Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-01-08
INVESTMENT BOND
MARKET IS STRONG
DURING PAST WEEK
U. S. Government and Gilt
Edged Corporation Issues
Make Good Gains.
Special Dispatch to The Star.


NEW YORK, January THE bond
market, after hesitating briefly on the
first trading day of the new year,
Surged upward In succeeding days at
faster rate than In any week since the
August advance.
Utility bonds of higher grade made
their best prices in two years other
groups established their best prices on
the movement Foreign dollar bonds
continued the advance started in De-
cember. Trading increased to active
proportions and there was rejoicing
among the members of the bond crowd,
who had been on pretty slim commits
sion dietmfoF NSoFle weeks.
The turn Of the year brought no
great changes in the business situation.
However, better sentiment has prevailed
all Winter, when compared with the
same period of 1881, and there is ten
dency to ignore adverse news. The
market has reached the frame of mind
where railroad receiverships. dividend
and such things are taken with
cquanimity.
Government Economies.
Nor has politics proved as yet to be
the unsettling factor that was antic-
ipated Federal economies are slow in
coming, but State and municipal gov
crnmentS have been quick to fall into
line in the retrenchment parade. New
York City's new mayor, in his inaugural
speech, surprised the enemies of Tam
many Hall by the scope of his proposed
expenditure cuts. New York City bonds
had sharp rise as a result Munic-
ipals generally have been firm in the
Norf foxf he Il tI,a. Il ,a1f,z
vestment demand proved a further
FLIP to them.
The foreign situation has ceased to
trouble the market very much. I'm
provement in Germany's exports in the
past year has enabled the Reichsbank
to make available to German corpora
tons and municipalities supplies of
dollars needed, not only for service of
their external obligations, but also to
purchase their own bonds in this mar
ket for the purpose Of retiring them
In fact, many Europeans have been
able to buy external dollar bonds listed
in this market for individual invest
ment. A group of German bonds have
had an average advance of more than
Is points from their 1882 lows Eu-
ropean dollar issues generally are now
selling from 10 to IS points above their
lows
On the other hand, political develop
ments in America have had some effect
on European markets. Senator Borah's
speech in the Senate was not inter-
preted in Wall Street as containing any
serious threat of imitation, yet in Eu-
rope 1t was used as an excuse to sell
dollars, with the result that the franc
rose far enough above the point at
which gold exports to the United States
are profitable to assure the end of the
gold movement for the present IN
doubtedly sterling would also have had
a sharp rise but for the stern hand Of
the Bank of England and the British
| treasury authorities, who are determined
| that sterling shall not rise to the point
where British manufacturers will lose
! their advantage in the markets of the
| world.
U. S. Bonds Higher.
Canadian dollars have remained firm
! at about the point where Canada S
! profits on her sterling payments bal
ance her less on payments in American
collars. Cenada's payments in this
market for the next three months are
, unusually light, so that a firm trend in
Canadian dollars may be anticipated
This has already been discounted by a
rise OF to points in Canadian dollar
bonds
United States Government bonds con-
tinued to rise during the week. This
was natural consequence of the de-
mand for liquid investments and the
size Of the amounts of idle funds in
the market. and at the same time
testimony to the markets belief that nc
large Treasury financing is to be ex-
pected for some time to come.
(Copyright. 1882