Evening star., 1932-02-02
BONDS ARE HIGHER
IN SMALL MARKET
Japanese Issues Continue to
Sag on News From
Far East.
BY F. II. RICHARDSON.

special Dispatch to The Star.
NEW YORK, February with the
exception of the Japanese group. bonds
were generally higher today, though
trading was Of unimportant proper
tions
The market opened firm rejecting a
favorable Interpretation of the con-
certed action taken by England and the
United States to force a truce in
Shanghai and submission of the Sino-
Japanese dispute to arbitration under
the kellogg treaty.
The break in the Japanese list was
as wide as in any single session since
the start of the Shanghai trouble.
Japanese 6l2s, after closing Monday at
77l4. were forced down until they were
73 bid, 74l2 asked. The next sale was
at "a and later they dropped to a net
loss OF over 4 points. japanese govern
ment 5l2s we're off more than points.
Toxic 5l2s, Toxic Electric 6s and Yoko-
hama 6S had small losses but Shin
yetSu Electric 6l2s broke 6 points, and
Great Consolidated Electric Power of
Japan 6l2s were down 3 points and
more.
This selling was chiefly due to nerv-
BUSINESS over the possible outcome of
the warfare in China. for Japan's
ability or intention to pay her interest
and sinking fund amounts was not
questioned. This was evidenced by the
fact that Toho Electric IS, which are
due this year clung to within points
OF their maturity price, while the Is of
the same company, due in 1855, were
off 2 points. and selling close to so
cents on the dollar.
The only other weak spot in the for
lIl lGt in Mo- L.. ,l,li
cations, all of which dipped 2 to s
points because of the default of Febru-
AIRY l interest and the lack of any ac-
ton by the new South Wales govern
ment to take care of the payment The
Australian federal government was not
involved in the New South Wales de-
fault. and Australia SIS rose 4 to points
European bonds were generally firm,
with the Germans making small gains
In the domestic list most railroad
bonds were l to 2 points higher, with
out much activity in any Of them
High-grade bonds were firm. United
States Government bonds we're ! 80 to
8 80 above Mondays closing levels.
Prime corporation investments. such as
Atchison general As, Norfolk & Western
As, American Telephone SIS and ConSoli-
dated Gas 5 2S, were steady.
The new capital market was quiet,
the syndicates waiting to offer two large
utility issues still pending, believing
better market will come in a few days
Meanwhile the Street was authoritative
ly informed that the syndicate selling
the New York Edison SIS last week had
oversold the S25 100000 issue by $4,000
900 and had to pay as much as a per
cent premium to cover its position.
Bonds were firm at the opening,
Prices reflected the action Of stocks
to large extent, but on domestic rail-
road issues were supported also because
of the hopes entertained of action from
the Domestic Finance Corporation,
which was due to begin operations today
Missouri Pacific general Is. Nickel Plate
AIS. Erie SIS and other Junior carrier
bonds were fractionally better. Indus
trials such as Texas Corporation SIS and
Dodge Bros 6s. were firm. United
States Government long-term descrip-
tions were active and narrowly higher
The foreign list was active, with de-
clines of a point in japanese bonds and
s points in New South Wales bonds,
Some of the latter are in technical de-
fault. There were gains in the Ger
mans and other Europeans,