Evening star., 1933-08-11
BONDS IRREGULAR
AT ACTIVE CLOSE.
Domestic Issues Form Bulk
Of Transactions After
Mixed Opening.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, August IL. - Bonds
moved slowly most of the time today,
though the irregularity that marked
price trends at the opening was re-
placed by a steadier tone as trading
progressed. The market developed ac-
tivity just near the close, which was
active.
Domestic issues, such as speculative
rails and industrials formed the bulk OF
transactions. United States Govern
ments pointed higher on moderate deal
ings. Although Cuban loans continued
heavy, the South American list was
frm. Slight recessions in the German
issues and steadiness in French and
British securities featured the European
division.
Listing Of the new Treasury bonds OH
the Stock Exchange Thursday brought
considerable inquiry about the short
term notes. The Treasury never re-
quests the listing of its numerous issues
of notes, certificates of Indebtedness and
discount bills, none of which may have
q maturity Of more than five years. The
market for these always Is made over
the counter.
Tax Features Misunderstood.
There seems to be considerable misun-
derstanding, at least among financial
editors, about the tax features of the
new Treasury bonds. Some editors
make much of the fact that the present
issue is not free of surtaxes, but an ex-
animation of any security manual will
reveal that this provision is contained
in virtually every Treasury bond floated
since 1922. Some of the Treasury notes.
however, are exempt from surtaxes.
While the bonds of Cuban railroads
and sugar producers were moving down.
ward with the government obligations
Vt that country, the securities of Amer
ican sugar growers advanced. American
Beet Sugar IS, for instance, opened up
B points at IS.
Western Pacific first IS. interest on
which Is due September /, opened at
47A. off IL points. The Reconstruc-
ton Finance Corporation on March
advanced the company 81 ,293.4 .439 to
meet interest on this issue and on its
51z per cent equipment trusts. Analysis
today, however, pointed out that the
road had not earned fixed charges in
any year since 1929. In July, for the
fourth successive month, it recorded a
gain over the preceding month by
showing net operating income of 1891.
Speculative Rails Rise.
Speculative rails generally moved
ahead. Chesapeake Corporation SIS
hardened with their shares. st. Paul
adjustments did better. though the gold
SIS inclined to softness, Rock Island,
Northwestern and Illinois Central issues
improved, though the Van Sweringen
group such as Allegheny Corporation
SIS, Missouri Pacific SIS and the various
nickel plate issues, moved unevenly,
with slight losses predominant.
American Smelling SIS. among the
better grade fndustrials, receded. Beth
lehem Steel IS, however, stiffened.
Goodyear Tire SIS recovered their ini-
tial decline. Standard Oil of New Jer-
sey SIS were unchanged. In the gilt
edged rails, Lake Shore 31ks were with
out change at IS. Union Pacific first
Is quickly erased their earlier recess
sion
The relative dullness of Cuban gov
ernment loans Is due to the fact that
relatively few of these securities are
held by the public. Many have been
repurchased by banks Insurance COM
panies also have large holdings, for
Cuban laws so insist in the case OF
concerns that would do business On
that island.
Austrian rs of 1s43. the loan guar
anteed by the League of Nations, sold
at 95, up a half point, though the Is
of 1858, which are backed only by
Austrian credit, remained around ST.
Wider moving industrials included Bot
any Mills SIS, Gould Coupler IS, Nc
Crory 51as and Vanadium IS. Pere
Marquette IS of 1856 rose "a points
to a new peak of rs as a result of the
roads cancellation of its request for a
$4,000 900 loan from the Reconstruc-
ton Finance Cooperation.
(Copyripht. 1q33)