Evening star., 1933-07-31
OFFERINGS FORCE
!. BOND LIST LOWER
Prices Steady in Afternoon
r at Around or Just
Above Lows.
BY JOHN A. CRONE.

Special Dispatch to The Star
NEW YORK, July Slater OPEN
ing moderately active and firm, today'S s
bond session encountered series OF
offerings which caused virtually all
speculative descriptions and many high
grade issues to turn irregularly lower
United States Governments were re-
dictionary.
A sharp recovery in Argentine gov
ernmentS, followed later by betterment
in city and provincial issues and wide
ranges in European loans, marked for
eign dealings in the forenoon. A rally
of 2 to 6 points in Argentine govern
ments In London was the signal for a
buying movement here. following the
average break of 10 points in this group
last week
Argentine Loans Up.
Recovery in Argentine loans today
followed Buenos Aires cables to local
bankers that foreign trade balances in
June and in the first half of the year
were favorable. Many OF these govern
ment issues, however, are down ~
points or more from their highs earlier
in the year. Wheat prices and politics
are blamed for this condition. Finance
Minister Hueyo, who resigned recently,
was noted for his conservatism and his
attempts to cut down foreign debts.
His successor however, has given IN
dications that he may suspend sinking
fund payments. President Justo IN
sists interest payments will BE- con-
tinued. Chilean loans were not much
changed despite Santiago cables stating
that external revaluation OF the peso
has affected business unfavorably. Uru-
gEay IS opened off a point following
the announcement that August ] in
terest on the 8 per cent issue would be
paid in blocked pesos, which Will be
paid in Montevideo and transferred to
holders at the rate of exchange prevail
ing at the time of the transfer.
The advance in foreign currencies In
terms of the dollar at once was re-
flected in United Kingdom 512s, French
Is and 71bs, Polish Is and some Of the
Belgian issues Prussia 6l2s were lower,
as that state told holders it was trying
to get permission to transmit funds to
make full dollar payments on Septem-
ber IS, having been forbidden to pay
more than half of the interest due in
dollars by the Reiche decree of June g.
Canadian Issues Firm.
All types of Canadian issues corpo-
rate as well as government, were strong
on the announcement that the Domin-
ion has been borrowing less abroad and
would float els 100000 of 4 per cent
bends, due between 1858 and 1858, in
London soon. This is the first such
fiotation in London since 1915, re-
emphasizing the fact that Canada has
linked her fortunes with the pound
rather than the dollar Australian
issues hardened on the announcement
of the premium commanded by the new
in
Western railroads. especially those
carrying grain, were the first to sell
lower today, perhaps rejecting the
slump in grain traffic last week. Chi
cago. Milwaukee. ST. Paul & Pacific ad-
justments and the gold 5s led the de-
scent, followed by Rock Island. Great
Western, Chicago & Northwestern and
other grain carriers.
Industrial debentures met a some
what narrower market. as was illus
trated by the movement in such issues
as Goodyear Tire & Rubber 5s. United
States Rubber SIS. Colorado Industrial
5s, National Dairy Products 5 5l4s, Hud-
sor Coal IS and Philadelphia & Read
ing Coal & Iron IS.
Meanwhile the high-grade indus
trials, like Bethlehem Steel IS of 1886,
American Smelling g. Refining IS and
Cord Products Refining SIS ranged from
steady to firm. Although Atchison
general As were fractionally higher.
some of the gilt-edged rails, like Lake
Shore 3l2s, were easier.
Steadies in Afternoon.
The market steadied in the afternoon
around or just above the lows of the
session. Volume was small Brooklyn
Manhattan Transit IS were well sup
ported. Molorado Industrial SIS were
weak
Attempts to bring into price line out
standing issues of United States Gov
ernment obligations, especially the long
terms, with the new financing produced
a quiet and reactionary tone in this
division.
The Street generally believed that
the two new issues were priced about
right, that the 3l4s probably would go
to a premium of 101 and the l 5ss to
premium of 100l4 before the subscrip-
ton books closed and that allotments
probably would bring total financing to
around 81 100000 rather than the
$3.50, 900 announced, most of the
additional bonds being in the form of
the two-year 15s per cent notes.
AS dealers and traders sought the
new issues, proceeds of which will be
used to pay off August Is maturities
and provide funds for the public works
program, bids for the longer term Liber-
ties and Treasures were light, but any
slack here is expected to be taken up
in the next few days by Federal Re-