Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-01-03
fBv Iates al!

- NEW sYORK--Chief among the un-
settling influences have been the I'M
satisfactorily financial conditions
abroad and further evidences Of de-
pressing political activities at home.
At Paris the situation appeared some
what alarming owing TO troubles IN
French Abankfng circles which have
their origin in too heavy loans on
account of the Balkan war. IL was
hoped that these would be satisfac-
torily adjusted, but failure to place
the big $260,000, 900 French loan and
and the socialistic complexion of the
French Cabinet appear to have
brought on fresh crisis, so the mo-
notary situation at Paris is described
as being In a state Of chaos. The
effect Of this condition will be felt
in London, and may have an indirect
influence upon New York. Forum
ately, the Bank of France is in a
strong position, its stock OF gold be.
ing much larger than year ago.
The Bank of England is also exceed
ingly strong, the proportion of reserve
reaching the exceptionally high figure
of 55s1 per cent, the highest since
1909, when it was 54.3 per cent Brit
ish Consols sold down to I'll 9-16, said
to be the lowest price in ninety years.
This is simply another illustration Of
strained conditions in the internation-
al capitais markets. The demand for
new capital continues so insistent
and conditions so unsatisfactory that
new issues can only be placed at ex.
orbitant rates. An undesirable fea-
ture in the London market was the
weakness in Canadian issues, of
which London has recently had a
heavy overdose. For some time past
the opinion has prevailed that Canada
had been borrowing too freely; and
the proposed issue of $50 100000 Ca
madam Pacific notes was not Tabor.
ably received, as reflected in the re-
cent decline in the shares of that
company The collapse in New Ha-
ven has also left a bad impression
upon the market. although the dispo-
sition is now to look more favorably
upon the future of that security. The
company has new and efficient man
agement; its policy has radically
changed, and there is a welcome dis
position on part of the public to give
this immensely valuable. property q
fair chance to work ont its own re-
demption. 3
General business continues quiet as
Is usual in the closing weeks of the
year. This tendency is aggravated by
a general lack of confidence, arising
largely from disturbed political con.
dftions. Nothing has done more to
bring on the present state of semi.
paralysis than the political attitude
toward business in general. Because
OF the glazing misdeeds of few cap.
tains of industry some of our politi
cal leaders have jumped to the fool.
ish conclusion that private manage
ment of corporate enterprise has fail
ed and that only government man
agement can succeed. No greater fall
lacy can be imagined. Nevertheless
our railroad credit has been seriously
weakened by the attitude of the In
terstater Commerce Commission, ant
the great Industries dependent upor
railroad patronage have been serious
ly crippled by inability of the rail
roads to expand their facilities. The
securities of all express companies
have suffered a tremendous shrinkagt
through the Introduction of. the par
Gel post, and now comes a movement
for the government to take over thu