Bisbee daily review., 1914-11-04

When the money market began to be restless on account of political troubles German 4 per cent Treasury notes were quoted at 1OO.5O and 100. 40 and on the last day of the Stock Ex- change went to s923. our 4 per cent bonds being quoted that day at gS.4O. Their value has decreased somewhat, SO they may be estimated at 90 or S4 Compared with the present war loan there is a difference of 10 or, if dis counted to present value, of 8 per cent. in favor of the war loan. This would mean a Stock Exchange quo tation of lO2 to lO3, while they are offered at 975O.
 The interest on Treasury notes is 5.13 per cont But they are to be pad back at face value after an aver age Of five years. which raises the in- terest actuclly paid to 5:63 The in- tcrcst on the bonds at 5.13 per cent also. But after ten years the empire must either pay the face value of the bonds or continue them at 3 per cent, which iscrcases the interest to be realized to 5.3S for ten years
 Where the Money Came From
 There are many corporations. ad- ministrations of large estates. cap italists. etc. whose income is partly re-invested. Such income is earned during the war as in times of peace. but opportunity for investment is greatly decreased.
 people laid aside large sums in gold silver and notes believing 1t the only
 At the beginning Of the war many
 ay to protect themselvec against ali possibilities. It was to be expected that a lSrg par of these sums useless ly put asde without bearing interest would reappear when the period of over anxiety was past and opportuni- ty for safe investment offered
 German savings banks and similar institutions were holding at least 2O,- O00,OOO0 marks and they encouraged the depositors to invest in the loan They hold a large amount of first class securities and could easily af- ford to lend enough on them to en- able depositors to subschibe.
 One of the emergency bills passed by the ReicIstag provided for war loan banks under Government con- uol. These institutions lend money on first class securities and unper- fchab1a rra,.cboudiga u,k,. - . thorized to lend nancy on securities considered as first class by the Reichsbank up to 70 per cent Of the face value and on imperial notes and bonds up to 75 per cent They usual fly charge l-2 per cent interest. but only per cent for loans to be in- vested in war funds
 1t has been explained that fake subscriptions were excluded. As the Stock Exchange is closed, specuiators cannot sell their bonds immediately after receiving them. Every sub ] scriber is a bona hde note or bond holder. It was expected that about one billion of Treasury notes and one billion of bonds would be subscribed for. THs amount would have sui feed for present demands.
 There has been actually subscribed for 1,3OOOOO,OOO marks in Treasury notes and 9,lOO,OOO in odns. or in all 4AOO,OOo,000 marks ($1O56 ,OOO. .OOO)
 Enthusiastic Subscribers
 The German people were enthusias- tic and powerful enough to make uu at once nearly the full amount au. thorized by the Reichstag to cover war expenses lor "a long time to come Within three months they of fer the Government a larger sum than the indemnity paid by France after the war of 187O-71. the payment of which within thyee years taxed France to her utmost financial ability. There are enough so-called event ual subscriptions, that is subscrip- tions for either nots or bonds. SO that the full amount subscribed for can be accepted.