Evening star., 1933-03-26
BOND LIST MEETS
RENEWED SELLING
DURING PAST WEEK
Market Is Apparently Await
ing Clean Up of Bank
ing Troubles.
Special Dispatch to. The Star.

Special Dispatch to The Star
NEW YORK, March 25-With its
owns markets again quiet and the irreg-
ular movement of prices attracting but
little attention. Wall Street found time
this week to scan the situation in Eu-
rope.
The movement of foreign exchanges
assumed more importance than the
prices of United States Government
bonds. The prices for foreign dollar
bonds received more ccrutiny than the
domestic railroad situation.
The weeks price trend in all divisions
was indeterminate, after the prelimi-
nary reaction which was q natural Sc
quel to the advance of the previous
week. Resumption of the advance Is
in the banking situation and the reveal
ing of the administrators intentions
in regard to the railroads.
Sharp Selling Develops.
The market became intensely inter-
ested in European securities when
Adolf Hitler was invested with the
powers of a dictator in Germany-a
development that was Immediately fol-
lowed by the declaration of an emer-
gency in Poland. At first German dol
lar bonds dropped sharply and there
was considerable amount of selling Of
securities from Berlin. Amsterdam
Geneva and other markets from which
ordinarily come the big German opera
t1ons. This was interpreted not as
nervous liquidation by Europeans fear
full Of depreciation Of the dollar, but
as necessitous selling by wealthy Jews
In Germany who were preparing to flee
to other countries.
This view was confirmed by return
ing American bankers and brokers who
have been in Europe during recent
weeks. They found the general opinion
in England to be that America would
not leave the gold standard, that there
would be no imitation here beyond n
mild and strictly controlled form of 1t,
and that they were only waiting for
the dollar to stabilize in terms of the
franc, guilder, reichsmark and pound
sterling in order to invest in American
securities.
Increased buying of American Sc
curities was confirmed by the abrupt
rise Of the dollar against European
currencies in midweek. One broker
arrived home convinced that little en-
couragement Is needed to start a wave
OF buying Of American securities by
Europeans. Such a development would
be Of immense benefit to the domestic
makets but if it assumed proportions
large enough to menace the position
OF the various European currencies, its
ultimate effect would be to make the
world depression more acute.
European Buying.
There has been good buying of the
better grade German bonds. These
buyers take the attitude that Hitler,
like Mussolini, will incline to conserva-
tism as he assumes and realizes his
responsibilities They do not believe
he will allow Germany to default on
her external Indebtedness.
Europe has been heavy buyer not
only of sound bonds, such as the dollar
debts of Australia and Canada, but
also of the cheap South American dol
lar bonds. Large blocks of the obliga-
ticns of Brazil, Argentina, Colombia
and Peru have been bought on the
theory that in order to develop trade
with the United States, these nations
will try to re-establish their inter-
national credit by buying up their own
bonds with money raised through in
ternal loans and taxes.
(Copyright. 1933)