Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-12-02
Commodities Wanted.

Commodities Wanted.
The National City Bank circular for
December, referring to Englands $780,
oo0,ooo.oo0 usually invested abroad, has
this to say:
''On the face of the situation 1t looks
as though an extensive shifting of Sc
curities and of gold would have to &C.
cur. But under all such disturbing con-
ditions the business world tends to find
Its equilibrium, and usually comes
| nearer doing SO than appears possible
| on the first view. There are factors
in this situation which do not imme-
diately appear. In the first place an
important part of these enormous ex-
penditures must be made in neutral
countries. and particularly the United
States; and even where the expendi-
lures are not directly made abroad they
will affect foreign trade in a way tend
| ing to restore the balance
| Again. gold is Of no use in carrying
1 on great war, except as means of
paying the bills. and 1t is not wanted
for that purpose at home. Gold is
| wanted for payments away from home
where nothing else will answer There
is always a scramble for gold in prep
| aratlon for war. but it would be some
thing new in the world for nations to
| in war.
They accumulate their boards in
peace and disburse them in war If
ENGLAND should prove to be an ex-
of her fixed income from Investments
abroad. but the other countries can
hardly avoid loeing gold, which, If it
does not come direct to the United
states. will go. at least in part. to
Is now. heavy buyer in the United
States and her purchases will increase.
for her large trade with Germany is
cut Off. Already the Imperial Bank
of Russia is making heavy shipments
Of gold to the Bank of England, some
$50.000.000 since the war began. and
the former still holds approximately
$75o.Ooo.Oo0; 1t is evident, therefore,
| that the Bank of England does NOT
have to rely upon the United States
to replenish its gold reserves. and
the United States does not necessarily
have to Hquidate its London debts with
gold. "'A
Moreover. there is a limit To the
amount Of gold that country can ad-
vantageously use in Its reserves Be
Sond reasonable proportion to liza
ointles. more is not worth having at
what IL costs; short-time interest bear
ing paper is likely to be preferred
Even now England is more Interested
in increasing her foreign trade than in
| increasing her gold reserves, which
nave reached an unprecedented amount
| II she can pay for the commodities
she must have with exports of her own
commodities. the latter will answer the
purpose of gold and give employment
10 her people besides. 1t may be ex
pected, therefore that the English GOV
eminent and bankers will co-onerate
to avoid any serious dislocation Of the
exchanges or other disturbance likely
| to AFFECT general trade"
Railroad Earnings.
Twenty-eight railroads for the third
week in November report gross earnings
| reduced by 1851 per cent The decrA GO
was $1,57o.545. Four railroads reportsd
decreases aggregating ss3,sOo, while TWEEN
ty-four reported decreases asgregatine
$1,634,345
Lehigh Valley for October. reporting to
showed an increase of $73,7S2 in operat
ing income. For the four months of the
fiscal year. operating income decrease
SGT. 955
Pennsylvania system for October lost
$780, 200 net in earnings. while the gross
earnings were $30,948.9 $50. compared with
$50. 66l. 749. The company was able to
save much between net and gross loss
by economies.
New York Central lines for October s,s
tanned a decrease in gross earnings of
81, $4,000. For ten months the gross
earnings of the entire system We're s24-
6s2, 300 less than they were for the same
period of 1913.
o. the twelve roads in the system, Pitts
burgh and Lake Erie. Chicago, Indiana
and Southern and Toledo and Ohio Cen
trail were the only ones showing increas-
es in gross.
Financial Gossip.
December 26 has been named as holi-
day in Maryland.
All flduciary bonds require a stamp tax:
also surety bonds of all descriptions
Controller Williams declares that re-
curling reserves on government deposits
is strictly in accordance with the letter
of the law.
Indications point to successful sale of
the $500. 900 Washington Gas IS.
A number of big bond houses have been
making inquiry.
On the Local Exchange.
Only two sales were made on the
session of the stock exchange. $1,000
each of Potomac Consolidated SIS, at
99A. and $1,000 Riggs Realty IS. long,
at 101.
Bids were well maintained. Gas IS
were held at 105. with 103& bid
The cali on bonds starts promptly
at 1910 pm. daily.