Evening star., 1933-09-05
BOND PRICES DRIFT
W|THFEW CHANGES
Hiqh- Grade Rails, IndustriaIs
and Utilities Bought on
Concessions.

Special Dispatch to The Star.
NEW YORK, September 5.-Bond
traders did not get down TO serious
business after their holidays. possibly
because there had been no news to
give them any better idea of the i'm
mediate future of the market than they
had all through the dull trading Of
August. They continued to pick up
high-grade rails, industr1als and utility
bonds whenever concessions were made.
The result during the forenoon was a
small volume of trading and few not
able changes in the better types.
Even with the dollar weak, United
States Treasury issues kept firm posi-
ton. with most bonds selling a shade
higher Secretary WoOdin has 10 days
in which to decide whether he will dis
turb First Liberty 414s on December
IS. II no call is issued before Sep
tember Is. the inference most bond
traders will draw will be that one or
more series of the Fourth 4l4s will be
called for redemption on April IS, 1884.
Risk Is Lessened.
Six months notice must be issued II
this is the TreaSury'S intention, but
now that the Government Is maintain
ing a large daily balance and has a
preferred position as a public borrower,
the risk involved in calling one or two
billion dollars Of bonds on six months
notice is not considered so great
Argentine bonds turned heavy
shortly after the opening and con-
tinued to decline during the morning.
losses ranging up to more than 5
points. New York was not as bearish
on German bonds as London. for the
losses In Reich 5l2s were fractional,
whereas the London close revealed
greater weakness. Japanese govern
ments were slightly higher. Cuban IS
had a better market than might have
been expected in view Of the disquiet-
ing DISPATCHES from Havana. Danish
a1as gained better than p point.
In normal times the financial COM
munity is wont to start talking on
the day after Labor day. about the
prospects for public financing. Usual
iy a round figure of new issues is
given. In the present instance invest
ment bankers are just as much at
sea about their immediate future plans
as they were month ago.
Securities Act Blamed.
The securities act with its sitting
provisions, Is responsible for this in
ertia, Until the Federal Trade Com
mission has clarified some of the pro-
visions of the act, this condition is
likely to continue.
However. although some industries,
notably the public utilities are known
to be carrying large bank loans. as
result of capital expenditures in 1881
and early 1882. they are not as wor-
ried about them as they were earlier
in 1888, when the banks were pressing
for reductions With power output
pointing steadily upward, the banks
now consider their utility loans much
more secure In some cases they are
telling their stronger utility custom
ers to be in no hurry to amortlze these
loans. Normally these utility debts
would have been funded into long term
debts, but the securities act now
stands in the way.
Dutch East Indies 5l2s and IS be-
came the outstanding feature Of
strength in the afternoon. all issues
going we'll above their previous high
record prices
American Metals 5las stood out
prominently throughout the day on &C
count Of their activity and strength.
Nickel Plate 4l2s were pressed on the
market in large volume, but held their
ground.
The most direct reflection Of the un-
satisfactory news from Cuba was in the
decline of Cuban public works IS,
which broke sharply. on limited offer
tngs. Cuban government bonds were
steady.
(Copyright, 1933)