Evening star., 1933-09-22
F|RMER TONE SEEN
IN BOND MARKET
Government Issues Stiffened
by Dollars Gain and
Reserve Policy.
BY JOHN A. CRONE.

6peclal Dspatch to The star.
NEW YORK, September 22.-Ffm-
ing price tendencies developed in bonds
in forenoon trading on the Stock Ex-
change today United States Govern
ments stiffened on the upturn OF the
dollar and the purchases of $35. .000, 900
of such securities during the week ty
the Federal Reserve system.
Junior rails rallied moderately dur
ing the first few hours, largely because
of specific corporate developments.
Foreign descriptions were dull and ir-
regular Miscellaneous speculative in
dustrialS however, were not without
some wide downswingS.
The market closed quiet and steady
for domestic issues, but irregular for
foreign descriptions. Speculative rails
were slightly higher and United States
of the day. A little pressure appeared
against the Brazilian bonds. but the
European gold issues were firm.
Railroad and public utility securities
had background Of specific news de-
velopments for their movements. Bal
timore & Ohio liens hardened on Presi-
dent Willards statement that the road,
barring unforeseen developments, prob
ably would earn interest charges by a
substantial margin this year, after
showing margin for such coverage OF
S500,000 in the first nine months. Chi
cago & Alton also is expected to cover
its charges this year.
Betterment in the st. Paul adjust
ments during the first hour coincided
with statement from President Scan
drett that the road would just about
cover its interest requirements during
August, following the letdown Of
traffic.
Florida East Coast bondholders are
exhibiting great interest in the hearing
here of suit to force the Henry M.
Flagler estate to pay defaulted inter-
est on construction of clause In the
will of Mrs. Mary Lily Flagler Bing-
ham. establishing 20year trust fund
to be applied to the maintenance and
administration of the railroad.
international Telephone debentures,
as well as these of their subsidiary,
Postal Telegraph, improved on the half
yearly earning statement, which showed
a larger net loss than in the same period
of 1882, but recovery of income in the
second quarter Net current assets IN
foreign currencies appreciated $4,500, 900
during the period.
The various Van Swerigen rail issues
braced, followed by an increased de-
mana lot new 1OTk CeQtT2l oeSCIlp"
tions. In the gilt-edged rail division
Union Pacific first As and Atchison Gen.
eral As were steady
Around midday Chicago & North
western 43ls were up about points
and the ST. Paul SIS approximately 3
points. Wabash AZ Of 1878, after be-
ing pressed for sale earlier, were then
up points. Erie IS of 1878 were up
the same amount and other issues OF
the better type also pointed upward.
Rail and utility issues for the last
fortnight have been sold by European
investment trusts, development not to
be wondered at in view of various
statements made on these industries
by American politicians Apart from
technical market factors, however,
bond men today pointed out that III
creased consumption of goods would
neceSsitate the greater use Of rail IA
Cilities and the spread of employment
already is being felt by real estate
agents, who report many doubled-up
families now seeking separate apart
ments. The latter trend is distinctly
helpful to power and light companies,
whose profits generally are greater on
domestic than on commercial sales.
(Copyright, 1o33.)