Ke Alakai o Hawaii, Volume IX, Number 21, 3 September 1936 — U. S. BONDS RISE AS REPUBLICANS FEAR BANKRUPTCY Federal Issues Hit New High Leveis As Knox Howis [ARTICLE]

U. S. BONDS RISE AS REPUBLICANS FEAR BANKRUPTCY

Federal Issues Hit New High Levels As Knox Howls

"We must reestablish responsibility in the hand of government finances," said Gov. Alf M. Landon in accepting the Republican nomination after declaring that appearances indicated to him out at Topeka that Government securities were indeed being endangered. He expressed concern about it and Col. Frank Knox bluntly averred that the country may expect "bankruptcy." The feature of the securities markets in late July and through the third week of August was the continued buoyancy of U. S. bonds. On Aug. 8 the Wall Street Journal called attention to the fact that since the beginning of the year all Federal government issues had continued to firm up." Repeatedly since

Jan. 1 they have reached new "highs." "Trading in bonds expanded yesterday, with special activity in U. S. Government securities," reports the New York Times of Aug. 12 and continues: "Three Treasury issues reached new high prices since their dates of "issue." These included 3 3/8s of 1934-47 at 108 23-32; 3 1/8s of 1946-49 at 106 16-32; HOLC 3s at 103 3-32. On the following day the Times reported: "There was no let up yesterday in the demand for U. S. Government obilgations. Continued buying carried seven of them to new all-time records. Net gains from one to 3-32 point ruled among the Treasury bonds at the close. The 2 7/8s of 1955-60 were the most active and advanced quickly to a new peak." Occasionally, by way of comparison, the financial writers recall that the most popular bond issue during the Mellon-Hoover era of fiscal responsibility which Gov. Landen is anxious shall be "reestablished" was quoted on the New York Stock Exchange in September, 1932, at 83, with no takers.