The Birmingham age-herald., 1914-04-07
Going in Debt More Rapidly Than Is the Federal
 Government
SOUTH IN BETTER
 SHAPE THAN OTHERS
Securities of This Section Now Looked Upon With Special Favor by Investors-Europe Wants
 More Money
By UPLAND.

New York, April e.-(Special 1.-The finance department of New York city is fortunate, for il is to be one of the bene- ficiaries of the plethoric money market. It may be that the finance minister of the city has followed the precedents of recent years in approaching informally, almost impersonally, the money markets with intent to discover whether he may be sure that an offering of s65, ,00O,0oo of New York city bonds running % years and bearing A per cent interest will find ready market. It would, however, in the opinion of some of the experts, not be as essentia lthis spring thus to feel of the markets as has been the case at other times when the finance department has found it expedient to float large block of city stock. The fact that money is plentiful and that about the only invest ment now noticeable in this city is that which seeks good bonds should make ii reasonable for the finance minister to rely upon the marketing Of as large block of bonds as $65,000. 600 and at a sufficient premium possibly to reduce the income basis of these bonds to per cent, per haps little less.
 The state of New ork and the city of
 
 city bonds has been absorbed. have placed upon the market within a year consider ably over S1o0,00o000 of longtime securi- ties. In May of last year 1t was found necessary to offer New York city bonds bearing interest at the rate of 41s per cent Therefore, the reduction in the rate denominated in the bonds which are to be sold speedily of a quarter of per cent of itself reveals the ease of the money market and hes ei of inv acff.r to secure longtime bonds averaging about per cent interest and having behind them the best of credit
 Long Time Obligations
 The magnitude of the offering of long time securities within a single year be- hind which stands the credit of New York state and of New York city has led to criticism. The fear is frequently acknowledge that both state and city are rushing recklessly into debt. The state and the municipality are surpasing greatly the federal government in this respect For while it seems to be deemed the prli- dent policy for the government grad ually but surely to 1quidate the public debt a tendency which was recently illus trated by the action Of Congress in deeid- Ing that the new government railroad ir Alaska must be paid for out of appropria- tions, that is to say, out of treasury re- | state are heaping up great masses of longtime obligations. Some have thought that an apparent depreciation in real property in New York city may be ex- plained by the cumulative floating of long time obligations
 The True Reason
 The criticism, however is not regarded by Mayor Mitchell or his associates in the financing department of this city as jus iA1 t,.a, Is. .-r.
 ceived fro mthe sale of $65. .00O, 900 bonds represents for the most part public sm- provements that have real and permanent value. Some part of this money is to be used in payment for what remains to be done upon the great aqueduct system That unquestionably is a splendid investment Tor the city. There is no doubt about thls Tn the business and financial world of New York. Part of the money is to be utilized in payment of other public Improvements which have permanent value. That Is true of the expenditure which the state is making upon a large scale. While some have criticised, as was recently done in Washington, the policy of enlarging the Erie canal so as to per- init the passage through it of large barges, yet the general opinion of business
 men is that this work will prove an excel lent investment to New York state So also will the expenditure of many mil | lions for the improvement of highways, | provided the money be honestly ex- l pended.
 | The marketing of this issue will furnish visible evidence of the eagerness with which investing capital Is now seeking | good opportunities. The impression in this city is that this new offering of $65 O00, ,OOo of Az per cent bonds will be greatly over | subscribed The issue looks tempting, particularly because these securities escape the income tax collector.
 l The money received for this sale will | speedily find it's way back to the banks | or to business channels. Almost all of | it will be expended within few months. In this offering and in the subscriptions l to it which in large amounts will un- doubtedly be made there is to be diseov- cred a silent and yet more impressive testimony respecting some features of our business life. There Is money everywhere in the United States and yet the railroad companies are unable to find any fresh capital. An. exception should be made to