Evening star., 1933-05-21
UPSW|NG IN BONDS
PUTS MANY ISSUES
At HIGHS FOR YEAR
Gains Are Well Scattered
Through List During Weeks
Trading.
Special Dispatch to The Star.

!
! NEW YORK, May 20.-Many bonds
| this week have reached new high prices
for the year, with a revival in specula-
tive interest in them after the reaction
at the end of the previous week, when
proflt-taking became an important
| factor.
A new feature has been the strength
in industrial issues. which had been
neglected during the movements of
great size in rails and public utilities.
1t represents an appreciation of the
| improving condition of trade, out of
which the bonds of companies that have
been "in the red" for months should
/ benefit.
Interest in Junior Bonds.
While the market has attained a
| broader character it has not lost the
benefit of wide public and professional
interest in junior railroad bonds. These
have continued to express the mood of
the buying interests, as 1t fits in more
closely with what is being done in the
market for common stocks. Beginning
with issues that were quoted chiefly in
the price levels between 10 and 20, and
of which number were either in de-
fault or approaching the period when
interest on them would be suspended
the demand has reached into issues of
second and third grade, or those
previously quoted in the 30s, 40s and
Sos. This latter group is the one in
which the best buying has been taking
place this week and in which most of
the new high prices for the year have
been made.
This demand has been predicated on
| the increase in railroad car loadings,
| which in some instances now exceed
those of year ago. 1t is realized that
moderate expansion in traffic would
represent the difference between the
| deficit of 1882 and ability to cover
| fixed charges in 1888. Most of the
roads whose intermediate bonds have
| been strong recently are those of
| normally high credit, including New
York Central, Southern Pacific, Great
| Northern, Northern Pacific, Illinois
| Central and Chicago & Northwestern
| All of their junior bonds have this year
| sold at so cents or less on the dollar.
| There has been a steady tone to the
market for the first grade rails, which
apparently have about reached the
maximum level consistent with present
| circumstances.
| The strength in the industrials has
not been confined to any one group.
| 1t has included bonds of the rubber
and tire companies, of the oil pro-
| ducers, in spite of the chaos in the
oil industry; Of paper manufacturers,
iron and steel corporations, chain
stores. meat packers and sugar pro-
ducers. Many of the bonds that have
been conspicuous are ordinarily mac
| tive and are subject to sharp fluctua-
tions on limited amount of trans
| actions
The public utilities have been less
prominent, although the legal issues
have improved considerably. In spite
of this, however, comparison of the
| low prices of the year Of many Of the
public utility debentures and third rate
operating company issues shows about
| the same percentage of increase as in
the lower grades of railroad obliga-
! tions.
Foreign List.
| Operations in the foreign list have
| been influenced by the German political
situation. At first this aroused con-
Germ over the possibility that Chan
cellor Hitler in his speech to the
Reichstag might provoke further dis
cord. The conciliatory tenor of his
| address quieted these alarms and led
| to a recovery not only in German loans
| but in other European issues.
Markets for United States Govern
ment bonds this week have been quieter
and less uniformly strong than in the
week previous There has been no evil
dence Of buying by the Federal Reserve
Banks. The proposal Of the admins
tration to issue additional bonds, which
will bring the total Government debt
I'D to level exceeding that in wartime
has given a little chill to he market
|