Evening star., 1933-11-10
BONDS CONTINUE
DOWNWARD TREND
Initiation Fears and Flight
From Dollar Blamed
for Decline.
BY JOHN A. CRONE.

Special Dispatch to The Star.
NEW YORK, November 10.-Bonds
continued to reflect infationary fears
and consequently a flight from the dol
lar today, as United States Govern
ments, municipals and numerous prime
corporate obligations declined and for
eign currency descriptions, especially
Government loans and some domestic
speculative securities advanced.
Losses ranging from fractions to
nearly point in the forenoon brought
Liberty and Treasury issues to new low
levels for the current movement, and
in some instances to new minimums for
the year, as for example the new Treas
ury 81. -4i4s, which were down more
than 3 points from their issuance price
on November l.
The offerings of United States Gov
ernmentS, which have put eight of these
issues below par, continued to come
from individuals throughout the coun-
try. During the forenoon offerings
were reported as somewhat lighter than
in the same Thursday period. but again
there was a lack of nearby bids which
permitted prices TO move down rather
readily.
Reserve Buying Cut.
The Federal Reserve System during
the week ended November reduced
its open market purchases Of United
States Governments to $4,000, 900 from
S20,000,000 bought the preceding week,
SIS. .oo0, 600 two weeks previous. s31 .ooo,-
900 three weeks before and S35. 900 900
a week for the eight weeks before that.
Tne reserve system: a seml-govern-
mental institution offers no explana-
tions for this policy.
Meanwhile the early weakness in the
dollar abroad brought about strength
in foreign currency issues. Polish rs at
once advanced to new peak price.
Canadian National IS Of July. 1869,
Canadian Northern 6i5s of 1946 ard
similar securities sought new pinnacles.
Canadian SIS were somewhat higher.
Demand for British issues was some
what slighter in the forenoon today
than on Thursday.
The recession Of prime corporate OBJ
legations started in the high grade rails.
Atchison General As at one time were
down more than a point. Union Pacific
first IS were of about as much. Then
prime utilities like Consolidated Gas
debentures and Hudson County Gas
first IS yielded more than a point
Kings County Electric Power & Light
IS broke more than two points. This
trend also was observable in middle
grade issues such as ST. Joseph Railway
g. Lighting IS.
Chesapeake Corporation IS Up.
Chesapeake Corporation SIS opened up
fractionally as a result of the CONVEX
sion of SIS, ,l07 900 of these bonds through
their conversion into the common stock
Of Chesapeake g. Ohio Railway. Some
n1iddle-grade rails followed the down
ward trend taken by prime issues. This
included issues such as Chicago g.
Northwestern general 3izs. Southern
Railway general 6lzs and New Haven
Consolidated As.
Container Corporation SIS of 1943,
with warrants, opened of point.
Lehigh Coal & Navigation AIS of
1854 initially appeared Il points lower.
Amusement debentures were lower,
though rather inactive
Government bonds rallied partially
in the afternoon, but were still under
the finals of the day before. The re-
covery was not convincing and dealers
characterized it as technical High
grade domestic issues continued in sup
ply and the more speculative descrip-
tions, especially among the rails such
as Great Northern rs and St. Paul
5s, sold off
(Copyright, 1880