New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-05
~ of Confidence in
an Financial Policy
Causes Slump.
ur.yy LIQUIDATION
0t ~ NERVOUS BUYERS
=, 1hery Pats Depreciation
E'' :, Pentss in 1918 at More
- than s2OO,OOO'oOO'
cable 90 The Trsun,-l


ss,r,e in the government $ IMAM
S heavy liquidation by ner-
q. - and forced sales. Indus
s''' '- 60 most. especially in the
rs "a sections. Rio Tintos' Rus
-,ga,ha and e'e'trieais having
=. At hard ...s a., the latter
r.. 80 week and all foreign bonds
downward tendency
and Mexican banks relapsed'
,...,,-al Bank in particular she'd
: :, ere than 90 points.
- Thirty, recognized author.
eolucai economy published
z ..,,ye statistics yesterday con-
r,-o9ean government bonds
+,oi2 His tables show that the
-o-e than whole points IN
-,r,es in the course Of the year
!. ,sraneled in any similar period
=, ne last twenty years and eX-
-. decline I'm other government
corded during 1918, being
-. even than the depreciation Of
!. s,,rsrian funds The loss to hold
r,-snch rentes during 1913 IS
=, .orssersbly more than S@'o""'-
=. decline in quotations for cash
=. ,ss, less striking than in quota
-, o. the account. Nevertheless
!. sv,pdlins IN this direction has been
..,,,-,sv FOR many months past, and
:, ,uss,ioa 6 now being asked in
-. ,lsss o. industrial security IS II
-,s, rrudent for capitalists 10 III
:. o. heir portfolio" There was
-, activity in metallurgical shares
IN n, VIZ clouds burst in the Near
,,r and American steel and iron
,s an excellent market in Europe
snps,ition with German, British
n French industry.
n crisis Of 1901 weighed Chiefly on
-r,nrrrv. whereas the stagnation Of
NJ lsrrelv affected the metal trade.
r ne crisis is neither the result Of
reruation nor Of excessive pro-
sn in France hat the recent n
...s Industrial activity in Germany
las 10. baen warranted by the condi-
tar o the metallurgical market. Thus
Frz,os there has been no serious
~ls b prices in metal
Cope and tin have fallen away lit
u % little but lead has fully main
u-st ms ground. and zinc is beginning
% as There have been no cumber-
s-s speculative positions. moreover
sfress prices.
FAaieyeF excessive production has
lTed In Europe during these anX-
s months is laid 20 the account Of
f'm2ny through excessive metallurgi-
a enterprise. In that country the fall
rlcss was most marked. and as the
sTnsn meialurgical industry de-
fias largely on export this excess
'sghed throughout Europe. and even
Frsnce, notwithstanding the GUS
rs barriers. Speaking generally,
''aiurgical securities are not likely
Dtlo;ne a profitable form Of invest
ll' Il this country for some time.
= neri balance sheets, too viii show
-r'ain shrinkage in value.
2 he other hand armament, naval
Slaciion firms and other mechani-
Aclsirles have received continuous
IN and benefit by the low prices Of
reisliurgical products forming
~ iaw materials. For instance. the
-.A'iffs de Ia Loire received orders
~ 1913 amounting 10 100000.
~ non and steel industries are
-'9 favored both by orders and by
Eices OF the raw material.
~ siaekening Of activity in Europe
-'ass with falling of in the
"a slate where among other big
0'@ me Steel Trust admits a re-
,'a q some 10000 tons.
mining enterprises have given
" 'nu even coal shares have fol-
" e0s lead but much more slowly.
'e"osfade movement has thus
s'neraL Securities Of fixed rev.
"'"e'er' show an inclination 10
"a little life to the financial mar
-. government funds seem likely
X. we Precursors OF the next rally.
u 'he banks which place on the
/ We these securities. al q high rate
- ~ themselves. are to-day the
80. buy Therefore. speculation
s advantage beforehand Of the
~ mat may accrue when capltal-
t''A unite their purse strings.
J. IOas and all other shares Of fairly
81 ''l'ns such as gas and cleo
- are receiving attention for
nave fallen without sufficient rea-
oner good opportunities for
- On account Of low prices as
| : q their security.
- american securities are likely
t,. oy rise as soon as the
.s crisis in France is past. after
~ = 'e'"ef group Of shares is des-
~ regain It's whilom popularity
s.u',. Is composed OF the various
ss,o s'oeks and Industrial shares
a., - The fan in Russians was
a. 70 decline in the industrial
!. .o'. IN the empire. but 10 w y, d
l. ,.ss ''0i's The excellent crops OF
as -. and enormous state orders
;is,s,.'-' 70 The pesslmists. Not
al