Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-08-03
BOND PRICES TURN
SHARPLY UPWARD
Market Reaches New High
Level for Recovery in
Late Rally.
BY F. H. RICHARDSON.

Special Dispatch to The Star.
NEW YORK. August 3.-Irregular in
quiet trading during NEST of the seS-
sion today's bond market recovered
sharply in the last two hours and closed
at a new high level for the recovery.
Activity, which had fallen of on
the decline. increased rapidly as prices
rose. The upturn came with rally in
stocks In addition there was a brisk
demand for American securities from
London and other European centers.
Rail bonds were especially strong.
A feature in the late trading was
the brisk buying of Canadian issues
Grand Trunk rs went to new high.
So did Canadian Northern 6I2s and rs
and some of the Canadian government
bonds Canadian Pacific As were strong
The market opened with a heavy
tone. News from abroad was not en-
couraging. Sentiment in Germany for
the reduction of private debts by cut
ting interest charges or by CONVEX
sion operation was reported to be gain
ing favor. Young Plan 51as and
Dawes Preparations Is sold on sharply,
but these issues, which admittedly can
not be touched under any conversion
scheme, subsequently recovered.
The rest of the German list, how
ever. was d1lcNVC0 ny bAlC ClAAGesA
situation of the Deutsche Bank, which
has been refused dollars by the Reichs-
bank with which to meet S25,OOO, 0OO
maturity September /. The bank mas
already retired S10,000.000 of the ma
turity by open market purchases ana
another $4,000, 900 is held in Germany
The balance of the bondholders will be
asked to accept either payment in Ger
many In marks-which cannot as yet
be exported-or submit to an extension
of maturity for about three years.
Deutsche Bank IS, the maturing issues,
were a point higher because OF the eX-
celIent condition reported by the bank,
but German municipals such as Frank
fort 6I5s. Cologne 612S, Berlin IS, saxon
rs and Prussia IS were inclined to sag
because of the threat to their own
interest service.
Another diScouraging development
was the second technical default on
Austrian debt service. While TINS mas
not actually resulted in an interest
default to the bondholders, the Bank
for International Settlements. trustee
for the Austrian Is OF 1857, mas not
received the installments due July
and August 1. This Is another ex-
change situation which may result IN
interest defaults on other issues. Aus
TRAN Is, Hungary bH2S, SeIpIdn 10, ~
land rs and other European issues tnaI
might conceivably be affected by the
same troubles. sold of.
The domestic list was inclined to
recover the ground lost in Tuesdays
mild reaction and in the early selling
today. The rails were again in the
lead. At the same time there were SOFT
spots throughout the list, including
Burlington As, Baltimore & Ohio rs,
Erie Refunding SIS, Warner Brothers
pictures IS, Western Union IS and IN
ternational Telephone SIS.
United States Government bonds
we're steady and inactive. The new
canital market was encouraged by the
rapid oversubscription of the Common
wealth Edison S1S,0o0,0Oo issue Of 30
year 51As, which was offered today at
SO and quoted at premium after the
books had been closed.