Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-03-05
ENGLAND MAY ARRANGE
A BIG new YORK CREDIT
This Step May Be Necessary to Pro
tect Large Sterling Exchange
Supply.
Trade Balance for United States in
1915 Estimated at 81, OOO, OOO,-
OOO-Financial Matters.
BY I. A. FLEMING.

Financial interests are watching the
foreign exchange situation with great
interest. as they recognize that the
Bank of England must soon take inn
portanr action for preserving It's stock
of gold The trade balance in favor
of the United States is mounting by
degrees that can readily be counted on
to bring the record at the end of the
year, if purchases for foreign account
continue as they have. to nearly one
billion dollars.
For December. January and Febru-
ary the trade balance was about
s400.000.O0O. and with the possibility of
s100.000.OOO a month additional, the
estimate for the calendar year may
even be exceeded.
Imports are likely to continue very
light during 1916. Travel abroad will
he very limited. and the millions usual
~ scattered throughout Europe Will
ne missing. the impossibility of i'm
uorting raw material and manufac-
.ured goods from some of the European
states is sure to continue to make Tor
larger trade balance in favor OF the
United States.
The transfer of funds to the other
side will be restricted, and the postal
transfers. which have totaled up to
s15.000.0O0 in other years. Will be re.
-luced by the large unemployment OF
labor and other causes.
II is within the probabilities that
English bankers will make arrange
nents for a large credit with New
York financiers and in this way give
-ase to the pressing exchange sltua-
lion.
The Bank of England will not let its
gold go out, and it is even suggested
hat as a necessary fnality it might
wen suspend specie payment our big
.redit balance is not all chargeable to
England. but is distributed. with Great
Britain the chief debtor.
Persistent demands are being made
or gold by the United States. and the
Probabilities, as stated before, favor
he establishment of large British
:redit in New York within few days,
when plans which are said to be under
lay have been completed.
Liquidation of securities from abroad
III the New York market is not press
ag to any considerable extent. al
hough there is a steady "dribbling'
cling movement accredited to foreign
-olders.
Bonds in Demand.
There was an excellent inquiry for
onds at the daily session of the
tashing.on Stock Exchange. Gas IS
ere the favorites, but with a slight
ecession in the price, from 104h, the
oening, to 104A, the closing. A small
ond of the Capital Traction Company
Did at 1858. Potomac Electric con-
olidated IS are pegged around 99h,
acre having been but little variation
ON this price for weeks. Chesapeake
nd Potomac Telephone IS were 1881
Washington Gas showed in the sales
1t of stocks with quotation lots at
"a and 1875. all other stocks being
.ntirely nominal, but reasonably firm.
Treasury Statistics.
The disbursements of the Treasury
apartment for March 3 exceed receipts
s554,362. making the excess disburse-
,ents for the fiscal year to that date
903.9S5, JOG. as compared with excess
isbursements of $51.565.425 for the
Z. evious fiscal year to the correspond
tg date.
Commenting on statement that the
HreaSury Department will not receive
~ very large receipts on account OF
e income tax until June. the National
ty Bank circular for March has this
say:
1t is evident, however, that the cash
sources of the Treasury are very
ur, and the Secretary may find it ad-
sable to take action to replenish
EN-. Two courses are open ~ him
wit: A sale of Panama fifty
ar per cent bonds or one years. per
mt certificates of Indebtedness. The
arket for government bonds has been
rengthened recently by purchases for
re federal reserve banks, but these
inks prefer the issues that carry the
REGULATION privilege. The bid price
,r the per cents which do not have
Ills privilege, is now 1O2. but the mar
et is affected by the demand for tax
aston purposes. which occurs from
arch TO June every year.
There is little general demand for
:: per cent bond, but it is possible
TAT a small issue of these threes could
the most ready means of raising any
am up to s100.000.00O would be by
n issue of certificates of Indebtedness.
IS these would be particularly de-
irable investment for the twelve fed
raj reserve banks. They would AFFORD
Employment for their idle funds and
-et be available. by reason of the cir
.ulation privilege, as the basis OF cur
ency issues. They would have to be
.etired. however. within one year
Financial Notes.
Regular dividend of q per cent has
i,een declared on American Can Corp
,any's common stock. payable April l,
TO shareholders of record March II.
The underwriting syndicate of the st
Paul convertible bond issue has sold
20 Harris Forbes & Co the unsub-
scribed portion of the bonds. amounting
10 s2o,O00,O00.
Gold to the amount OF SIS, 900 was
purcha sed in Japan for shipment to the
United States. 1t is expected that near
ly slo,o06.000 VIII be imported by the
International Banking Corporation in
the seasons movement from Japan.
The american Steel Foundries Com.
pany has passed its quarterly dividend.
The gross earnings of the Pennsyl
vania Railroad for 1914 were s1S1, 1s4.S22
as compared with sl91.5o1.4ss in 1913. a
decrease of sl0.31S.S6:. or 5.3 per cent
This means loss in the corporation
tax to the government of $103,166.
Railway Steel Spring Company reports
net earnings for 1914 of $113.2s5 as
compared with S1.472.093 for 1913.
Mexican Petroleum was about the
strongest stock on the Wall street list
this morning. ulaking two point adj
vance.
New Haven's net operating income for
the month of January increased IL
per cent over that of January, 1914
This was accomplished with a AS per
cent loss in gross revenue, but a very
In f,S.