Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-15
BONDS SLOW DOWN
AS PRICES DECLINE.
Market Reverses Direction
After Heavy Turnovers
for Two Days.
BY f. HI. RICHARDSON.

Special Dispatch to The Star
NEW YORK, January 15-The bond
market reversed its direction today
with trading down again to nominal
proportions after the heavy turnover of
Wednesday and Thursday. United
States Government issues dipped sharp
" after their large recoveries of the
past two sessions.
The opening was irregularly lower.
The New York Federal Reserve Bank,
in it's failure to cut the rediscount rate
and in the decreases s~oWn in out
standing credit and investment in
United States Government bonds,
showed that it had no immediate in
tention of forcing down money rates
or of adding substantially to its in
vestment portfolio.
DEVELOPMENTS abroad were of a
negligible nature No definite move in
European bonds is expected until the
Lausanne Preparations Conference gets
under Wav. There was modicum of
comfort for investors in South Ameri-
can descriptions in the statements by
Brazil, Chile and the Argentine that
every cent of bonded Indebtedness will
eventually be paid At home, the mar
ket was somewhat disappointed at the
DEVELOPMENTS of the opening of the
Chicago rail wage conference, but
still hoped for a successful termination.
United States Government issues
sagged y to over point. Trading in
them. however was not nearly as heavy
as in the two previous sessions and
offerings did not approach the volume
moving in the decline of 10 days ago.
The maintenance of the rediScOunt rate
had much to do with the reversal Of the
trend in this market. Had the rate
been cut there would have been some
reason. even in the face Of the new
financing the Treasury must do this
year, for pushing Governments up to a
q per cent yield basis. Once again
Treasury IS we're the heaviest issue,
losing more than point on the sale
of only a few bonds. Treasury 4 AS
dropped nearly point. The Liberties
had fractional losses.
In the railroad list proft-taking was
the paramount factor. Issues such as
Nickel Plate IS and st. Louis South
western Consolidated As, which have
more than doubled in price since De-
cember II, were down 4 to 5 points.
Substantial losses occurred in Erie SIS,
Baltimore & Ohio AIS, MiSsouri-Pa-
cifc SIS. Denver & Rio Grande Western
IS and similar issues.
High-grade railroad bonds, along
with prime utility descriptions, were
generally steady. Some industrials
moved down with junior rails.
In the foreign list German govern
ment SIPS and Dawes reparations Is
were subjected to some realizing, but
gave ground slowly. German Central
Bank issues were lower. Most other
Europeans were slightly lower, al
though British 512s gained about a
point in response to higher quotations
for sterling. In the South American
list Argentine IS of various maturities
and Brazilian government obligations
were up to 4 points. Australian and
japanese issues were little changed.
The bond market opened irregularly.
Railroad issues, which have recently,
scored large recoveries, were under
pressure from prof1t-taking and. as a
result there were small declines in de-
scriptions such as Erie SIS, Missouri Pa
cific S. Nickel Plate AIS and Western
Maryland As, Canadian railroad and
government issues were generally higher,
owing to the optimistic speeches at the
annual meeting Of the Royal Bank of
Canada.
In the foreign list, German govern
ment issues were unchanged. Most
Europeans were inactive. Italy Is gained
small amount. Greek IS were off
South American and japanese issues
were little changed