Evening star., 1949-11-27
Bond Market Shows
Firmef Tendency al
End Of Quiet Day
By the Associofed Press

NEW YORK, Nov. 26. ~ The
bond market tended to firm in
the final few minutes of trading
today after loafing through the
greater part of the short session
At the end there were scattered
plus signs Of major fractions to
a point among trading favorites
and a number of higher priced
bonds were up fractions. All major
groups had sizable quotas of los
ers, especially rails.
Florida East Coast IS were up q
points at SO, Lehigh Valley 4las
posted a plus sign Of Ia points
at So, Katy adjustment 5s ad-
vanced "a to 69A and the roads
were up a point at 65.
On the losing end were Third
Avenue Adjustment IS, American
& Foreign Power IS. Baltimore d
Ohio convertible 41as, st. Paul
income 4i2s and Lackawanna As
Sales OF $870,000 compared with
$3.50, 900 last Saturday.
Federal Bonds Down.
The speed-up in the decline OF
long term United States Treasury
bonds overshadowed the trifling
accomplishments Of the corporate
bond market this week.
The decline in the longer gov
ernment maturities began Nov
ember 18 and proceeded in orderly
fashion for three sessions, with
few losses in the period exceeding
the minimum 1872 of a point.
Wednesday, however, the break
was sharper and losses ranged
down to 6/32 of a point. The in
tervention of the Thanksgiving
holiday did not Change the trend
and some issues were of as much
as 1882 Friday. Late in Fridays
session, however. losses were
whitfield down a bit and no issue
closed off more than 4/32 of a
point in over-the-c counter trading.
There is no Saturday trading.
The accelerated slide Wednes-
day and Friday was due to state
ments given Tuseday by banking
officials before a House-Senate
subcommittee on economics.
Edward E. Brown, Chicago
banker and member Of the Fed
eral Reserve Systems open mar
ket advisory committee, and Mar
riner S. Eccles, member OF the
Federal Reserve Board. appeared
to argue the reserve system should
dispose of some of it's treasury
bond holdings in the open market.
This action would lower the going
prices Of the bonds and thereby
effect higher interest yield. In
vestors long have complained
OF the low yield on governments.
Average Off Slightly.
The Associated Press average OF
20 rails finished the week at Ola.
off i Of a point for the five days
work. The industrials. utilities,
and foreign bond averages were
unchanged for the week and the
group Of 10 low-yield bonds ended
off 2 at Ills.
Topping the corporate >financ-
ing schedule next week will be
Louisville Gas g. Electric Com
pany's offering of al ,000, 900 Of
first mortgage bonds Tuesday.
Proceeds will be used to redeem
about $4,000, 900 Of outstanding
debt.
The only other major bond flo
tation of the week will be $10,-
100000 Of first mortgage bonds
by Gulf States Utilities Co., also
Tuesday. On the same day, South
ern Co. will receive bids on l.500,-
600 additional shares Of common
stock.
1t will be a relatively light week
in financing by states. counties
and municipalities. Daily Bond
Buyer lists the total Of next weeks
tax exempt offerings at $5o, o,904, =
900. compared with 500, ,l21 900
this week. Among the major is
sues will be $7,000,0o of bonds OF
the Washington suburban sani-
tary district, Nd, on Thursday.