Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-03-29


new federal reserve system is engaging
particular attention. All these problems
are pressing for solution. and it is hardly
to be expected that business will resume
its normal course until they are forever
removed from the scene.
Popular to Attack Business.
1t has become increasingly popular for
our so-caled legislators, who are sent
to Washington for a far different pur-
pose, to expend much of their time and
energy in indiscriminate attacks upon the
larger business organizations of the
country. 1t is not always necessary that
any logical basis for these attacks shall
exist; the theory being that to be sue
cessful they must naturally be criminal.
In this manner many of the splendid
business organizations have been harass-
ed and hampered, resulting not only in ir-
reparable injury to them, but in financial
loss to many hundreds of dependent en-
ployes and security holders. 1t is often
forgotten that in gathering together the
necessary capital for the organization of
a large enterprise the savings of a large
number of the common people, in the
form of investments in stocks and bonds,
are no mean portion of the total capital.
Therefore should our politicians remem-
Der that in their mercileSS assaults upon
corporations. railroads and big indus
trials they are not always expanding their
wrath upon the rich and prosperous, but
that in thousands of cases the small
savings of thrifty investors, who have
nothing to say in the management, are
ruthlessly sacrificed.
Then, again, the savings deposits of the
people held in our state and national
financial institutions are to a large ex-
tent invested in corporate securities. and
the success of these Investments will de-
termine to a large extent the amount of
income returned TO the people from these
sources According the latest infor-
nation from the office of the controller
of the currency, there are nearly $1,000,
100000 of savings deposits in the various
American financial institutions, to say
nothing of the indirect savings represent
ed by life insurance policies, the greater
portion of which is also invested in Inu
nicipal and corporate securities. A
proper conception of the financial interest
of the most humble and modest depositor
should go a long way in securing square
treatment for our business organizations.
Stocks, Money and Investments.
AS q general rule the position of the
security and investment markets is large
ly dependent upon the course of general
trade and that in turn is governed by
the opportunities that are presented for
the expansion of business and commerce,
together with the spirit of enterprise that
prompts the taking advantage of these
opportunities. Enterprise at present be-
Ing somewhat held in control by the
handicaps enumerated above 1t is easy
to explain why the security markets have
been equally at a disadvantage. Notwith-
standing, 1t can be fairly said that in the
past few weeks the stock market i'm
proved in the face of uniformly unfavor-
able trade reports. Stocks have shown
daily improvement, which, coupled with
an evidence Of the return of the outside
investor to the market, has been more
or less stimulating to the trading in
speculative securities.
There is still evidence of a worldwide
abundance of money. and no concern has
been felt by the financial institutions
either in New York or in European CEN
tiers to their ability to take care of
the quarterly interest and dividend dis
| bursements without difficulty. The sur
plus reserve OF the New York clearing
house banks has been steadily increasing
at time of year when a contraction is
| more logical. After April l it is therefore
more than probable that a plethora of
funds will be awaiting profitable invest
| ment and much of this money will nat
urally be diverted into the investment
channels
Money in Ample Supply.
At the present writing money is in
York, and the same may be said of the
situation in London, Paris and Berlin
Talk of stringency to accompany the
April payments is not regarded seriously
this year, owing to the great abundance
Of funds available in the banks. Virtu-
ally all the crop money deposited last
fall In the national banks to facilitate
the moving of the 1913 crops has already
been returned to the Treasury. There
is no question, however, that the success
of the movement has been sufficiently
apparent that Secretary McAdoo will
repeat it should the crop demands in the
late summer and, early autumn show the
necessity of such action.
The Journal of Commerce computes
that in April a total of $1So0s1. 149 will
be paid out to American investors in the
| form of dividend and interest disburse-
ments. This is practically the same
amount as was paid out in April of last
year. OF this amount S75,SOO,OO is rep
resented by interest payments and s1o4,-
PSI, 149 by dividends. Bonds and note
issues of the leading railroad and in
dustrial corporations maturing in April
e..1S III,