New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-16

declined to about the theoretical I'M
port rate The statement OF the Local
Clearing House banks shows slight
decrease Of cash on hand SATURDAY
morning. with surplus reserve ABOUT
90 600 900 lower. Loans increased some
s17O00.OoO. against about S2'ooo'oVo
gain I'm deposits. Surplus reserve
stands AT near s3S. oO0, 600, sufficient to
insure continued monetary ease.
Money Still Plentiful Abroad
Money also remained plentiful In The
great centres Of Europe. The Bank of
England. though failing TO acquire
South African gold and though suffer
ing a loss i'm gold coin and bullion OF
about S1.O00Oo0, principally through
export TO India and the Continent
made a slight increase in its percent
age Of reserve to liabilities. The Bank
Of France is steadily adding to its gold
holdings from this country and else
where. It's statement last week showed
an increase Of over 23,OOo,Ooo francs.
coupled with decrease Of 1SoOo,oD
francs in circulation. The Bank OF
Germany reports lower figures for
loans and discounts and an increase n
gold of 100000 marks. In this
country the call OF the Controller OF the
Currency showed the banks OF the ma
ton with higher percentage OF re-
serve that should put them in favor
able position for the start of the new
federal reserve system.
Plans for corporation financing
through long term issues are being
made more freely following more "a
vorable conditions for such fotations
first manifested in Europe. The South
ern Pacifc's issue Of So, 0OoOoO D per
cent. twenty-year debentures convert
BILE at par, has been oversubscribed.
The American Agricultural Chemicals
81. 100000 . per cents have all been
sold. The st. Paul and Grand Trunk
have received legislative authority for
future issues. Bond issues are also be-
ing considered by the Chesapeake g.
Ohio, Baltimore & Ohio and Erie. High
grade bonds continued in fairly good
demand on the Stock Exchange. Sales
for the five days Of the week totallcd
about SlS,O0O,OO0 at generally good
prices, though some Of the more spec
ulative issues showed a tendency to
follow the reactionary course of stocks.
Unsystematic Federal Spending.
In the mean time Congress continues
TO advance measures for increased APP
preparation. For example. good
roads measure passed by the House.
but expected to be killed in the Sen
ate, would authorize the Secretary of
Agriculture 10 eXpend up 70 $4,000
600 in cooperating with the states in
maintaining rural post roads. The
rivers and harbors bill is expected TO
carry about $40 100000. Zach extern
sion Of government regulation adds its
quota of expense. The physical valua-
ton of the railroads by the Interstate
Commerce Commission will, 1t is esti-
mated, cost about S1200O.0OO in the
five or six years necessary for the
work.
Federal expenditure is for the most
part without system and more or less
at the mercy of the political necessities
of the individual legislators. With
great new source of revenue open
through the income tax, the present
authorities at Washington are ap-
parently disregardlng the detail of
economy in pursuing somewhat alb
stract principles Of social justice.
With no limit 10 the rate Of taxation
on incomes. considerable apprehension
is already being felt as to how far the
increased cost OF the national govern
ment may further burden those who
directly and indirectly meet the>already
heavy burden Of taxation.
President Taft urged with no success
the preparation Of national budget TO
apportion appropriations and have
some restraining influence on the total
expended. Many Of the great corpora
tons now under government scrutiny
could provide useful lessons in con-
servatlve finance to the federal author