New-York tribune., 1914-12-21
REVIEW OF THE
WEEK IN FINANCE
Rate Decision Means More
for Confidence than in
Railroad Cash.
CARRIERS CREDIT
MUCH IMPROVED
Securities Little Changed by
Good News-TradiHg Quiet
Demand Sterling Lower.

A substantial advance In freight rates
for the Eastern railroads was added
last week 10 the many influences work
ing toward improvement in this coun-
try's business and finance. The actual
amount gained by the carriers con-
cerned Is not so important as the lndl-
cation Of change in the attitude of the
federal authorities toward vested IN
terests. In place Of the fiat per cent
increase asked, the relief afforded VIII,
il is estimated, amount TO around 3, ana
gross earnings have been greatly re-
duced since the first application was
made. But, as railroad depression made
itself felt in ever widening circles
throughout the nations industry, the
assurance that corporate income can be
regulated up as well as down means
general encouragement. Bondholders
will find confidence in their invest
ments. shaken by constantly diminish
ing margin Of safety, now much re
stored. Railroad credit should be
strengthened, and the refunding OF the
great mass Of obligations maturing the
coming year made easier.
Though trading IN a full list OF
stocks had been m progress Tor more
than three days when news or the de-
cision came 70 the market, business IN
securities was restricted, and little re-
Spouse was made to the favorable news.
What appeared 70 be widespread de-
cline WAS in progress Friday morning,
when announcement OF the Interstate
Commerce Commissions action was
first received. This was checked as
traders covered their short commit
ments, and then the list made rather
uncertain upturn. On Saturday busl-
ness in stocks and bonds was exception
ally light, with little definite trend IN
prices.
Investment Buying Light.
At the middle Of the week the stock
market had settled down TO midsummer
dulness. Foreign liquidation Of the
kind feared was absent, but II was rec
ognized that London would sell on ad-
vances. When stocks reach London's
settlement prices of July p IT rs per
mitted to call collateral loans mn that
market and TO close out customers &C
counts. Mondays sharp advance here,
added 10 that of the Saturday before,
when open trading IN stocks was trst
resumed, resulted i'm an appreciate
amount of sales in this market for Lon
don account. To this was added profit
taking and some professional short
selling on this side. As result, the
stock list lost a good part of ITS pre-
vious improvement.
Apparently investment buying, that
forced prices up so abruptly on the
first two days Of business. was not in
so great volume as had been supposed,
for in the middle OF the week business
was small and the market dull. Specu-
lative operations were limited by condi-
tions of trading Mnimums at one end
Of the scale and probable London sell
ing at the other reduced the range for
profitable operations. In addition, the
added burden of the new war tax served
to cut down materially possible profits
of floor traders.
Money for collateral loans on call
and for time accommodation was abun-
dant. Toward the end OF the week call
loans on the floor were renewed at 3
per cent. and outside rates for long
standing contracts tended toward the
same level. Call money, frozen so long
through suspension of trading, IS now
LIQUID. and the banks can realize on II
at will Time accommodation was Of
fered al per cent, with tendency
toward further case.
RediscOunt Rate Here Lowered.
In recognition Of the accumulation
of idle funds because of reduced needs
of general business, and to hasten the
cancellation of emergency currency,
the Federal Reserve Board allowed