Arizona republican., 1910-04-25
EDGE SECURITIES
 The fIuctuation in Values in Various Countries .0F THEIR NATIONAL BONDS.
An Interesting Chart Pre- pared By National None tary Commission Showing How Prices of Bonds of Countries Have Varied

! Washington. April 24.--One of the
 subjects treated in the portfolio oi charts prepared by Dr. A. Piatt An drew, and just given out by the Nat | ional Monetary commission is the va | riations in the value of the govern
 ment bonds of the United States and three other important commercial DOW
 ers-Great Britain. France and Ger
 many. The ascending and descending lines of the charts reveal in a graphic way the fluctuations to which these gilt edged securities have been sub
 jected through variations in the de-
 mand for capital and disturbances in
 the money market The diagram of average net prices seems to indicate that the market for European govern
 ment bonds was subject to different
 fluctuations in some cases from those felt in the market in America
 The United States per cents touch ed their maximum average price of about 12S in 1889. This was also the period of the maximum annual aver age of German imperial 5s.. which were above 10S. British consols. then paying per cent, were near their maximum in 1897. but French 3 per cents were then below 80 and were only beginning their upward course which culminated in 1897 at IO3. The United States As fell between 1889 and 1893 below 10S. partly as the result of approaching maturity and partly because of the panic of that year. The year 1896 was the year of the continuation of the prices of Ger man and 3i. per cents. the former going close to 105 and the latter to near par. English consols also touch ed their high point, above II2. in 1887, and then began the downward plunge. which. in 1901. left them be- low 95 and carried them in 1907 be- low S5, after their reduction lin 1903 to 2S per cent basis. The pressure upon the money markets caused by the Boer war and other influerares af- fected all European issues in 1900 They enjoyed considerable recovery during the next few years. but suf- fered again in the panic of 1907. The United States per cent bonds ad- vanced to nearly 1O9 in 1952, but then began the downward course. which has carried them, with the s's. nearly to par, ae
 The influence of these changes is brought out, perhaps, more clearly by a table in which the issues of the four dealt with are reduced to q 2 per cent basis. In this table, in spite of wide variations due to par ticular causes. there is general movement upward from 1884 to 1889, which persisted in the case of Euro pean issues until 1897. In the United States there was q marked decline in values in 1869, which woulsi have
  put the per cent bonds belpw par upon. a 3 per cent basis. Between 1897 and 1900 German and British loans declined slightly. while Ameri- can issues recovered. Then set in. about 1902, the decline in all securi- ties quoted. at the time of the large demands for capital arising from issues of railway and in- dustrial securities. eliminating in the of 1907.
 A chart showing the real interest earned upon government issues shows more variations in the case of the United States than in that of Great Britain, France. or Germany The net interest rate upon German i'm perial securities. while showing less variation than in the case of France that of either of these countries. standing for the As in 1907 above 3% per ecent French rentes, which 1 h 1884 earned nearly 4 per cent. de clined in earning power as their price rose. until their net return was be- low per cent in 1897. but with the ! fall in price in 1907 showed an in ! crease in earning power to about 3.25. English consols, which in 1897. at the