Evening star., 1933-12-31
BOND LIST SHOWS
BIG IMPROVEMENT
Record Is Brighter, Despite
Anxieties Intensified by
Money Fight.
BY BERNARD S. O'HARA,
Associated Press Financial Writer.

Associated Press Financial Writer.
NEW YORK.-In spite of the weight
of financial anxieties. intensified by
monetary controversy, the record Of
the 1888 bond markets is brighter in
many respects than that of any of
the preceding depression years.
Corporate issues reversed their long
downward swing sufficiently to establish
a better plane of values at the year
end. Investment interests were in
clined to accept this as hopeful sign,
although they explained that a con-
siderable part of the recovery was di-
rectly attributable to steps taken by
agencies of the Federal Government to
bolster investment confidence.
The market had little opportunity to
regain anything like pre-depression sta
bility. however, and the new issue
BUSINESS bus ness Temained ed stagnant During
was subject to great stress and trial
in consequence of heavy and persistent
liquidation from institutional and other
sources in connection with the wide
spread barking difficulties.
Peak Prices in July.
Declaration of the Nationwide bank
holiday early in March conceded with
the lowest values and the nadir OF
investment confidence. Resumption of
normal banking facilities 10 days later
marked the beginning of slow, but
steady climb in prices to peak levels
in July.
A new element of disturbance en-
tered around the end Of Summer with
lio hut doraondc
various quarters for currency imitation
Vague worries on the monetary situ-
alton we're transformed into definite
fears in investment quarters when the
Government announced its gold buying
policy in october, and in the ensuing
adjustment of market values United
States Government securities were
pushed down at more precipitouS
rate than were the corporate issues.
Confidence Renewed.
This cycle of investment selling was
halted by renewed confidence in the
dollar and fixed income securities, fol-
lowing the Treasury's announcement
that its December Is obligations would
be cared for through an issue of "a
per cent one-year Treasury notes.
Previously fears had existed in some
quarters that the financing might be
effected through an issue of green
backs.
The recovery thus generated gained
fresh impetus from the subsequent an
nouncement Of heavy over-subscrip-
ton of the $3.50, 100000 of Treasury
notes.
Money and credit conditions, on the
surface at least, had little influence on
the course of bond values.
Money Rates Vary Little.
Except for a furry occasioned by
the March suspension Of banking, rates
for call and time funds and other forms
Of credit showed little variation. The
rate for demand funds jumped from
l per cent to per cent in mid-March
but quickly reverted to the low figure.
Later the rate eaSed to z per cent.
to remain at that level for several
months until the December transfers
of funds brought return of the l
per cent rate
Time money had an extreme range of
y of per cent to per cent, with the
latter in effect only for brief period
in March.
Prime commercial paper was quoted
at q high of per cent and low of
IL per cent, with the latter rate re-
fecting the markets tone during the
greater part of the year.