The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-10-01
Fresh Demands for Capital.

The decline in the price of British
consols, and the high rates paid by
New York city for money, are two
among many symptoms of the de-
mand for new capital. One of the
best evidences of it's magnitude is
afforded by the statistics, just made
public by the British board of trade
of the organization of stock compa-
MES in Great Britain during the past
twenty years. 1t appears that the
number of going companies, after
throwing out those which have dis
appeared as the result of incompe-
tent or dishonest management, in
creased from 10,494 in 1887 to 3D.
1928 in 1897, and 43,03S in 1907 The
increase in numbers, however is less
significant than the increase in
amount of paid-up capital. This
stood at sol, 50S,692 pounds in 1887,
1,2S5, 042,021 pounds in 1897, and
2,061, 010,5S6 pounds in 1907.
It would misleading to interpret
this reGarka 10 increase as an accu-
rate measure Of the growth of in
dustry. While such growth is
factor in the increase in corporation
capital the larger part undoubtedly
represents the conversion of private
partnerships into joint stock compa-
MES. British industrial enterprises,
therefore, have appeared in the
money market during the past twen-
ty years with an average annual APP
peal for about 100000 pounds of
new capital, the actual needs being
probably larger in the last few years
than in some of the earlier years. 1t
is not surprising that with this de-
mand for company capital encounter
ing demands from the government
for about $S00,000,000 in new con-
soils and similar securities since 1898,
there was sharp bidding for the sup
ply in the market. Consols suffered
in price, and rates for money rose.
This acute demand for capital has
not been limited to Great Britain.
The computation which is made an
nually by LIE Moniteur des Interest
Materials of the output of new secur-
tiles throughout the world placed the
amount of such issues in 1906, out
side the United States, at $4,500,-
90, 900, subject to reduction by re-
funding and conversion operations to
about $2,5OO,0OO,000. If to this is
added about 81, 100000, 900 for the
United States. the net new issues of
1906 stood at about SO, 500, 900, 600.
These figures in themselves are a
sufficient explanation of the scarcity
of. capital at the present time, and
the difficulty of floating new enter
prises. Other influences may have
accentuated the disturbance in the
stock markets, especially in our own;
but even very favorable political con-
ditions would be incapable of calling
out capital adequate for meeting the
great demands of recent times.
That British consols have fallen
sharply within the past ten years,
until they have reached the level of
1S4S, is explained in part by the
competition of other securities in the
market which was formerly reserved
almost exclusively for them. Per-
Missile trust investments have been
extended in Great Britain to colonial,
municipal and other stocks which
| seem to afford adequate security and
pay higher returns. The bonds of
the United States would probably
have suffered in a similar manner If
| their exclusive market as security
| for bank circulation had been i'm
paired So large has been the issue
of new banking capital, however, with
the accompaniment of the issue of
| circulating notes, that considerable
amounts of United States bonds
could still probably be f1oated with
out sending down their price sharply.
New York Times.