New-York tribune., 1913-07-16
BRIEF NOTES OF FINANCE
paragraphs Of Current Interest
for the Investor.

,he absence OF any encOuragemont
-,ared in the news received from the
al'p. ai,,s Euroueau stock markets are be-
,-.,re TO make deductions alons the line
sn'. limited resources of the allies,
~ viu mean an early exhaustion OF
w., t.i.g material More funds must be
As,a5 and as the situation stands to-
ne outlook is anything but bright
v" .be securing of money to continue
entities. This thought is not new, but
tines II requires time for stock mar
20 arrive al a sane basis of reason
~, osnecialIy when information affecting
"' outside factors is so unreliable
.rcb of the news has been coming
.-,,, the Near East
Tn. Government Bond Market.
according to a dispatch from Washing
- The government is going to support
". bord market. as it is claimed that the
s.,,,re recently of government bonds be-
~. ,or was caused by bear operators on
.so New York stock Exchange in an at
..r,,t "a force the government TO redeem
80 bonds with a per cent issue or TO
,..credit the pending currency legislation.
Tho washington information states that
co.rstarv McAdoo may decide to call on
asIonal banks for 10 per cent or about
O0 of these per cent bonds 10
,beckmate a further movement TO depress
49, market for these securities. Such in
.o-r,ation is misleading, as the govern
,,.rt cannot call for these bonds before
,q2o the date of their expiration. What
,,ic5t be done, however. is that the Sec
,etorv could require the banks 10 put mp
.55itional bonds 20 secure circulation ana
,bis would stimulate the market and pre-
,.,,t further declines, as the floating sup
,,v n these bonds is small, and TO so into
,be omen market and bid for them would
ssna No the price The idea that any bear
r,ovsment is in progress 10 depress the
prices Of these bonds is not borne out by
,,oriry among the leading city banks.
what is happening is that country bank
=. are sending I'm their bonds to be dis
n,ssd Of. fearing some peculiar legisla-
linn which may cause them losses as
result of the proposed new currency bill
and the possibility that new per cent
bonds will be issued without providing for
retiring the present per cent issue.
Do Not Let Go Easily.
One thing may be said Of foreign in
vestors and that is that they do not sell
their investment issues as freely as in
yestors in this country dispose of their
holdings. II is q well known tradition
fbat the English, French and Germans
buy securities TO hold and not 10 sell.
Even in promotions such as mines and
other speculative properties to be deyel-
op,d Europeans do not get "cold feet
as rule and they are looked upon as
good hackers II the enterprise involved
gives promise Of reward. An evidence OF
the clingiug qualities Of the holders OF
American securities abroad even during
the period of disturbance and forced
liquidation through which we have been
passing during the last several months is
given I'm the report that Of 5000 shares OF
American r .lephone and Telegraph stocks
sold IN France I'm 1912 as bearer certih-
Gates only six shares have so far been
returned % this country. 1t is impossible
10 state anything like the exact figures
Of the total Of American securities held
abroad. but the sum is enormous and the
hundred or so millions returned since the
beginning Of the Balkan war are only
drop in the bucket compared with what
might come back 10 US If circumstance
made il necessary or advisable for the
foreigu investors 10 dispose Of all their
holdings of our stocks and bonds.
Cause Of Extra Firm Money.
The hardening Of the local money mar
kst AT time when # was thought an
easier tendency would be shown in view
Of the July period OF disbursements hay
ing passed calls attention TO the some
what extended condition Of the banks
throughout the country and the Possibility
that by the time the crops begin 70 move
money requirements may be such that
the strain will be rather severe, and that
some difficulty may be experienced 10
moving the crops The argument has
been set forth that radical ideas in parts
Of the proposed currency legislation may
be responsible for some exercise OF extra
precaution at this time, as II would seem
that the strong position being maintained
By the bankers I'm central reserve cities is
sufficiently protective 90 insure an adc-
Quate supply Of funds for crop purposes
under a normal tone OF sentiment not
affected by political influences. 1t does
not appear that the proposed currency
legislation is responsible for sudden de-
development of frmer rates for time
money. but rather the cause is the with
drswal Of gold for foreign account TO the
point when the Sub-Treasury has no gold
bars left and further enga agements VIII De
in American eagles the real coin Of the
realm, which bankers are loath TO see
departing from our reserves Of actual