Evening star., 1949-12-04
Bond Market Steady,
With Selected Rails
Staging New Rally
By n. c. Johnson
Assoeioted Press Finunciat Writer

NEW YORK, Dec. 3.-The bono
market closed out the most active
week of l949 today with new
rally in selected rails that i'm.
parted a generally steady under.
tone to the entire corporate list
Advances of fractions to around
a point were sprinkled through
the rail group at intervals and
occasionally extended to an in
dustrial or utility bond. There
were, of course. a number OF
losers in all groups but the de-
clines were small.
Holding plus marks of a poin,
OF better at the close of the two
hour period were the stamped
bonds of the Buffalo, Rochester
& Pittsburgh Railroad, Hooking
Valley 4l2s, Illinois Central As
Lehigh Valley SIS and 4l2s, Sea-
board Air Line income 41as and
Texas & New Orleans 3Hs. There
were numerous others improving
mlQQle 10 Top IrdCLlOnS.
MOP Issues Active.
Missouri Pacific convertible
512s were among the few issues
boasting heavy volume. The days
trade in that bond totaled $121,-
600, par value and it ended up
"a point at 30ls., Other MOP
bonds did not distinguish them
selves one way or another.
On the losing end were Big -Four
4l2s, Rio Grande Western 4l2s
Lorillard Co. IS. National Supply
2a4s and Northern Pacific 4l2s.
Sales today totaled $1,640 ,00C
compared with $870,000 last Sat-
urday. The volume brought the
weeks total to $22.992 900, the
biggest Of the year. The previous
largest week was $22.930.000 in
the week ended July %. At that
time trading in one American
Telephone bond accounted foi
$11,810.000 Of the weeks turnover
Brazilian loans were higher ir
an otherwise routine-performine
foreign dollar list.
There was no business in United
States Governments today, but the
rise and fall of long-term United
States Treasury obligations and
the rally in rail liens provided all
the excitement in the bond market
earlier this week.
Subjected to pressure from
every conceivable angle. long
term Treasures managed to hold
steady Monday, lost ground Tues
day. advanced strongly Wednesday
and Thursday and sank again
Friday.
Up Slightly for Week.
After these fluctuations, the
over-the-counter market closed
the week Friday with a small net
advance.
When the market in Govern
ment issues was strongest on
Thursday. buyers were influenced
by the Treasury's reaffirmation of
an easy money" low-interest pol
icy on its debt.
The Treasury announced an Of
fering of Ia per cent certificate
in exchange for $5,694, 500, 900 of
~ per cent certificates that be-
come due January l.
The issuance Of a certificate at
a lower rate served notice (and
Secretary of the Treasury Snyder
confirmed it in a statement FRI
day. that the Government would
stick to low-interest levels in its
near-future refundings. y
Investors who had hoped the
Government soon would start on
a program of higher rate refund
ings saw the handwriting on the
Treasury wall. They jumped i'm
into the bidding for the
longer-term bonds, which have q
higher yield.
The sag Friday, which ranged
from 1882 to 4f32 of a point, lop-
ping off about half of Thursdays
gain, was attributed to light profit
selling plus the usual slump in
demand on the final trading ses-
sion of the week.