The Washington herald., 1914-08-27
DRUG MARKET
PRICES ADVANCE
May Take Years to Restore
Chemical Trade to Normal
Conditions.
DEBT OF NEW YORK CITY
Financiers Seeking Way to Meet Fall
European Demands-Senti-
ment for Railroads.

War in Europe has hit the drug and
chemical markets Of America knockout
blow from which they may not be able
10 recover for years General advances
averaging about 100 per cent have been
named on practically all drugs and
pharmaceutical chemicals In a period Of
about three weeks. In some instances
advances Of as much as 5000 per cent
have occurred.
The basis for the general advances Is
found In the fact that the majority Of
drug and medicinal preparations which
/ are used in this country are either manu-
featured or grown in Europe or other Far
Eastern countries. and with the cessation
Of practically all shipping these products
are no longer available on this side or
the water.
| Even II shipping facilities are resumed
within the near future, according 20 au-
thorities in the trade. the situation can
not be remedied for planters and grow
ers Of drugs have allowed their plants
to rot and decay. due TO the shortage
OF labor.
In London the large drug concerns
| which distribute more than 70 per cent of
the worlds supply are unable to care
| for the wants Of wholesalers who are
facing the prospect Of going out of bust
ness Their supplies Of a great many
articles have already been sold out, and
II the various articles from retail drug
stores continues as keen as IL has for
the past three or four weeks their shelves
will be swept bare.
! Never In the history of the drug mar
ket has the retailer been up against a
situation like the present
Baltimore and Ohio Report Bad.
| An analysis of the July report Of the
Baltimore and Ohio Railroad makes it
even worse than is actually indicated by
! the bald statement. II is assumed that
1t fairly represents what other great
roads will report
There has not been an increase in the
volume OF trafic; the expenses have not
! decreased
| That relief will have to be brought
about seems undeniable. Already there
are signs that the sentiment is spreading
that some action must be taken. Thus
recently a letter was sent broadcast by
]. 8. Bache & Co. urging that all who
received It petition their respective rep
resentatives in Congress to pass a reso-
luton requesting the Interstate Com
merce Commission to revise the recent
rate decision handed down by that body.
SO that the roads win be granted the
right to raise their freight tariffs.
On top Of this are TO be read state
4
Marquette have asked the courts to
allow them TO raise rates; that the Texas
! railroad commission will be asked TO per-
NIT increased rates to be charged. These
! would seem TO be straws which indicate
that there may be a widespread action
OF some kind taken for relief for the
roads.
Protection for OIL.
IF there is to be any valorization of
the government to assist people to hold
their cotton. why should not the same
be extended to oil? BY reason OF our ex-
ports being cut off. many producers Of oil
are unable to sell their oil to the re-
fineries. An oil man made this comment
yesterday:
He continued While our cotton ex-
ports are $50. Oon.0Oo per annUm, our oil
/ exports are $4,000 900 per annum. and
these together represent 70 per cent OF the
exports affected by the war. Meat and
breadstuffs make up the other quarter
OF the American exports affected by the
war.
IF we are to have government assist
ance for our foodstuffs exports, and TO
hold cotton, is oil TO have no considera-
ton by the government?
The oil interests are more entitled to
consideration than either wheat or cot
ton. for a larger proportion OF the oil
tTaue Is dependent upon exports Jldn
any branch OF the meat or breadstuffs
exports. and cotton is a matter that can
be individually handled by the producer
and his banker. but the producer OF oil
is absolutely stranded. His expenses
continue. He must pump, or water will
flow into his wells. He cannot store and
he cannot SELL
New York CIty's Debt.
The matter OF providing a way for New
York City to meet its obligations OF S2.-
co., 600, which mature in France and Eng
land between September ! and the mid
die OF January, without making further
shipments of gold to Europe is problem
that is still unsolved by the bankers.
Daily conferences are being held, but the
bankers attending those meetings report
that nothing definite has been decided
upon as yet
The plan OF making a 500 900 loan
to the city Is still being considered. but
bankers say that under the existing con- |
ditions 1t will require considerable pa
triotism to put up that amount Of money |
at the present time. II Is admitted that
gold shipments in small amount may |
have TO be made, but fnanciers are firm |
in their determination that there shall |
be no resumption Of the heavy outflow
OF gold, which took place previous to the |
closing of the stock exchange.
Opening Of the cotton exchange to trade |
in new contracts only Is suggested as a
plan for resuming business on the part |
Of the New York exchange by H. ii. |
Peers the cotton specialist.
According to this idea contracts which |
meet all the requirements Of the Smith /
Lever act must stand by themselves and |
may be traded IN as entirely apart from |
contracts on the old basis.
In this way" says Mr.. Peers. normal
trading would soon be established with
ont any unusual financial risk, and as /