Bisbee daily review., 1914-02-08

ately on large scale.
 The situation clearly was approach ing a crisis. All of those people who do things in this country were wor- ried Investors who were buying gilt the future that they felt they were speculating. The lack of confidence was not con fined to Americans. Our securitios were losing their standing abroad. At the annual meeting of London corporation whose public service ops erations are conducted on this side of the Atlantic, a stockholder matte the following statement recently and "I think it should be brought home to the people on the other side that if the agitations which have begun in that country. and which hayo been going on for some time, should at all . materialize the flow of capital from this country will soon be entirely , stepped. We would rather keep our money in the banks and recslNc the [ bank rate of interest" The foregoing Incident occurred | prior to the date on which President Wilson read his trust message, His statements will go a long way toward restoring the confidence of foreign 'n- lvestors in American securities.
 The Business Situation
 Reports from all over the country to show marked improvement and the lrcNiyal promises to be almost as rarld as was the recent declins.
 The iron and steel business is notably better All of the mills ere receiving new orders, and he pros pect now is that very sooi volu ne of business will be done in l9ii
 President Wilson's declaration that "the prosperity Of the railroads and the prosperity of the country ara .n- separably connected" Is of he most vital importance. If the government fully recognizes this fact a way will be found to finance the immense ie- qusrcmerts of the railroads in me matter of new equipment and n! creased terminal facilities, and tu" expendi. tres in this connection aore will furnisn the basis of splendid erncrui business conditions tn. ugh out this country for at least two or three years to come.
 Money and Investments
 Money is in good suas'y aid l. ac. ic1 rlai'a rapidly. Rt--s drc declin. .,s. Csll money loans f;' sly in Boz ton at 8 per cent and in Ncv York lat per cent Time loans tor short dates are being made at as low as 1912 per cent and the year money brings 3I per cent
 Boston and New York banks are flush for the first time in months. The money released from crop p-moy- in gcommitments has been riliD3 up af New York and a portion of the treasury in the south and west is also finding fits way into the eastern ro serve centers. So far there has baen ln1 particular increase in the riercan- tile demand.
 France is takingadvantage of this condition to build up it's gold supply Already about Si,O00,000 of gold has been shipped to Paris and bankers expect the movement will continue luniil the total reaches about si0,000' 900.
 The operation is not profitable one for France at the present level of exchange. since interest allowance has to be made on the metal in tran sit, but this is not deterring her bankers from drawing on our supply
 Under the old currency system inc gold supply of the United States has always been at the mercy of fore,sr countries, and the new measure doesn't provide against any such ac ton as that now being taken by France.
 At the same time a large supply oi the money metal on hand at all times will be more than ever necessary un der th7 new federal reserve system with its wide scope of operations.
 To assure such condition the new federal reserve board will probably have to take arbitrary action in put ting a high premium on gold. as ii done today by the large European banks.
 The investment market developed strength and breadth this week. Mor' bonds were sold on the New Yorl stock exchange of Wednesday thaI in any single day fortwo years.
 The significance of this outburst i more than seasonal It was an indi cation of asolid position established by last years liquidation operate' upon by the current relaxation in th' money market.
 It could easily be justified by tn rapid cheapening of credits and thu accommodating supply of cash result - ing from the cumulative effect of tn lliquidations in 1913.
 'o New York States s5l ,000,O00 O ry 4l-2 per cent bonds were oyersut Ie- scribed eight times and probably vii he be awarded at a price half a poin ie. above what was originally expected ye, This Is amost encouraging symptom ss- It is important to note improve of ment in the monetary situation | lis Europe as Is evidenced by the redu, he ton in the Bank of England discoun m. rate of per cent this week, and | {. the Bank of Germany from 3 pc )n- cent to l-2 per cent. This bank rat ht- is splendid weather yane of worlt .l