The Washington times., 1911-04-30

, the past. and they associate temporary
| financing with periods Of market dis.
turbance and monetary trouble. In fact
| no one can recall a similar period where
| with six months money quoted at 2%
| to 3 per cent and every one predicting
long period of dirt cheap money, cor
poration after corporation comes for
ward with note issue which when
commission and all else is counted in
appears to cost the borrowing compan-
les nearly twice the going rate Of time
| money.
Short Term Notes.
Quite naturally, in consequence Of the
very easy money market, and the high
interest yield obtained from the notes
the latter sell like hot cakes, but they
are regarded as a banking rather than
an investment proposition. Attention
is directed to the fact that corporations
have been meeting one note with pro-
ceeds Of another recently, and that, In
many instances. they have not been
able to fund their last temporary bor-
rowings, or finance In a permanent form,
before engaging in a new temporary
borrowing. 1t Is also noted that short
term notes are now resorted to for pur-
poses entirely different than III the
past, for improvements. for reimbur-
sing treasury for money borrowed,
and even to buy something as the AM
algamated Copper Company bought the
United Metals Selling Company.
The crowning achievement in this mat
ter, however. Is the report that the pro-
ceeds Of the $50 000. 900 note issue of the
northwestern Elevated System Of Chi
caso are to be used to retire Sl8,00O. 900
ponds maturing in September, and also
stock. step preliminary, according to
rumor, Of merger of the Chicago ele-
waited roads. OF course a company re-
sorting to temporary borrowing Is
placed at disadvantage when it comes
to permanent financing, for II cannot
select the time for its bond sales, and 1t
knows nothing of what conditions will
be when its temporary obligation ma
lures. And when 1t has TO pay double
commissions, one for the original loan
ana one for the temporary renewal, or
Ior financing in permanent form.
Earnings of the Steel Trust.
Although the earnings OF the United
States Steel Corporation for the March
quarter. amounting to s23.5l9,2n3, were
nearly 100000 under the current Wall
Street estimate. and were not sufficient
to pay the dividend on the common
stock except by dispensing entirely with
the usual appropriations for improve
iiicilI' Inc nIdHCldI Inafhet OlO not take
a bearish view of the result. and clearly
so because of the remarkable improve
ment in earnings on a progressive scale
from the very bad showing for January
to the favorable figures for March, net
earnings rising from $3.50, 900 In January
to $7.lso,9S in February, and so, ,4sS, ,s55
in March.
II is not to BE- expected that this pro-
gression Will continue. for the reports
by the leading iron and steel authority
are TO the effect that the percentage of
active furnaces of the corporation has
declined from seventy to sIxty-seven
per cent. and finishing mills In most
lines. are operating on reduced sched-
ules. Brssemer ore, too. has been re-
duced fifty cents a ton. which is a di-
rect reflection of quiet business. but. de-
spite this. the belief Is general thai
steel earnings touched their low point
in January. The untitled orders stand
ing on the books on March 81 last
amounting to 3,447,ooo tons, were TI2,Oo1
tons. or 30 per cent larger than