Evening star., 1949-02-13
Bond Market Quiet;
Some Gains Recorded
But Losses Rule
By the Assoeioied Press

NEW YORK, Feb. 1.-THE
bond market showed improvement
in spots this week, but not enough
to boost 1t out Of three-week
slump.
The decline set in January "a
and the prices Of corporate obli-
cations have persistently drifted
lower ever since.
Prices generally were down
Monday and Tuesday. The mar
ket got an even break Wednesday,
but sinking spell occurred in
late trading Thursday and con-
tinued through Friday.
What trading was done was in
duced chiefly by selling pressure.
There was no buying enthusiasm
at any time in the week and busi-
ness for the five-day period hit
the exceedingly meager total OF
S16.377. Goa figure that would
have constituted a good days
trade a few years ago. Last
weeks turnover was $l7,671,750.
Utility issues put on a good
show for the week and a majority
improved their prices. High-grade
rails were fairly steady, but the
more numerous speculatives sag
ged. 1ndustrials generally were
unchanged.
Federal Issues Strong.
United States Government
bonds continued strong during the
week. The partially tax-exempt
issues took a buffeting Wednes-
day following reports that some
congressional leaders wish to post
pone action on proposed tax raises.
They came back smartly on
Thursday, however, when all long
term Treasures made moderately
substantial advances. This gain
was interpreted by some Wall
Streeters as the result Of Secre-
tary Snyder's statement that the
Treasury will retain its ~ per
cent interest rate on one-year GER
tif1cates.
This decision, although antici-
pated, was held to have driven
some money out of the short term
market and into the better-yield-
ing long-term bonds.
The marketing OF municipal OBJ
legations was slow all week and
unsold issues still on dealers
shelves totaled nearly s1O5,oOO,-
900.
The tax-exempt municipals
stood up well, however, under
news of the. apparent slackening
of the drive for early enactment
of higher taxes. These lower in
terest bonds had been expected
to attract buyer interest If new
taxes were imminent and to react
adversely if such taxes were STAYED
off. even temporarily.
Offerings to Increase
Local governments will offer
about $65.000.000 in new bond
issues next week, nearly $40, ,000,-
600 more than was marketed. this
week. The largest offering will be
SIS 100000 by the City Of New
Orleans in Union Passenger Ter
minal revenue bonds. This offer
it1g is scheduled for Tuesday.
Columbia Gas System, Inc, a
New York holding company, asked
the Securities and Exchange Com
mission this week for permission
to sell $2O,000,OO0 in new deben-
lures at competitive bidding. Pro-
ceeds will be used for construction
and expansion.
The Brazilian government hand
ed over nearly $20.0O0,00O to fiscal
agents in New York and London
Friday to redeem on April l the
Sac Paulo State 7 per cent coffee
realization bonds and the Brazilian
3s4 per cent external dollar bonds
(series g. of 1914. This news
caused sharp rise in the price OF
most Brazilian issues on the New
York exchange.
One Brazilian official said his
government is studying the pos
sibility Of liquidating other issues.
Brazilian bonds have been strong
in recent weeks and Fridays &C
ton, Wall Street circles said, prob
ably would add impetus to the
upward trend.