New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-07-18
BRIEF NOTES OF FINANCE
Paragraphs of Current Interest
for the Investor.

The return Of the Bank Of England Tor
80. week apparently confirms the sup
-s,,ion that this institution has in It's
administration provided judiciously
the strain In foreign money matters.
-. proportion Of reserve to Liabilities
even al 5325 per cent, which is an
..a,tioually high ratio, and has only
-. Exceeded once during the last ten
Comparing this percentage with
t.n-vear average OF 49.S per cent 1t
~ he recognized that the building up or
I've has been effective. Furthermore
- Il IS considered that the safest line
.ss.rye is around 40 per cent the posi-
V NJ the bank as exhibited In TINS
Is return may be appreciated. There
ms 10 be no inclination on the part OF
-. Rank of England TO reduce its rate OF
s,.co,,nt and the same conservative policy
h.blv will be. continued and no chances
au no taken while the Continental situa-
49,, remains i'm state Of uncertainty.
-bere are certain items which do not
chow extraordinary strength, but were
,s-a no reasons for caution the bank
mid lower its discount rate. as there
enid then be no necessity for protecting
,,s institution against outside demands
for gold.
Tips Of The Street.
rbsrs never is a time when the habitues
-, wall Street. as well as the public. are
,ot looking for inside information or
Gins which will tell them OF some par
,icnlar stock or bond which Is booked
o. rise or decline. Such Information
has about the percentage Of unreliaoility
nat is shown in the failures recorded
sr,onc those who speculate IN the STOCK
-,ortst While IL is not possible 70
o-rive AZ actual figures as regards the
,prher OF persons out OF every hundred
~ lose money in speculation, it may
=. ssfe n assume that fully 10 per cent
~ these people lose their money ana
sor,e estimates place the figures at from
a N 81 per cent as representing the fail
pres The stocks usually selected by the
tpstsrs are United States Steel. Read
ing. Aralgamated Copper. Union Pacihc
end some others Of the standard Issues
for the reason that when the market eX-
bibi,s any activity these stocks are al
most certain 20 be among the active par
tieinants. II not in actual leadership.
Since last year a wider range OF posi-
blities has been afforded for the upsters'
as some new specialties, including OH
stocks, have been conspicuous for move
rnents in both directions. and as some OF
them are now selling at prices when
make their yields exceptionally attractive
II is not hard TO create some interest D!
selecting one OF them for an advance
which It would seem ought 10 follow as
natural course Of action. However even
At this time disappointments are in order
and a recent tip on California Petroleum.
which stated that the stock would sho"
an advance of several points was io--
lowed yesterday by q decline of prac-
ticsllv the number OF points II was pre-
dicted IL would advance. Occasionally
tipster hits Il right but so does the man
who guesses the weather
Canadian Bank Changes.
The recent revision Of the Canadian
banking act gives to the chartered banks
enlarged powers of note issues. UnuI
lgB Canadian banks were permitted 10
issue notes 10 the extent OF their paid-up
unimpaired capital. without any special
security given except a per cent ie-
dempuon fund TO pay the notes Of default
ing hanks. However. as bank notes are
prior lien on the assets OF the ISSUING
banks this 8 per cent reserve iund Is
never called into requisitiOu and has been
an unnecessary provision for the safety
Of the notes In 1908 the banks were
given further rights Of issue during the
months between August 81 and February
q. when they were authorized 10 issue
subject 70 a tax Of per cent In excess
Of pald-up capital equal to Is per cent oil
capital and surplus combined. The recent
amendment established a central gold re-
serve. and Canadian banks are now au-
thorized 10 issue notes TO the extent OF
the gold coin and Dominion notes heid lo'
them in central gold reserve fund. As
an emergency act the six months per
mission 70 increase .untaNed credit notes
% the extent Of their capital and emeT-
gency issues 20 the extent OF 10 PEI
cent Of combined capital and surplus
subject 10 per cent tax, contrasts
with the limitation placed on the oahNS
Of the United States in note issuing pFl'l-
leges AS IL stands to-day no circulation
whatever can be put out in this country
unless an equivalent in United states
bonds is deposited or under the emeI-
gency clause other classes Of bonds are
given as security, while the notes are
subject 20 a graduating tax. More fiee-
dom has been granted Canadian bank
ing institutions by reason Of the fact that
the Canadian law does not prescribe
fixed reserve against deposits. The gov
eminent Of Canada does not look upon
Canadian banks a. criminal institutions
seeking 70 violate the laws Of the land'
and does not place restrictions which VIII
be detrimental 10 the best interests OF the
Dominion. In the United States the atu-
tude OF the government toward banks
seems 10 be quite the opposite, and IN
stead Of trusting American bankers as
whole there is a disposition shown tow
ard distressing them, particularly the
leading institutions in the reserve cities
and the men who have gained world re-
n0wn as bankers and financiers.