Evening star., 1932-10-09
INVESTMENT BOND
MARKET IRREGULAR
Prime and Foreign Issues
Well Supported, but Junior
List Says.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, October 8.-The bond
market pursued an erratic course IN
the past week, Junior issues closing the
period lower by narrow margin Whlle
bonds remained steady ana
foreign issues were higher.
Political influences and their refec-
ton in the stock market had most 10
do with the rather heavy selling OF
bonds Wednesday and Frloay These
factors came at a time when the mar
ket was marking time, waiting for buSl-
ness to show more of the improvement
that has already been anticipated by
security prices. and the selling dis
turbed long spectators in bonds who
might otherwise have held on for an
extended advance That they will again
enter the Junior bond market when
favorable time comes goes without
saying.
New Capital Market.
Even at the lowest of the week the
market had only sacrificed 5 points OF
18 average points gained in the long
bull market OF July and August; and
where a profit has once been made,
there the Speculator is apt to return,
all market aXioms to the contrary not
withstanding. Much depends on the
elections next month.
From an investors standpoint the
week was notable one, in that it wit
messed unusual activity in the new
capital market combined with firm
prices for prime corporation bonds. The
weeks total OF new offerings was about
SOS, ,000,000 and, unlike the week before,
it was composed of small municipals
and fair sized emanationS of the better
grade utility companies, such as Detroit
Edison and Connecticut River Power,
both of whose issues were well taken.
In the previous week offerings totaled
about the same, but S60,000,O00 con-
sisted of q Canadian government loan.
The point of chief interest in the
bond market continues to be the study
of situations where receiverships or
reorganiZationS are pending or in exist
ence. There was one significant de-
velopment in the week. A small New
England textile concern that had de-
faulted on the maturity of its first
mortgage bonds, and had had tolerance
Of its bondholderS for that length OF
time, paid the interest on the defaulted
bonds for the past three months. This
was the direct result of an improve
ment in the company's buSiness-an
improvement that enabled it not only
to pay the interest at maturity but the
interest since maturity and to go to its
bondholders with a proposal that If the
bonds were extended g number of years,
and business keeps up, the whole issue
viii eventually be paid with full in
terest in the interim. The bondholders,
who faced situation where foreclosure
would have virtually wiped out the
assets, were glad to accept this COM
promise.
Foreign Dollar Bonds Strong.
This is a situation typical of hun
dreds in the country today particularly
among small businesses.
Foreign dollar leans were strong all
week. Ard this in the face of the
disarmament deadlock, falling market
for common stocks both here and in
London. and a general recession in
commodity prices. The improvement
in world confidence has apparently
risen above the level where it can be
affected by minor market swings
(Copyright, 1929