Business: Bond Break

Much uneasiness was caused last week by the continued decline in the bond market. Second-grade bonds have dropped in alarming fashion; the best bonds have slumped at an angle almost unprecedented. One reason given is the need of many an institution to have much cash on hand. Another is that new bond financing for eleven months this year was $5,300,000,000 against $3,671,000,000 all last year, that bond digestion is clogged. Said the venerable, owl-wise Commercial & Financial Chronicle last week: “It is bad enough to see stock prices going all tx> smash, but when bond prices follow the same destructive course, there is reason for the gravest apprehension.”