Evening star., 1932-05-24
i. s. BOND ISSUES
IN SHARP DECLINE:
Group Breaks Abruptly in
Final Trading-Junior
Rails Improve.
BY F, H. RICHARDSON.

special Dispatch 10 Inc olar.
NEW YORK, May 24.-After advanc-
ing sharply early in today's session,
United States Government bonds broke
with net losses in nearly all the active
long-term Treasures and Liberties.
Trading was heavy in the last hour.
The Street was at a loss to place the
blame for the break in Government
issues except to presume that Federal
Reserve purchases had dropped off with
an increase in offerings The list at
one time during the day was to 3
points above its recent lows and un-
doubtedly there was some long profit
taking.
Meanwhile junior railroad and indus
trial issues, which had been lower early.
firmed up and few, such as Skelly Oh
5As, Baltimore & Ohio first As, Armour
of Delaware 51as. Allegheny Corpora
ton SIS and Youngstown Sheet & Tube
IS had small net advances on the day.
The foreign list was heavy all day.
The market opened lower in the do
mestic corporation list but with Gov
ernment bonds sharply higher. The re-
cent purchases for the Treasury sinking
fund, combined with the buying of the
Federal Reserve banks, which is again
expected to amount to over 10000 ,OOD
this week, caused some hurried covering
by spectators who took ShCrt position
in Governments on the downturn last
week. Hence Government issues ran up
about IA to y point today, so that ap-
proximately one-third Of the recent re-
action was retraced.
1t is interesting to note, in connection
with the average discount of .29 per
cent allowed on the S60,000,000 of 91-
day Treasury bills allotted today, that
current quotations fer Treasury notes
are so close to par that on the 2%s ma
turing in June and the 3lss maturing
in August no yield at all can be figured.
On the IS maturing in September the
yield, on an annual basis amounts to
only 4-100 of l per cent and on the
3Iss due in October the yield is 9-10o
of l per cent The market for Treasury
bills outstanding which is usually uni
form for all maturities, was today .35
to 40 per cent bid and 10 to Is per
cent asked
Trading in Government securities ac-
counted for about half of the total bond
trading on the New York Stock EX-
change today.
In the corporation list the most active
issues were the second and third grade
public utility operating and holding
company issues. many of which are
listed on the Curb Exchange. There
was considerable liquidation in Gatineau
Power IS. Indiana & Michigan Electric
SIS, Interstate Power SIS, Iowa & Ne
braska Light & Power IS, Kentucky
Utilities 6l2s. National Power & Light
SIS and 6s. Superpower of Illinois 4 IS,
Wheeling Electric IS, Western Union SIS,
Postal Telegraph SIS, International Tele-
phone 4l2s and American g. Foreign
Power 5s.
Kreuger & Toll IS were up frac-
tionally, many traders believing that
now that the company is actually in
bankruptcy the bondholders have a
chance of receiving something. Inter-
national Match IS, which have been
selling at l to 2l2, were also traded in
for this reason.
Railroad issues were under pressure.
There were declines in prime issues,
such as Atchison general 4s, Norfolk &
Western Is and Union Pacific first 4S.
In the junior group Missouri-Pacif1c IS.
Cotton Belt As. Great Northern rs and
Northern Pacific IS lost y to points
InduStrials we're also heavy.
In the foreign department German
government issues sagged At one time
there we're no bids for Dawes repara-
tions rs, which were offered at as.
Later they sold off point at As. Most
Europeans were heavy, as were japanese
issues.