The market opened with generally
lower trend German Government 5 IS
and Is were off about 3 points at the
start and soon extended their declines
This hcaviness affected German bank
issues municipalS and induStrlalS
Although both the French and Ger
man cabinets approved the gentle
mems agreement" reached at Lausanne.
the views expressed at Washington on
the linking of war debts and repara-
tions affected sentiment adversely.
Many SPECTATORS had substantial pro-
fits on the long side of German bonds
and took profits today; but the belief
that these issues will eventually go 10
much higher levels brought support
and though offerings were heavy they
were we'll taken. Many who sold their
German bonds in the first hour bought
them back again to points lower.
other Europeans were surprisingly
strong. Austrian Is, Hungarian 7l2s,
Vienna IS. Greek 6s and rs and others
of the same speculative character
pointed higher. French is. Belgian 6s,
italy is. Great Britain 5 IS and other
high-grade European government bonds
were firm Sterling exchange was OIL
about ll2 points as speculative shorts
in dollars covered their positions. The
technical nature OF this movement
voided any effect it might have had on
British bonds
Australian government issues as well
as the obligations of the Australian
states were higher. In the South Amer
lean list Argentine 6s continued Their
advance. BrazilianS. however, were weak
On reports of new civil disturbances.
Canadian Pacific bonds continued to
Improve. Holders here of Canadian
Pacific common. on which dividends are
now paid in Canadian funds, have been
selling their stock to buy the bonds OF
the road scfna of which pay interest in
American funds. This has already
pushed the Perpetual 4s nearly 13 points
above the 1882 low price. Other Cana
dian bonds were firm because OF favora-
BILE Canadian exchange prospects, With
the wheat movement about to begin and
the tourist season at hand. Canadian
international financing has recently
been well received. ontario OHeieo
$4,000 900 of 81. per cent 14-year de-
bentures to the public and the issue was
subscribed in three days. The province
of quebec raised s9.0O0,O00 in short
term notes without having recourse to
any outside market.
The most significant strength in
domestic issues was in industrlals.
Economists have been saying that the
first sign Of recovery would come IN
steadying commodity prices, as a result
of industrial purchasing, and that the
next phase would be a firming OF in
dustrial credit. Commodity prices have
been steady for more than month.
Today such bonds as Dodge Bros. 6s,
Goodyear S. Goodrich 6s, Texas Cor
poration Is. Sinclaire's rs, Standard Oil
of New Jersey SIS, Tobacco products OF
New Jersey 612s. Inland Steel 4i2s,
Armour of Illinois Al 2s and American I.
G.. Chemical 5l2S were all up by frac-
tions to more than points.