The Washington times., 1912-08-11

| were not able to do so, but Il 10 fairly
typical OF the industry as whole and
the fact was borne in on Wall Street
In very disagreeable way, in tho
shape Of a large number of annual
statements, during the week, that while
gross earnings are very good, net earn
ings have decreased alarm!ngly and
without very SERIOUS results.
VIII he impossible for general i'm
dustry to expand and give the best re-
suits, II one Of the chief essentials.
t1ranasportatlon, that makes modern in
oustry possible, is crippled; yet that is
what must happen to business II th,,
poncy OF starvation In the matter 81
rauway rates continues. The situation
with their finances is fully as serious
and perhaps more so. for many of the
roais have nothing left, which they
could mortgage, to secure a bond, ever.
II they could sell mortgage bonds. This
is virtually impossible except at ruin
ous rates. In consequence of the great
depreciation OF gilt-edged Investments
the world over and the present unpopu-
larity Of the old-style railway bond.
The temporizing policy OF numerous
ROADS ~ selling short term notes has
also been unfortunate for some of
them. who could have sold bonds two
years ago, but who cannot sell ther1
now, for the mass of unsecured obliga-
tions outstanding, restricts their credit
come almost as unstable as bonds
ana are now depreciating in price.
Bonds and the Money Market.
No Improvement, whatever, was not
ed In the market for. established
bonds during the week., while short
term notes weakened perceptibly. Such
Investment demand as exists, in all for
very high Interest bearing securities:
for new7 per cent industrdial preferred
stocks, and the newer public utility
bonds, which return from 5N TO 5h per
cent The tendencies in recent financ-
ing, with floods of water In the new in
dustrial concerns and an equal deluye
In the Issues of new public utility hold
ing compa nies, are sending shivers up
and down the spines of conservative
bankers Many of them view with
alarm the lowering Of investment
standards by issuing houses and thu.
great risks that investors are taking
with urssasoned issues, As reault
some shrewd bankers are declining 10
participate in any more underwriting
syndicates for new issues fearing that
II anything unfavorable should deyeloo.
tney would be locked up with unstable
issues for years.
There was a distinctly easier ten
dency In the money market of the week
both abroad and at home, and II APP
pears evident that as result Of the
recent furry in rates Wall Street has
supplied Its urgent needs. The opin-
lon In banking circles, however, is prac-
tically unanimous that an active de-
mand for funds will develop within the
next thirty days and continue well into
the fall. influencing generally higher
rates. This belief is. of course. predicat-
ed upon the expected demands for crop
ciai borrowers. Today's bank statement
was favorable. showing moderate cash
gains and an increase in the surplus
reserve, both in the statement built on
averages and that reporting actual con-
ditions. Loans and deposits decreased
In the average and increased in the re-
port OF actual conditions. but the
changes were inconsiderable in both
cases.