The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-04-13
MARKET IS SOLD
TO STANDST|LL
Will 1t Be Able to Bear Up
Against Enormous Financing
Announced2
D EN- AND FOR MILLIONS
Street Is Not Shaken by Many
Shocks That Have Been
Administered.
DEMAND FOR MILLIONS

New York. april 1.-THE financial
world withstards shock after shock
with remarkable fortitude
Neither wars nor Hoods. tariff revi-
sion bills nor Legislation inimical to
the railroads. neither the death OF the
worlds greatest ffancicr. nor deep
rooted monetary stringency have been
able to shake the security markets
afrash.
In Wall Street parlance. the stock
market has been sold TO d standstill.
Whether II can bear up against all
the enormous financing announced and
impending remains to be demonstrate
cd
The Pcnns ylvania Railroad an
nounces s45,0o0.OO0 stock Issue,
which sent the shares down to the
lowest price OF recent years. The st.
Paul Railroad is floating 100000 0V
La per cent bonds shade below
part this issue is available for savings
banks, and Is otherwise gilt-edgcd.
Tho effect upon other high grade bonds
has been depressing. since the latter
hos been selling upon income basis
OF appreciably less than l-2 per cent
The New York; Central has cold Sl0.-
100000 one-ycar notes in London on a
8-8 per cent basis. a piece of tenn
costly, but means that the evil day
when permanent financing must be
faced has merely been postponed.
The subway bankers have called for
fully $2l.000000. and viii shortly be
In the market for much larger sums.
New York City is expected to borrow
upwards Of s50,000,oo0. The Hartman
roads likewise arc regarded as pro-
spective applicants for funds, while
the Chesapeake and Ohio may bring
forward new issue ut any moment.
New York State needs millions for
canal purposes, but cannot get them
at per cent. the rate prescribed By
law.
The aggregate capital needs OF the
Federal and state governments (Which
are not as economical AZ they might
boy. municipalities (Which are annu-
ally withdrawing larger and larger
sums from productive purposcs), rail
roads (Which must expand. whether
they are well-on or poorlyon), and
tho Industrial corporations will. dur
ing 1913. reach staggering figure
Abroad, capital demands are also cx-
ccssve.
VIII the worlds rncpny markets be
able to meet all obligations next fan?
A good many very influential Amcri-
can bankers do not believe serious
trouble can he ayerted. and they are
advising their clients To secure facili-
ties which viii not terminate until
1914
This may sound sensational II may
be criticized as meeting trouble half
way. as crossing bridges before we
come to them. and as likely to cause
moro harm than good. The prudent
man OF large affairs however. prefers
to look ahead and diagnose the future
as carefully as conditions permit and
If he foresees squalls, he naturally
nullo sail IN reduce his risks
No cares to adopt the role of pro-
phct, especially prophet of trouble,
but tho views here put on paper are
being expressed privately by bankers
and hnanciers of recognized acumen.
Having said this, 1t is for each busi-
ness man To do his own thinking. and
then make his own plans, according
TO his own deductions
The long awaited tariff bill threw
neither commercial nor financial world
into decentralization
Speaking generally, the bill as sub
mitted TO Congress embodies genuine
reductions in schedules which bear
heavily upon the great body OF the
people. Nor is any important industry
legitimately entitled to consideration
apt to be ruined, no matter how many
loud assertions to the contrary may
be made by certain interests, which
heretofore have been allowed to feed
unmolested from the public financial
trough.
The principle of reciprocity is one
entitled to earnest consideration by
our legislators We have had expo
riences with more than one European
country, which ought to be kept in
mind in revising our tarif-the potash
controversy with Germany may be
cited as n case In point. The United
States Is thoroughly entitled to. de-
mand guild pro quo for tariff favors
granted to the highly protected ma
lions of Continental Europe Some or
them are smacking their lips in an
ticipation OF obtaining juicy contracts
here the moment tariff barriers arc
removed. Our statesmen must not be
too hasty in throwing away opportu
mites to secure benefits from those to
whom 1t is proposed TO grant sonces-
sions on this side.
Trade is keeping up remarkably
we'll. The tariff bill has had no dras-
ito effect
The volume Of immigration is an en-
couraging feature. The damage done
by the recent floods was less than at
first estimated. and the railroads have
displayed characteristic American
energy in restoring transportation ia
cillties to the devastated areas. Rail-
road earnings will suffer. but not Sc
riously. Good intentions have per-
nicious results A so called BLUE Sky
law mas Deen introduced at Albany
for the avowed purpose of putting a
stop to the fraudulent fotation of Sc
curities.
The measure provides for an exam
liner Of securities, upon whom would
devolve the superhuman task of pass
ing upon the legitimacy of every stock.
bond and other obligation offered for
sale. This individual would have to
judge whether n company promises a
fair return on the stocks, bonds and
other securities offered by it for sale"
Who. under heaven, could discharge
such a duty? Can any mortal foresee
whether an enterprise will prove n
success or n failure? If New York
State could find an individual Of such
prophetic vision he would be worth, not
the few paltry thousands per annum
which the State would pay him, but
untold millions of dollars a year to
the countrys greatest capitalists.