Evening star., 1915-05-16
Highly Agitated Condition at
Present Due to Situa-
ton Abroad.
MONEY IN GOOD SUPPLY
AND DISCOUNT RATES LOW
Good Offerings for American Capt.
tal-Grain Crops Give Ex-
cellent Promise.
Special Correspondence Of The Star.

Special Correspondence Of The Star.
NEW YORK, May 15.-Those who
have been expressing the hope and
the opinion that the future course OF
American financial and security mar
kets would not be susceptible TO the
trend of events in the European pel-
ligerent territory have had ample rea-
SON for thoroughly revising their views
on this subject. 1t Is most unfortunate
that the buoyant market which. during
Anril and the first few days of May
established new records and gave every
evidence o. n return to normal condl-
tiors has been of such short duration.
But there are many VINO were coh
ytnced that the recuperatiVe powers Vi
the stock market. in spite Of the In
huences that now make for depression
will be amply sufficient to bring oroer
out of chaos, and to substitute lntrln-
sic worth for unguided sentiment az
the basis for stock values on our pre-
mier security market.
1t will not be denied, however. that
at the present time the stock market ls
in a highly agitated condition, ana no
course OF behavior coming from tnat
quarter need be considered as erratic
or abnormal The direful effects OF the
sinking of the Cunard liner Friday OF
last week had hardly been overcome :
when the rumor of the ASSASSINATION OF
President Wilson, in the early part OF
This week, completely demoralized NOT
only the stock market, but also the COY
ton and the grain markets as We'll Tne
monthly statement of the United states
steel Corporation Monday snowIns a9,o
tonnage seemed to be sufficient In it
self to cause depression In the So
called war stocks" and 1t IS curren!
opinion that this single influence would
have been sufficient to weaken the
whole market to the extent that it gave
way Monday. The fact ts that at TINS
time, when the stock market Is In such
a nervous and agitated condition, cir
cumstances which on ordinary occa.
sions would be hardly worth comment
may be productive of dire results. The
stock market is now risky PROPOSE
ton. and we should like to repeat the
advice given in last weeks review, as
follows:
Avoid "War Stocks"
While 1t is impossible to point out
any safe rule for investment In stocks.
for such Investments can never be
reckoned on as absolutely and perma-
nently safe, there are nevertheless q
rev fun0amental prlhclpAo1 tuoS oAo3Au
govern every such investment. wnetnef
il be large or small. Just at this time.
when only the mere rumor OF incoming
business Is sufficient to send up the
prices Of the so-called war stocks
from three to fifteen points IN single
session, 1t Is utter folly for the average
investor to place his money on such q
hazard. The most important consid-
Grafton 10 the position Of the stock
from the standpoint Of divfdends-not
and irre1ular r0Yaltiea. but
real and regular dividends as the non
est fruits Of protection.
Many of the country's standard div
idend- paying stocks are selling on
basis that will yield double the rate
Of savings bank interest. with an equal
degree Of safety With the present
prospects Of abundance and prosperity
and the steady Improvement IN domes-
standard dividend payers are the only
legitimate purchase in SO far as the
stock list is concerned.
The larger leaders of money have
been gratifed to note the number OF
high grade security offerings which on
the whole have been freely absorbed
by American investors. Among those
We may note the S40.000,000 Baltimore
and Ohio note issue. which was over
subscribed within two hours after the
opening Of the subscription lists: the
sl0O ,000. 900 New York Central convert
ible debentures which were absorbed
with unusual rapidity: the $65.000.000
general mortgage bonds OF the Penn
Ave-year per cent bonds Of the Ar
gentine Republic. which were onered
here in connection with a similar dis
tribution In London.
Notwithstanding these extraordinary
demands for funds. there Is nevertheless
an excessive supply of money in all the
leading financial centers. and the chief
problem of the banking institutions Is not
that of securing deposits, but OF loaning
their funds to advantage. 1t Is not ex-
pected. moreover. that the money situa-
ton will show any tendency to tighten
until there is a tangible evidence OF the
cessation of hostilities In Europe The re-
funding of the obligations of the belliger-
ents will then bring forth a large quantity
Of new issues of foreign securities. and
on such attractive terms that they will
readily appeal to holders of American
capital.
Crops and Business.
The wheat crop improved IL points dur
ing April. whereas the ten-year average
shows a decline during April Of q points
the Department Of Agriculture announced
this week The condition May /. namely
when 1t was 95.9. The condition is above
since 1901. with the exception Of last year
the average in every state except
the group Of states on the Atlantic
coast from New Jersey to Mississippi and
including the interior states OF Pennsylva-
MIA. West Virginia and Kentucky, wherein
the season has been too dry Some reports
Of the presence OF the chinch bug and Hes
sian fly are made from Ohio to Oklahoma
but such complaints are less than usual
and are scattering. The amount OF wheat
abandoned, 81 per cent of the planted
area. is>a smaller percentage Of abandon.
ment than any year since 1900: the ten.
year average percentage of abandonment,
s about S.5 per cent OF the planted acre
age. The amount OF wheat under this con
dition. namely. sS3. 900. 900 bushels, is l.;
per cent more than tho record crop OF las,
year. 1913 per cent more than the cror
OF two years ago and 40 per cent more
than the average of the past Ave years
II is rather early to estimate the effec
on general business of the horrible disas
ter which resulted in the death of lO(
american citizens but public opinion viii
ultimately decide that nothing could b.
lained by going to war with Germany anc
II Ia safe TO conclude that under no cir
cumstances can there be a repetition O.
such an unthinkable catastrophe. tn,
President may be sharply criticised II
some quarters for the deliberate manne,
In which he has represented the INTEREST,"
OF the American nation in this critica
period. but there will be few men OF sount
business sense that will sympathize witt
these criticisms. While the attempts :,
justify this useless sacrifice of the live,
of innocent and helpless people are TOO re-.
pulsive and horrifyins to merit considera
ton, IL Is also true that we can deman,
and receive repGration by peaceful meth
DDS and without the sacrifice of our ma
tional dignity.
II is reported that specification
against contracts for steel product
placed both domestic and Forat.~,