Evening star., 1933-11-18
STRENGTH SHOWN
BY FOREIGN BONDS
U. S. Governments Move Un-
evenly and New York Trac-
tion Issues Advance.
BY JOHN A. CRONE.


Special Dispatch to The Star.
NEW YORK, November iS-Strength
OF foreign governments, especially
French loans. and local fractions fea-
tured bond dealings on the Stock Ex-
change today. AS the session progressed
United States Governments were a
trife irregular, Reich issues improved
and there was better tone in most
domestic corporate bonds.
Sharp recovery in French govern
nents followed the improvement in the
French franc early in the session in
terms Of the dollar. The betterment in
Reich issues undoubtedly was due in
part to the clearing up of misunder-
standings regarding the December
moratorium payments. Under the
scrip-cash payment plan, holders of
Reich loans will get the interest dis
bursements contemplated under the ex-
change transfer agreement.
The cash for such payments is now in
this city and IN view of the dollars de-
probation in terms of the mark. holders
will gain slight advantage if the scrip
is used in Germany. The calling of a
new creditors conference in Berlin next
month did not refer to matters already
arranged for December disbursement,
but rather future interest payments next
year.
Traction Issues Rise.
The barring. by the Appellate Divi-
sion of the. New York Supreme Court
of the use of New York City taxes to
make up the deficits of the new NUM-
cipal subway, thus in effect subsidizing
that carrier. was hailed as the death
blow to the scent subway fare. Specu-
lators accordingly bid up local traction
securities.
Interborough Rapid Transit first re-
funding SIS, always the popular specu-
lative medium in this group, were
whirled several points at times. Third
Avenue Railway adjustments and New
York Railway incomes also were turned
over in volume at advancing quotations.
Naturally such movements benefited
some of the less speculative in this di-
vision such as Brooklyn-Manhattan
Transit IS, New York Railway first 6s.
Interborough refunding rs and Third
Avenue Railway refunding As.
Following the rally in French gov
ernments, the municipal obligations of
that country stiffened. Irish Free State
5s which are payable in sterling as
well as dollars, and soon may be con-
verted into a lower interest-bearing
coupon issue, payable in currency other
than dollars, were whirled few points
Polish loans were somewhat reaction
ary, as were British issues.
Rail Group Declines.
Profit taking in Dominion of Cam
ada government and railway issues con-
tihued. There was lessened demand
for Dominion utilities and municipali-
teS
ST. Joseph SIPS proved to be one
OF the weaker metal debentures.
Speculative oils were not much
changed, but high-grade petroleum
issues such as Humble Oil SIS, Stand
ard Oil of New Jersey IS and Atlantic
Refining SIS displayed hardening ten
denotes. Low-grade steel debentures
likewise were neglected though prime
issues IN this section frmed.
Junior rails moved irTegularly. st.
Paul adjustments and the gold" SIS
most of the time were inclined to be
heavy, but Chicago & Northwestern |
convertible 4As and Denver & Rio /
Grsnde Western IS Of 1855 advanced 4
en- fair volume
Chicago. Burlington & Quincy As Of 4
i949. Atchison General As and Union /
Pacific first As led the prime rails late |
in the session. Most of these active !
issues were higher, though in this list /
as well as elsewhere there was a high
degree OF SelecCYlty, often between IN
diYidual issues of the same company
as well as between securities in the
same general grouping.
This tendency was especially noted in
the western Union mortgages. New
York Central provided another example.
Lake Shore 3l2s, for instance. readily
yielded point and with equal alacrity
New York Central 31as rose that
amount.
United States governments, with
few exceptions, such as the Treasury IS,
finished above their levels of week
ago despite their wide fluctuations in
the past six sessions. Offerings of Fed
eral bonds in small amounts and in
block overtime counter were reported as
much less than last week. The general
market finished moderately active and
irregularly higher.
Copyright, 1933)