The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-09-10
Business and Finance

bumper crops that are to be sold
abroad at war prices. We have taken
back from Europe an enormous vol
ume of American securities, and it will
require severe pressure on the part of
the governments of Great Britain and
France to force their own investors to
sell additional quantities. We have
more gold than we need, and the allied
governments apparently are determin-
ed to send us much more. All these
conditions are such as under anything
like normal times would make for
strength and activity in our markets.
New York City Redeems Large Bond
Issue.
New York City on Wednesday of
this week called in and redeemed $751;
100000 worth of one-year per cent
corporate stock, issued on September
|, 1914. This is the largest redemption
of city securities held by the public
ever undertaken by any municipal ad-
ministration in America. The $751;
100000 is part of the $100,000,000 one
year loan raised by the city to meet
maturing Indebtedness, much of which
was held abroad and payable in gold
The European war had disrupted the
international financial machinery. Ex-
change on London and Paris had
scared, and European investors were
calling for American gold in exchange
tor American securities, among the
latter being the New York City's ma
turing obligations. The bankers had
the gold, the city had to buy it to pay
its debts, and the city had to pay the
price. The city has been paying 4 to
| AZ per cent interest, but raise $780,
100000, with all Europe at war, it had
to pay 6 per cent to a bankers syndi-
cate.
While more or less criticism was
levelled at the city authorities for this
apparently excessive interest rate,
banking experts were unanimous in
their opinion that the city had made a
fair bargain, since the terms of the
contract obligated the underwriting
bankers to provide exchange or gold
for meeting the London maturities,
whereas sterling exchange was then
ruling around S., and the apprehen-
sion still existed that sales of our Sc
curities by Europe would drain the
American market of all its gold.
August Financing Double Last Years
New capital issues consisting of
bonds, short-term notes and stocks an
nounced last month by railroad and
industrial corporations in the United
States indicated total of $68,480,0O0
according to the Journal of Commerce
compilation. This compares with $780,
H. 500 in August, 1914 which was one
of the smallest monthly totals on re-
cord growing out of the unsettlement
in the general situation incident to the
outbreak of the war.
Since January the output has
reached 1901 ,73S,600. This is more
than $300,00O,000 below the amount is
sued during the first eight months oil
1914. These totals, as customary
embrace large sums employed to pay
off maturing obligations and to refund
different issues. To illustrate this
point, maturities next month will
amount to $5l,973,33O.
During the past month the railroads
announced $37951,00O in new capita
issues as against $15,921,000 a year
ago. The industrial total was $50.
$4,000, as against $14,196,500.
The following table Classics the
months financing (actual issues anC
gives comparisons with a year ago:
RAILROADS.
Bonds -. $25,0l6,0OO $13,O21.O 900
Change ............ plus $11 ,oo5,00C
Notes =. l2,935,000 100000
Change .......... plus $l0,035,0 OC
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