New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-28
REVIEW AND DIGEST
The Investment Situation, Cur
rency Reform, Foreign Bank
ing Position and Stock
Market Factors.

Market Factors.
During the summer of 1912 there
were signs which seemed to indicate
that the period Of readjustment
through which stock markets had been
passing for several years was APP
preaching its end, but. as frequently
occurs when a clear day changes 10
rainy one, the signs were disappointing,
and we are still experiencing a process
OF shrinking values, the end of which
is not in sight. In other days or other
years the standard American railroad
stocks were accepted on per cent
basis as very satisfactory investments,
and when they sold below that basis OF
yield they were classed as bargains, and
except in occasional flurries were soon
returned to their normal yield by the
purchasing demand of the public
To-day. however, even per cent does
not lure the public to let It's purse
strings loose and come into the market
for the numerous buying opportunities
offered in high class rails and indus
trials, alfording yields ranging from on
per cent to more than per cent. Since
the beginning OF 1913 declines in the
railroad list as exhibited in The Trib-
une's table Of averages have gone from
an average for the month OF January
of 135.1S3 to an average April 70 or
124 90S. In The Tribune's industrial
list the high for January was S1.JO.
while the average given on April 70
was So 800 A reasonable presumption
may be allowed that this indifference
to investments will correct itself, al
lowing that general business is begin
ming 10 show a slowing down, and re-
striction Of trade, If continued TO the
point of weakening the requirements
for money, will leave the security mar
kets with two supports: One will be
the natural turning to investments as
means OF utilizing surplus funds. and
the other will be a diminishing supply
Of new issues owing TO the lack OF de-
mand for funds to meet industrial de-
velopments.
A situation which requires the de-
preston of one interest TO allow the
development of another is not healthy
however, and indicates a functional dis
order or disorders which demand treat
ment. The country needs the services
Of expert diagnosticians, who VIII de-
fine the actual ailments and prescribe
remedies TO cure them. AS in ordinary
ills in the human body, so In our
national indisposition every layman has
remedy and every quack doctor has
a cure-all, and the country has been
beset by every form Of financial ana
Industrial pills and plasters which have
been applied to the superficial rather
than the root and source Of the trouble.
Politicians have undertaken TO heal the
sore spots by enacting measures and
labelling them Uncle Sans Reliable
Regulator" But their treatment has
the earmarks Of patent medicine, and
so far has been Just about as effective.
Reformers. looking through astigmatc
ewes. have discovered spots and have
suggested correctives which have only
aggravated the Ills of the investment
market by disturbing confidence and
adding to the burdens Of the country
as a whole.
One Of the recognized deformities
which have grown to such proportions
that no longer do the business men or
the nation fail TO acknowledge them IS
our archaic banking and currency sys-
TEN. which throttles the progress OF
finance and industry and is chiefly re-
sponsible for periodical panics, which
in their wake leave years OF depression.
as evidenced since 1907. Since the open
| ing Of the 63d Congress more than
score of banking and currency bills have
been introduced all destined in the eyes
of the different authors to prevent
panics and stimulate business activity.
Some OF these measures have been
written without a true knowledge Of
banking as national asset and the
financial necessities Of the future.
There is a point of merit In the collec-
ton as whole. centred In the fact
that public interest has reached such a
stage something will be attempted dur
Ing the present Congress which will be
a step forward and an improvement on
the Aldrich- Vreeland act This law,
which was expected to prevent ex-
tremely high money by allowing re-
course TO the national Treasury In pc
RODS of dire necessity, so far has
nulifed its usefulness owing TO the
sacrifice and expense involved In re-
sorting to that measure for relief. OF
course, If any such alarming develop
ments should arise similar TO the one
| in 1907, the Aldrich-Vr act would
meet the issue and prevent an acute
money issue, but II is not 20 much the
necessity for meeting extreme condi-
tions that relief is needed as it is to
allow an automatic expansion Of funds.
which will be as sensitive to the vary
ing changes Of the industrial and in
yestment movements as the weather
yane which moves and turns with each
change Of air current
In a speech delivered by the Hon.
Carter Glass. chairman Of sub-commit-