The sun., 1913-11-24
TRADE REACTION GOES on
Outlook Is for the Development
" the Good Bond Market
Long Needed.


u pe accepted az an accura'" ep''oine VI
and business movements. Bank
ing power In not as strong ,as It will have
In be =, accommodate the demands of n
new season of expausiye effort The state
,f affnirs in III. business world does hot
mean that nroii,nbIc activities have ahead
of them n urospect of ANYTHING like COM
nlet. susn.nsiou Econo,nic cndeavor is
mot onnrnnrhinv vid,snr.nd and severe
danression I, 10 workinp through de-
nr...io, ,o n neu .rn nf coustrurt,on.
~, r,a,,or I, ,h. n.r,lstan,e of des,ruc-
,ivs n,rnos.s calls for nati,nc, and pru-
drnc, on the mart of the managers Of en-
,srnrisn ,,d th, inv.s,nrs therein sooner
mr. Int.r viii Inc discovered that a founda-
zion has h.ap i,iL fnr new .nt,rurise. and
whom TINT discovery Is made the interests
ana individuals who have refused to be-
lieye that the economic world was coming
TO an end all at once will be found To have
taken earliest advantage OF the opportu.
mites which may already have begun TO
present themselves i'm the field of values
The better position of the banks is tes.
titled to by the growing accumulations of
cash This is the first evidence which al
waye appears of trade and Industrial con-
traction. Of shrinking volumes and fall
ing prices. Liquidation Of the loan ac-
count has made some contribution To the
and the indications OF general business are
that there will be further contributions
of the same sort. Reduction of loans
carries with IL Il reduction or deposits
created by the grant OF bank credit. and
as a result OF the tendency OF 'ash mold
ings TO increase the ratio OF bank re-
serves to liabilities rises the more rap
idly. In order to establish the banking
basis for n new constructive era there
Ntx..x efnf MANI Al
posits as they are drawn upon Tor I'M
vestments which have been rendered at.
tractive by the shr!nkage of quoted
values.
In times like these trode l!quiuauoil'
following large huu'dat'on IN the sc
curities markets and resulting IN bank
accumulation OF cash. has its customary
sequel in steady absorption OF 'he Det-
ter grade of corporate ana puh!ic obll ga
tons. Unless something occurs 10 aiter
contemporary financial circumstances IN
the near future we may expect 10 see the
development AT last or III" good pond
market which always underles sus-
tanned forward economic movement IL
this is what Is TO happen. ana II ~ al
together probable. there is no special rea-
son for the anxiety manifested recently
about the refinancinG which has to be
done in order to tax" care OF the large
aggregate OF maturing bond and note
iSsues. 1t has been calculated that some
thing like $l.OOO.OOO.Oo" or bonds ana
notes Of American corporations are pay
able in the next three years, NOR" than
half OF which will be due next year. All
that Is necessary. however, to discharge
these obligations satisfactorily will be the
development OF such an excellent bond
market NJ that which il now indicated
by all the signs of the moment in the
-F,t.
economic crises
What has just been said applies no.
only to ourselves. but 10 the situation
abroad Europe il greatly concerned over
the in,peuding mass OF securities renr.-
resenting both public and private bor
rowinps which gill have 10 obtain a
market before long in order IN fre.. ~,
enormous amount of credi, locked up in
floating debt and In order 10 brinr cant
ia, into Tho central ra,.,yo,-s uharo /,
will he ov,i,oh,. for .xne,di,ure Il, nro.
ductiv. forms Of -.,i,h rrea.i,,, .,.
de,yor I,n,ess hovevsr sor,o ,,,.,r,oi,
and no-+.n,ous arcid.n, ,n,.r,.ras r.,,;
.he onerat,ons ~ Tho ,r,,,. indus,.i,, a,,n
financial re,dtus.we,, n,h,c, 10 -, ,,,',,
-.ss ,here viii no ,hro,1 ,s a, r,,,
s,oy,l,. ,,ro,,ir. i,,, ,,,,r,' n,,,,i. ="
,,or y, ;n,.as,,.,', .'," "oSofp,
IN. ma ,r,oI,ih,a rr.r,,,s> ~, 20
,ha s;,,as', ,, r.I " 'So'H j"
,,a, ra,,n.,,7 WI ouc" d" nor
,ho ,.n,,n,,.,,o ~ 'e''.c VIA
,oa,I ., va "'"p
,pn.o ,,o,, - ,..' '"S 'n'I'F
~. nrs,d,na,aa "P'u'" q" N''ueS
>;aanu.Suo 4, {.
,hn, a,,.,,', NV =" "e "Ssuin'"
,,',.o., '' 'i' i"'t Oh I'M
b. a. w 'o'iouot'" WIN su'ty
rI.s 80 'o''e" an" ""iheS''''
norr,,r.r,i, s,rnnu. "Nia"E Na.,E put
y,r nnva h.ar IT,, :. o.'iit r'uch
so,,roos nv. o,',,, ~ n'''N'ht re,
AND on,y % undor',o s''n''"nn ,,,n;, I'orui."u
Iudgir, ,ron, sn,,s -, ~
corn,nen, no ,ha las, ,. -
,,rns ~, ,,. 60, Wv. re-
Europe and tho rsJ,xot,on +, ,hn w. :,
Stree, r,o,av ,rar,o, ha,,, -, 49,,
tnr,ro+ion nt hn.,,, ,,aa,,
lil,.Iihood -, ~ oa,, ,,,, ~
dulenrco ~ h"rro,.,,,, da @ - ~ M,
d,snens.,. or crod;, ,,nan,,h,u .,,''
con hann., h,,, !, 10 ho ','n
should he avoid.I Eor sa'.ar,, ',,n,.
honl,ir, ,o.ar,a. ho,,n . $3.50 -
,,rdnr ,,. ,,,oi,, ~. '"'.''', -
s,r,,o,u.a ,nd ha,,, -. .
anano,n, - nn', , .i!'oI'.nt
,h., ,h ,ns.,, W. 'sl''N ~
80, , mum. % Wnlch were
a,,,, ,,,,'.. T. -, ' 'r, fuo "ro",''
Uo.,,,"m M .ep,l Vi 'H''
,in' S"HiS ma
o, .,n VI ''''"per
o' Wv e'."'" successive
-, le"'.t' '''io u''o'' per cent,
80 ' P~'t t"' "hS pIo'"iscu mann
,o,,an -, ,,n1er,,',rD p'VpD,'."H n, ''"h neri! Il