New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-08
BRIEF NOTES OF FINANCE
Paragraphs of Current Interest
for the Investor.

The alarm sounded by jacob SCnlh oe-
tore the Chamber of Commerce regarding
tho dangers ahead of this country unless
relief Is afforded by more elastic cur
-encv is not necessarily as disturbing as
tho first impression indicates. 1t may De
res eoned first that many other noted
,.,,Lars do not agree with him entirely,
-. e,oreraIlv there is unity Of belief
hat this country must have more feX-
ihle banking and currency system. There
gro some points TO be considered in the
nrnsent situation: for instance, the osten-
nj trade balance as indicated by gov
eminent figures is in our favor to the
,,,oppt Of si07. i99. 456 for the nine months
uoriod ended September so This COM
,,rss with S2S3O5S,2S2 the balance for the
la,,e period in 1912. and 500, 49, O5 in 1911
a, the present time American bankers
hove large balances with their foreign
correspondents and other financial opera
lions have been toward an accumulation
- disnosa5le funds abroad. Reports from
trade centres throughout this country do
,,ot indicate that extensions are increas-
INC and the general tendency seems TO be
coward hand-to-mouth purchasing of
s,ocks rather than heavy buying for fut-
ura requirements. Usually panics do not
totoy hut precede retrenchment. How
ayor warnings serve their purpose, and
,,ben emanating from men like Mr. Schiff
they make the people think and are help
ful in warding off disaster.
The Copper Situation.
During the last six months of 1912 and
al times during the present year copper
interests have given out information in
dlcatirg that with the reduced stocks on
hand. both abroad and In this country,
the prospect for higher prices Of the metal
and in turn Of copper stocks was excel
lent. and that It was desirable for pur-
chasers to take advantage of prices then
prevailing. Such advice might have been
reasonable If the demand for copper
metal had really existed and the buying
movement begun during 1912 had con-
tinued 1t is recognized now that the
future of copper is open to question, due
to the declining tendency OF business in
the Industrial world where the bulk of
copper products is absorbed. Even with
a strike at the Rio Tinto properties, the
price Of copper metal is displaying a
world at present there are few signs of
betterment in the copper trade. A revival
OF business OF course would make de-
cided difference, but when railroads are
not spending money for increased electri-
fcation and there is a restriction of buy
ing in other channels, even pools cannot
keep up prices and profits must suffer,
which in turn must be reflected in the
securities. 1t does not follow that there
will be much of reduction in prices, but
at the same time the prospect of an ad-
vance in the near future is not favorable.
Railroad reports show that there is
decreasing tendency in the figures of
gross earnings and sharp decline In net
revenue. Comparison with 1912 exhibits
a decidedly different situation between
then and now, as at that time there was
bumper crop in agricultural products
which stimulated business and increased
railroad gross earnings to record points.
This volume of traffic overcame the
higher cost of operation and general eX-
penses so that many instances of net
increases were reported. In table COM
piled by Dow, Jones & Co. covering the
reports Of fifteen of the leading systems
for the three months period ended Sep
TENDER 80 only two systems show gains
in net The roads selected are the Atchi-
son. Baltimore & Ohio. Canadian Pacific,
Chesapeake & Ohio ST. Paul. Chicago &
Northwestern. Erie. Illinois Central, Lee
high Valley, Louisville & Nashville, New
Haven, Northern Pacific. Reading, South
ern Pacific and Union Pacific. The two
roads showing gains in net are the Bal
timore e. Ohio and the Illinois Central.
The outlook, in view of a slowing down
Of trade and a shortage in crops, is not
especially bright for railroad earnings.
During the month Of October, according
TO The Bond Buyer" the municipalities
In the United States sold bonds and notes
to the aggregate par value Of $35,272,99o, as
against $50, 7O3 1874 i'm September; A9,555,6i6
in August and $47.S74,6s7 in October 1912.
During October there was exceptionally
keen interest displayed in municipal is
sues, largely due to the passage of the
new income tax law. In comparing the
monthly totals for the last two years the
records show that the financing arranged
during the first seven months of 1912 ex-
ceeded that for the corresponding period
this year by about S55,OOO00O. In the next
three months however this excess in
1912 was reduced more than one-hslf. This
fact may be taken as an indication of
sharp improvement in the market trend