The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-04-27
Users of Capital Balk at
High Demands OF
Leaders.
AWAIT EASIER TERM S
Country's Trade Seems to Be
Rcadiusting Itself on
Sane Basis.


their money some two years ago and
have been cXactins harder terms from
borrowers ever since.
But has the rising tide il. she price
OF capital reached its height? Is an
Glib flow now to set in?
There are indica lions that YOU will
not be able To demand so generous II
return on your savings next year. No
tree. quite reaches heaven. The up
ward movement has been phenomenal.
Conditions are becoming Impossible.
Intcrborough Postpones Its issues.
The decision OF j. r. Morgan & Co
TO postpone the SIS. 100000 INTERIOR
ough bond issue is significant. 1t is a
concrete illustration OF the disposition
of big borrowers to so on strike.
The head OF another international
banking house OF the same class de-
clared privately carly in the week:
Il am pcrsuading the railroads with
which am connected not to offer
any more bonds at present am con-
rinced that the downward movement in
investment securities has about ended.
and that borrowers will be able To OBJ
tain long term funds on easier terms
within the next year or so. For that
reason II seems preferable to sell short
date notes for urgent needs now"
ON what grounds are borrowers bas-
ing their new attitude?
Well, the cost of capital has reached
height that renders It extremely
difficult to earn a full return on II. No
aNoidablc enterprises or extensions will
ne undertaken. Curtailment. not ex-
pansion, will he the watchword
This conservatism. this dimlnution
In the demand -or capital. will natur-
ally react upon the supply and upon
the price thereof
Already general trade throughout
the United States Is decreasing in vol
umo. And the falling off IN imports,
which was forecast a week ago. is
setting in very noticeably. Tariff un-
ccrtainties will aggravate this move
ment during the next few months.
situation Abroad.
Capital is still extremely timid
abroad, but despite the latest unpleas-
antness caused By Montencgros de-
FAINT occupation Of Scutari. :hc end
OF the war disturbances is In sight.
Europe's $500, 00c 900 of boarded gold
cannot remain useless much longer;
II is already beginning to reappear,
and its full disagreement should en-
able European governments to obtain
their needed war and other loans
without causing acute, Worldwide dis
turbance.
Therefore, given marked rctrench-
mcnt In business here, radical
shrinkage In merchandise importations
from overseas, the postponemcnt.
wherever possible, of important rail-
road and Industrial Rotations. and the
unrestrained return TO banking chan
nels of tho millions of dollars now
lying dormant Acknowledgment these
looked for developments do you not
begin 10 see why our most influential
underwriters OF securities are count
ing upon being able to raise capital
on less onerOus terms by ana by?
Those who had feared grave none
tary trouble next autumn are now
hopeful that the new turn of events
will remove all danger. However
they declare that there is need for dis
couraSing every form of recklessness
and eNtrava gancs that would tend 10
expand credit
The Return to sanity.
Tho return TO sanity in Investments
cannot nut be accelerated by the col
lapse OF many ventures which were
Heated 10 appeasc the hunger ~ in.
Ncstors' for abnormal returns OF
their savings.
Burnt bairns dread fire. Thou.
sands of investors clamored for Sc
curities that would pay them ! ne,
cent or better. They got thcm--a NJ
now they wish they hadn't The Stun,
In such stocks has been cruel-mor,
than $50 per share in several case
and SIS in Rumely common.
investors will learn sooner or late
that thoroughly safe bond or a sea
soncd railroad stock paying : to
per cent is more TO be desired than
purely speculative. un,ried. inflated is
sue paying per cent or more.
The harm done hN Such ipci5en,s =,
The bursting OF the Rumely bubbl
and the sensational manipulation q
certain oil. industrial and mercantil
stocks is incalculable
Not only do many thousands OF rela
fircly poor people lose hard-earne
savings. but r. frightful crop OF an
mostly toward wall Street In pa,
ticuiar and capital In general is sow
the Teaplns OF which bodies no goo
for American institutions On sue
things does Socialism feed and wa
strong
Legislation at Albany.
The bin now before Albany callii
for accurate financial statements fro
corporations is based on "A righteo,
principle. and It should be passed
not as ii stands. al least In mod!fe
form.
The New York stock Exchange rea
affairs before the public, has cor
the length OF extending to toilec
classes in finance and economies inv
tations To visit the institution and hr
afforded them unprecedented opporun
ties for studying the machinery Of II
exchange. Thus does the Stock =,
change hope 10 teach the young ia,
how 10 shoot straight.
Should stocks be bought nowq
That question is put daily. ,youI
not accept the responsibility Of ii,
ing an unqualified reply IN the affirm
live at this stage.
Next month conditions may warra,
"a more definite stand.
Meanwhile. however, we'll electf
bonds netting about ; per cent shouI
prove sound investments at cure,
levels.
New York, April 26.-Prices agai
depressed SHARPLY to-day on the Stoc
Exchange The weeks accumulate
az depressing influences and the MAJ
ketg lack Of support encouraged bea
traders 10 renewed efforts. and dun
ing the forepart OF to-day's sessIo
selling was carried on with increase
yiHor. Many of the leading stocl
were forced down two points or SO. ar
among the specialitics losses ran 6
high as eight fOjntsm Nearly 8; scoi