Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-07-10
STRENGTH SHOWN
IN FOREIGN LOANS
Softness of Domestic Rail
and Industrial Issues
Bring Contrast.
BY JOHN A. CRONE.


NEW YORK, July l0.-Strength of
foreign government loans and softness
of numerous domestic rail and indus
trial issues provided sharp contrasts in
bond trading today.
French Is and 7l2s at once were bid
up to new highs for the year. They
were followed quickly by United King
dom of Great Britain Is Of 1890. These
sharply advanced against the dollar
here Japanese securities. under the
leadership of Toho Electric Power rs.
then were bid up, with japanese gov
eminent l2s up a point to new top
for the year. Batavian Petroleum 4 IS
and a few other foreign industrlals were
marked up to new heights.
Open Up Points.
Bordeaux IS opened up 4 points at
1875. a new peak. followed by some fur
ther easing in Belgian and Italian gov
eminent obligations and narrow price
ranges for German loans If the bid
ding up of foreign governments. as some
dealers said, represented flight from the
falling dollar. the reverse explanation
hardly could be put forward for the
strength and activity of United States
Government Obligations in the forenoon.
There has been some switching from
shares and other securities on the part
of foreigners into external bonds OF
their respective governments.
Early profit taking in speculative do
nestle securities may have resulted
from the recent hardening Of money
rates, from the technical position OF
such bonds or from individual corporate
developments. Some commentators re-
Gently pointed out that important In
terests up to a few weeks ago centered
all of their speculative activities In low
grade bondS-a not unnatural move in
view of the movements of shares for
the last two years-but now were
switching some of their holdings into
equities.
Discount Developments.
Certainly the advance Of numerous
rails and industrials. even concedlng
the rise in traffic and sales. has lar
discounted developments to the end OF
this year On the other hand. indus
trials that moved upward around mid
day, sometimes even in the face OF
unfavorable corporate developments,
had been rather sluggish in recent SEES
sions. roWn-Williamette Paper 6s
opened at a new high. for example,
though the annual earning statement
showed a net loss of S37,6l3 against
net profit of S2.233 1926 in the year
ended April 30. 1882.
Allis Chalmers IS of 1887, Goodrich
Convertible 6s Parmelee Convertible IS,
to cite a cross-section rather than a
group of one grade, rose to new highs
for the year Old Ben Coal first IS of
1914 opened at 1912. off Az points,
as President Buchanan said that it
was not expected August l interest
would be paid. He proposed a re-
adjustment of capitalization, declaring
finances compelled relief from present
fixed charges.
New Highs.
Gulf States Steel SIPS and Hudson
Coal first SIS attained new heights as
Texas Co. SIS duplicated their previous
peak and United States Rubber IS came
within a fraction of their best level of
the year
Previous to these moves numerous
carriers, ranging from the lowest grace
through to those just slightly below the
very best grade, yielded a point or more.
This list included International Great
Northern adjustments. the Allegheny
Corporation issues and Nickel Plate
bonds. Before the rise in utility shares
most of the speculative power and light
operating and holding company bonds
were inclined to lower Levers.