Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-05-20
Passing Impressions Of Finance


Even though the superstructure OF
our financial system may appear at
times somewhat wobbly. Enthusiastically
the foundation is entrenched within
imperishable cement for one scandal
Following swiftly on the feet OF an
other has had no effect on the under
lying confidence which American inves-
tors repose in good securities. Only a
few days ago and on the very heels OF
some sordid testimony given by Chas
politicians for franchise favors for the
|Westchester branch of the New Haven,
the Baltimore and Ohio Railroad offered
an issue of $35, 900, 900 short term notes
and they weer all taken within a few
hours of the opening of the books for
subscription.
This incident is viewed by conserva-
tive bankers as extremely significant
in so far as 1t prejudges the existence
or latent investment demand which
upon clearing. away of some of our
temporary complexities. These for the
time being hold confidence in check
and an inherent desire to progress. 1t
Is not improbable that the settlemenl
or the much discussed rate question
will unleash this investment demand.
Again, the elimination of the Mexican
| trouble may help bring about this most
desired revival. which is so devoutly
wished for by bankers, manufacture
ers and all tradesmen.
/ OF the existence of an ample supply
OF capital that Is ready to seek re-em-
ployment on the least encouragement,
| there can be no doubt. The swelling
reserves in the banks are confrmatory
of this fact. Much of the capital is
even now forced to emerge from its re-
treat. because it cannot remain idle
and banks are not paying generous in
terest to keep it in their vaults. With
| time interest rates as low as 2h per
cent. and then lendable only in small
amounts at that figure, it is not re-
| markable that the Baltimore and Ohio
| for one year on AZ per cent notes.
| me better income from investment in
such notes is too inviting to bankers
and large investors for them to resist.
since there are no immediate prospects
that interest rates will advance ma
| terially.
While this condition prevails we can
confidently anticipate a continuation OF
a good market for short term loans by
corporations whose credit standing in
the nnanc1al community is of the high
est. But to the investment bankers an
upift in the demand for longer term
n0nd issues would be more welcome
Inc margin of profit in short-te OBJ
| Ilgations is so slight it scarcely pays
Tor the trouble to engage in their sale
on a large scale. However, the popu-
larity OF these temporary loans fore
on and when the nation forgets the
ague, fits and chills from which it is
now suffering.
An interested audience has taken
seats In the public amphitheater and
mas settled itself down to wait with
bated breath the further revelations
regarding the operations of High Fin
ance with the money of the New Ha-
ven stockholders as is promised this
coming week by Mr. Melien The for.
mer president of the road certainly has
gone TO raising goats as he promised
when he retired from office, but tht
goats are not the kind we are accus.
TONED TO see grazing on tin can.
around the shacks of squatters but
they belong to the human family. A.
II looks now, the New Haven will
When IL is ended, put leopard spot
aplenty on the garments of some O
so-called eminent" financiers.
While the story relates to past do
lngs, there is some fear in railroad cir
cies that 1t may have some effect upoI
the interstate Commerce Commission