The news of the falling off in the Customs returns has caused a considerable drop in Domestic Bonds this week, but the expectation of the election being carried out to-day has caused a slight reaction. Brokers, however, prediet that to-day's reaction will be only temporary and. that there will soon be a further fall.
_In connexion with amortization of the bonds, it is understood that many Chinese have been under the impression that the Customs. authorities had a large sum "up their sleeve" for this purpose, which Sir Francis Aglen would produce on his return. This belief is authoritatively stated to be entirely without foundation. On the other hand, it is stated that there is practically no chance of any drawing this year and, unless there is a turn for the better in the Customs returns, there may not be one for a good part of next year as well.
Some foreigners who have been good purchasers of bonds this year are now selling under the apprehension that, if the Customs returns continue to decrease, even the interest may not be forthcoming at the right time.
On the other hand, the announcement that a sum is being set aside for amortization of the 1913 Reorganization Loan is thought likely to cause a usa in these bonds before larg, perhaps at the expense of a further drop in Domestic Bonds.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.