Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-01-25

is Jne answer.
The subscriptions of nearly
$300,000,000 for New York
State s, $51 100000 AZ per cent
bond offering take on a new in
terest when viewed in this light,
do they not?
My reading of the situation still is
that security quotations are likely to
advance, intermittently, of course
but that a good deal OF commercial
wreckage remains to be cleared away
before 24-carat prosperity can be en-
Joyed.
Fortunately, President Wilson has
sought to allay nervousness and
to encourage capital to go ahead along
legitimate lines. His latest message
evoked little but elogies.
Iron Hand Under Glove.
But capital, let me confide, does not
for an instant imagine that nothing
but smooth waters lie ahead. Be
Meath the velvet glove capital can dis
Germ a Presidential iron fist. BY and
bye the public will also see it.
Therefore, caution Is still the key
note. although various incidents of an
encoura ging nature have tended to
modify the pessimism that has hereto
fore prevailed.
Much of the improvement in securi-
ties has been based less upon easy
money than upon confidence that the
Interstate Commerce Commission will
grant the Eastern railroads moder-
ate increase in freight rates-at least
half of the 5 per cent asked. Were
this expectation blasted, even l per
cent call money and 3 per cent time
money would not prevent serious
relapse and wholesale liquidation of
American securities by foreign hold
ers
! mention this to indicate that the
recovery is susceptible to reversal
should anything untoward uneXpect-
edly happen.
My own belief is, as it has always
been, that the granting of small In
crease in railroad rates would have
Calculable effect upon investments
and upon sentiment abroad and at
home, AMI that the commission would
doubtless find that the railroads need
ed succor / do not for moment
believe that the application will be
summarily refused.
| hear that Investigations already
made by the commission into the
profits bankers have derived from
railroad financing have uncovered less
than was popularity suspected.
Morgans to Report.
] p Morgan & Co, l understand,
will submit a tabulated report show
ing that the percentage of commits
sion paid them for New Haven financ-
ing was unbelievably small
Speyer & Co, | also learn. are like
ly to be given a clean bill for their
dealings with the St. Louis and San
Francisco system. The Interstate
Commerce Commissions report on the
collapse of this road is ready, and will
disclose unsavory facts and figures
concerning the finn tanning in
dulged in by the Yoakum contingent
There may be a sensational sequel
Wall street has been exercised over
rumors that the National City Bank,
| the largest in the country and the pet
enemy of Secretary McAdoo and
Comptroller Williams, would amalga-
mate with the Corn Exchange Bank,
| the principal State bank, whose char
ter is extremely broad. Many bank
ers would like to see established one
! l'uSG INDEPENDENT bailN VI Nheii dNACl
| and caliber that would command re-
! spect and confidence in foreign CEN
| tiers.
But am assured from what ought
to be official sources that the City
! Bank plans no such institution but
will join the Federal reserve system
! this week.
| do know, however, that this bank
as well as certain others would
have preferred to know the personnel
Of the Federal Reserve Board before
| throwing in their lot with the sys-
! tenn seeing that the central board has
almost unlimited powers
Stocks Doing Well.
or stocks il should be said that the
! advance has already been substantial,
and rapid. More hesitancy may be
| manifested temporarily, although gilt
| edged issues are still unusually cheap.
/ and can not but be regarded as at
/ tractive for outright purchase
TIL best grade Of bonds should con-
/ tinue their upward movement under
the stimulus of extraordinarily cheap
1 money and in the absence Of enthu-
! siasm for new ventures on the part OF
! intluenttI interests.
Third-rate stuff should be left Sc
| verely alone by those who speculate
on thin margins. The situation is not
| quite solid enough TO make that kind
| Of gambling safe