Evening star., 1933-04-30
BOND PRICES GAIN
IN SMALL MARKET
DUR|NGPAST WEEK
Ready Sale for New Govern.
ment Issue Is Construc-
tive Factor.
Special Dispatch to The Star.


NEW YORK, April 29.-Although the
volume of trading in the investment
market this week tapered off frcm the
heavy dealings Of the previous week
the price average continued to advance
Even the adoption by the Senate OF q
silver clause in the initiation proposals
did not serve to start new wave OF
selling. Wall Street has reached stage
of optimism that is based On many fac
tors besides the presumably favorable
results achieved at the Washington con,
ferences. Imitation is no longer the
bugaboo that it was at first.
In some measure, OF course. tne
new cheerfulness is to be ATTRIBUTED
to the hope that imitation will thaW
out the enormous bulk OF frozen as
sets in the banks and other institu-
tions of the country. But the markets
continue to find their chief reasons
for advances in favorable railroad
earnings reports, increased car load
ings, higher steel activity and evidence
that there Is better than q seasonal
increase in business. The sharp rise
in commodity prices has also helped
In an index Of 80 active commodities
this advance has now reached % per
cent.
U. 8. Offering Well Taken.
announcement was also derived
from the latest issue Of United States
Government bonds. That the treas
ury could announce a $500,000, 600 is
sue of three-year 27s per cent notes
without causing any embarrassment to
outstanding Treasury descriptions was
evidence that the Government market
had lost some of its fear OF heavy
financing to come. The notes were
well taken by banks because they
were offered at a better yield basis
than outstanding obligations Of similar
maturity. but there was little public
response.
The market IS still satisfied that
some attempt will be made later IN
the year to refund q large portion OF
the Treasury's floating debt with long
term bonds, but with business mprov-
ing the Treasury Is content to wait
until there is a still better bond mar
ket in which it might have a chance
of making a highly successful refund
ing operation.
The market for municipal bonds con-
tinues to drag. New York City's crit
ical condition-it was so serious that
the city this week came close to de-
faulting-is only a reflection Of what
is going on in many cities. Economies,
while drastic, have not gone far enough
and increased taxes have not yielded
what was expected of them. The Re-
construction Finance Corporation has
turned to the problems Of the munich
palities, so that temporary relief may
be expected. But in general the mu-
nicipal market Is looking toward In
flation for substantial aid. In New
York, for instance, imitation would en-
able the city authorities to raise tran
sit fares.
Foreign Group.
Foreign dollar bonds have been more
active and in most instances higher.
Canadian issues, many of which are
payable at the option of the holder in
dollars or sterling, have been bought
by those seeking hedge against In
flation. As the week ended and the
European visitors to Washington sailed
for home with messages Of assurance,
the dollar bonds of the Scandinavian
countries were advanced sharply by
buying, based on the theory that inter-
national stabiliZation Of currencies Is
a foregone conclusion. The currencies
of Denmark, Norway and Sweden are
linked to sterling.
Copyright. 1933)