New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-19

cais" be maintained as a desirable in
vestment and our railroads furnish
the bulk OF corporate securities held
abroad. II they cannot make fair rev.
enues they must omit dividends and
cannot pay the high rates for new
funds constantly needed. Between now
and the end of 1915 some S500,000,000
in railroad loans mature. At best 1t
will not be easy 20 rehnance them.
With constantly diminishing net reve-
nues many roads may find the task
impossible.
Reform Giving Way TO Relief.
There is. though, good reason to hope
that the relief asked will be granted.
The new evidence presented and the
changed conditions brought about by
the European conflict should make it
possible for the commission TO hand
down different decision without APP
pearing to reverse itself. A better feel
ing toward business has appeared in
Washington. More has been heard Of
relief than Of reform. It is being ap-
preciated that those engaged in CON
Quoting the nations industries are TO
be encouraged.
After all, the owners of the great
who hold securities directly or through
their deposits in savings banks and
investments in insurance. The savings
banks will not be represented at the
hearing in Washington. They avoid
even the admission that their invest
ments are being weakened, for the
credit of such institutions is easily
disturbed. Investment bankers have
named a strong committee that can
speak for them and explain that many
states allow savings banks to purchase
bonds only of roads with records of
continuous dividend payment and that,
II dividends are omitted, bonds must
be sold at a sacrifice.
Plan for Cotton Pool Modified.
An encouraging development Of last
week was the modification of the pro-
posed bankers fund for cotton relief
so as TO make il acceptable TO finan-
ciers here. If it is successful merely
in Withholding millions of bales from
the market, to menace the financial
success Of future crops, the difficulty
will have only been postponed. That
danger, however, it has seemed neccs-
sary TO incur. The plan for private
financing appeared desirable m con-
trast with unsound schemes for lend
ing the credit of the nation TO owners
of cotton and basing its money on the
staple at an inflated valuation. SO far
as possible, it is hoped that the cotton
pool will aid in moving the crop to the
hands OF the spinnvrs. At present,
though lower exports would naturally
work for reduced prices to our mills
and new markets for their cloths, buy
-. Of
notions of the effect of possible fed
eral aid.
Much was hoped from the visit OF
representatives of the British Treas
ury. England's lowered purchases OF
our cotton have hindered the restora-
tion of normal foreign exchange rela-
tons with London, and some arrange
ment for taking cotton for British
spinners may help dispose of part Of
cur surplus and bring down the price
of demand sterling as well.
Already the London Stock Exchange
has given sign of its good will in hold
ing our securities to the closing prices
of July 80. at which they are pegged
here. AS international bankers insist
that il would be folly to open our mar
ket alone for the benefit Of European
sellers, some plan for simultaneous re-
opening with London may be expect
ed. Great Britain is facing the prob
ability of long war and preparing for
resumption of security trading during
hostilities. The Bank of England, with
a gain last week of nearly e2,500,OOO
in gold, loans reduced a4000,000 and
reserves at over &c per cent, appears to
be attaining a good position where 1t
can meet any reasonable requireme nts.
Outside financial institutions are &C
cumulating large amounts of idle
funds, such deposits with tie bank in
creasing over ei,500,000 last week
Easier Money Rates Here.
Here the week saw curb trading in
stocks selling at not over $40 a share
privately resumed, and guaranteed
stocks, like listed bonds, were allowed
to be dealt in under supervision at
prices below those of the last day the
exchange was open. The money mar
ket gave sign Of increasing ease IN
public offers of funds for time loans
on Stock Exchange collateral and Oh
call at per cent.
Clearing House institutions here, in
their statement Of average conditions,
published on Saturday, showed the
deficit reduced to under 100000.
Though nearly SS,000,O00 i'll gold was
sent to Canada during the week, the
gain in cash was over S6,OOO,OOO but
loans. which had shrunk S6,00O,O00 the
week before. were less than $4,000 OCO
lower, so the decrease in the deficit
was under S7,000,O00, not quite enough
10 bring back the proper legal reserve.