Evening star., 1932-01-26
BONDS ARE STRONG
IN SMALL MARKET
Reports of impending Rail
Wage Agreement Tend
to Aid Prices.
BY F. III. RICHARDSON.


NEW YORK, January 26-Bonds
were strong today on small volume
of trading.
The investment market opened with
an optimistic tone Reports from Chi
cago that an agreement on a 10 per
cent wage reduction would surely be
reached before night by the rail en-
ployes and executives buoyed up rail-
road bonds The renewal of negotia-
tionS on German reparatiOnS by the
British and French injected strength
into foreign dollar bonds EXpecta-
tions as to the dividend decision of the
directors of United States Steel were
sufficiently optimistic to lend Steadiness
to both the stock and bond markets.
Much attention was directed to the
bonds of the st. Louis Southwestern
by the provisional approval made by the
Interstate Commerce Commission for
the purchase of the road by the South
ern Pacific. st. ouis-SouthWestern
consolidated is, due this year, advanced
IA points at one time. This represents
rise Of SO points from the low price
reached in December and with one ex-
ception was the biggest percentage ad-
vance in any hond on the current re-
covery. The expection is found in
Nickel Plate 6S, which today sold around
55, or more than 40 points above their
December low.
Other rail bonds showing strength to-
day included Erie S. Allegheny Cor
portion SIS, MisSouri-Pacific SIS, North
ern Pacific IS, Western Maryland As
and many others of comparable quality.
Industrials advanced with the rails,
though there were fewer transactions
in them. United States Rubber SIS
were point higher. McKesSon & Rob-
bins 5l2s, National Dairy Products 5I4s
and Armour of Delaware SIPS were
firm. Western Union S. International
Telephone SIS, American g. Foreign
Power SIS and others of the semi-Spec-
ulatlve utility group were fractionally
better. High-grade obligations of rail-
roads and utilities were unchanged.
United States Government long term
issues were slightly higher With most
Liberties and Treasures selling around
$50 per cent yield basis, the market
was still inclined to favor a 5 per cent
rate for the bonds of the new Recon-
struction Finance Corporation. Mu-
nlcipals were little heavier today be-
cause Of the recent f1rming of money
rates. New York City IS, which went
to point premium on the day of Of
fering, were quoted today at par.
In the foreign list the most active
issues were German government SOS
and Dawes reparations rs, both of
which had substantial gains German
Central Bank issues, German munici-
pals and corporation obligations fol-
lowed along.
Bonds were firm at the opening.
Wall Street was hopeful that some
thing constructive might result from
the new Franco-British negotiations in
regard to reparationS, and foreign bonds
were marked up fractionally. German
government 512s, Dawes Reparations rs
and German bank issues all were higher.
British 512s, Canada As and Australia
IS were f1rmer with sterling. French,
Belgian and other European bonds were
firm.
In the domestic list railroad descrip-
tons such as Erie SIS and Missouri-Pa-
enc IS were slightly higher. Prime
bonds, like Atchison generl 4s and
American Telephone 5s, were un-
changed. United States Governments
also were firm. ~