Evening star., 1932-01-22
BOND PRICES GAIN
IN ACTIVE TRADING
Market Absorbs Overnight
Selling Orders and Rails
Lead Advance.
BY F. II. RICHARDSON.

Special Dispatch to The Star.
NEW YORK, January 22.-Bonds
were firm again today, with railroad
descriptions inclined to resume brlsk
advance Trading was fairly active,
The market opened with STEADY
tone and readily absorbed an over
night accumulation of profit-taking
sales in the speculative types Ihe IN N
slant success of the New York City
slO0 900 900 6 per cent loan proved a
bullish influence in all parts of the
investment market. Bonds of the threa
and four year maturitieS were quoted
at a slight premium IN counter trading,
while the five-year bonds, which seemed
to be much in favor, were quoted at
1OO34 to 101.
It was an interesting sidelight on the
present bond market that New Yor6
CITY bonds, usually the most conserva-
tive of securities, we're the medium for
heavy speculative buying. Many
bought the bonds today on the theory
that in a revival of the money market
New Yorks corporate stock might very
we'll advance to a 4 per cent yield
basis, which would yield purchasers OF
the 6's at par a profit of 9 points.
The entire municipal list strength
ened. Bonds of other cities, such as
Philadelphia, Pittsburgh, San FRANCISCO
and many county issues, which nave
recently been quoted around 300 10
$40 per cent basis, were today IN
demand around $50.
The railroad list reflected strong
market for railroad stocks, based on
optimistic reports coming from. the
Chicago wage conference. Nickel Plate
6's. due this year, were more tran D
points higher at one time and more
than 40 points above their December
low. Gains of point or more occurred
in Nickel Plate 412s, mobile o. ONO
AIS, Missouri Pacific general As ana
Erie SIS. g.
There we're small declines in few
issues that have recently had wide
gains such as Alleghany SIS, Southern
Pacific 4l3's. Southern Railway As and
Rock Island 4l2's, but these were
exceptions. .o.;oo,,,,
some industrials were fractionally
lower on profit taking, but most OF
them were unchanged to shade hlgner
Dodge Bros. 6s, Goodyear 5s, National
Dairy Products 5As and many others
we're firm.
United States Government issues were
again heavy. The Treasury 4As were
most active and dropped about one-halt
point. The Treasury IS were on nearly
a point. Liberties eased. This followed
firmer demand for money, with the
time money rates showing a slight ad-
vance over Thursdays levels. There
was also some switching from Treas
uries into the New York City loan.
Foreign bonds were irregular. Ger
man government issues, after opening
about 2 points lower, recovered only
partially, and other Germans sagged
London and Paris markets were both
dull pending definite decision as to
whether the Lausanne Conference has
been abandoned or only postponed.
Bonds we're steady at the opening. -,
The prices of most domestic railroad
bonds opened off a shade under mod
crate volume of overnight selling or
ders. but these declines we're quickly
made up in early trading and most
speculative issues of the type OF Erie
SIS, Missouri-Paciflc 5s Nickel Plate
4l2s. Frisco 4 rs and Chicago & North
western 434s were little changed. In
dustrials were firm. Dodge Brothers
6s gained fractionally. Utilities, like
American Telephone IS, Consolidated
Gas 5t2s and New York Telephone a rs
we're fractionally better. United States
Government issues were narrowly lower.
In the foreign department, German
government issues dropped nearly 2
points and German munlclpals ana
bank bonds also went lower. Canadian
government issues were higher with
Canadian exchange. British 512S were
off a shade.