Show MADE ON BOND ACTION u. u S. S Holders Irked by Suspension Sus- Sus 1 pension of Interest on L Colombia Dollar r By CHARLES HUGHES Copyright 1934 for The Telegram r lS NEW YORK April 19 AmerIcan holders holders' of the dollar bonds 0 of Colombia Colombin Colom- Colom bin bia are arc protesting vigorously the suspension of cash payments on Interest account which the g vern- vern ment f the republic out that Colombia has I n a favor favorable bl trade balance that coffee coce its chief export has advanced 30 to 40 per cent in price and th that t the United States is its principal custo- custo mer Th Thy y add that last y ar Cobra Colom bias blas gold production alon was more than sufficient to meet all interest interest in- in terest requirements on the foreIgn debt There doesn't seem to be any remedy for the bondholders and about all they can do is to go on complain complain- ing VS V V Do bU bUess the war near wIth Peru has bas something to do with the reluctance tance of Colombia to divert an its resources resources resources' to the payment ot of obligations obliga- obliga which represent loans that have been used up especially in view of the certainty that no ICV be expected expect d here It wo woUld ld not do any good to suspend sus sus- suspend pend trading in these bonds on which interest is not being paid or In other defaulted bonds of South American republIcs for r white while that would pre vent the debt frs from buying up their own obligations at a heavy discount it would deprive American holders of the opportunity to salvage sal something from their investments Any o of these bonds can be sold at some price pric which would not be the case if they were removed removed re- re moved from trading In another quarter the political troubles in South America have inflicted in in- heavy loss on foreign interests The shareholders ot of Patino Mines were told at the annual meeting that the business of the company would be very satisfactory were it not for forthe fori the war between B Uvia livia where the company's and Paraguay It was added at the Patino meeting that Bolivia required all tin mines to convert at least 46 per cent of the market mar mar- ket price of their output into pounds sterling and to deposit in the Central Dank Bank of Bolivia sterling drafts fot fOl which the company receives credit in Again this is a risk which the investor In a l foreign enterprise alwa always s' s hs hns' to assume Ev ri once in iii i while speculation shows up in one or the other of these South American defaulted bonds It never gets very far because there is isso isso so little good basis for it In every case it brIngs out the contrast presented pre pre- rented by Argentina which has faithfully faith faith- fuU fully observed its engagements to its creditors |