The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-18


cumbersome and a menace International
exchange brokers are watching the produc-
ton of gold with the closest attention, and
although not free from apprehension for the
turbances in the financial world on account
OF the gold imitation for many years to come.
These international exchange bankers and
brokers rarely agree as TO the amount OF
the international balance one way or the
other between the United States and the old
world. Each has his own method of COM
putation, and the conclusions arrived at are
not infrequently wide apart. One OF the
best informed Of his class said to me the
other day that as near as he could figure
out, this country was called upon to pro-
vide an average monthly balance to Europe
OF approximately S20,000,000 In making this
estimate he went on the assumption that
the official reports of imports and exports
were nearly correct, although in point or
fact there is notorious differentiation in the
item of imports. Among the items he enum-
Grated as going to make up this S2O,UO.OUO
monthly invisible total was the stereotyped
one of S5.o00,000 to s6.0o0,000 paid by Ameri-
can tourists, the interest on S25,0O0oOO to
S3O,COO.O00 government bonds, the interest
and dividends on S4OO,OO0,OOO TO s5oo.OoOoO0
foreign capital invested in American rail-
road stocks and bonds, the large amounts
paid to foreign partners In American mer-
and lastly the money sent by foreign-born
residents of America to their poor relations
abroad. Ii these figures are any where near
correct, and strong proof in support OF their
accuracy was offered, 1T will be seen that
the trade balance in favor of the United
States must run about $240,0O0.OOO year IN
our favor before we can break even with
the old world.
The annual reports OF railroads which
are coming forward in a flood now tell the
same story of great expenditures for bet
terments, maintenance and equipment. For
time the bears endeavored to make capital
out of these exhibits, but their claims in
this respect are losing force as the public
takes time to analyze and consider the facts
There is growing disposition to apply TO
railroads the same rule that applied to
growing mercantile or industrial businesses.
With these latter it is usually not consid-
cred an unfavorable sign for owners to en-
large their establishments in order to ac-
commodate a growing trade. Why, then,
investors ask, should facilities in order to
handle growing volume of traffic? One
feature of most reports which is occasion
ing remark is the fact that large share
of the money expended during the last few
years in railroad betterments is made from
current earnings. The amounts raised by
increases in bonded Indebtedness have not
Kept pace with the actual expenditures.
Most of the money raised by the sale of
bonds has gone into extension Of mileage,
the outlay on existing properties having
been made, as before stated, from current
revenues When the money market becomes
easier it will doubt be the policy of
the managers to convert these expenses or
a good share of them into capital account,
as has always been done. Railroads are
| still finding use for considerable sums in
carrying out plans already so far advanced
when the rich mans panic overwhelmed
| Wall street that they could not be aban-
doned but this demand is no longer urgent.
/ saw an estimate the other day that the
| railroads were carrying floating indebted
ness of approximately $50 600, 900, which will
| inevitably in due time be funded in the form
| of bonds. The entire bond issue of railroads
| in the next twenty-four months may ag-
gregate high as sioO,0OO,000. Some esti-
mates make the amount even higher. Much
| of this aggregate will be for refunding
| purposes and for the substitution of low
| priced bonds for maturing high-priced is
| sues. w. q. NICHOLAS.