Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-08-22
F1NANC1A-LOCAL AND OTHERWISE.
BY I. A. FLEMING.

| depths. 1t is stated that Sir Edward
| Holden. the head of the London Mid
| land Bank, and Sir George Paish, emil
nent financiers, are coming to TINS SIDE
| to confer with American hnanclers re-
garding the much needed loan to slim
! ulate the market for the great eX-
change medium.
| Securities have come from England;
i gold from England and Japan; ottawa
! has been drained of it's yellow metal;
| France has sent American bonds; estf-
| mated selling of American securities
| from London has Appropriated 5000
! 900. 900. and still the bills for the set
I Element of great war orders pile up so
| fast that the exchange situation is de-
moralized.
There is talk of bringing gold from
,, Australia: Canada may be counted on
! to dig deeper for the honor of the
pound sterling. but all these efforts
are incapable of coping with the prob
| lem of paying for munitions. A loan is
| believed to be a drastic necessity
bond Issue an innovation, such as Great
Britain has never undertaken, just as
soon as stern necessity brushes John
Bulls pride.
Unfortunate Conditions.
There are certain unfortunate condi-
lions existing that must needs be
mended before prosperity in the fullest
will come to the United States. The
largest railroad mileage to go into the
bankruptcy courts in the years since
1893 was recorded in the passing last
Tuesday into receivership of the Mis-
souri, Pacific and the St. Louis and Iron
Mountain railroads.
Railroad earnings, despite the in
crease in the east, the partial increases
in the west and the cut in the tide wa
ter rates for anthracite coal, continue
to decrease with each succeeding re-
port.
Railroad management has learned
the lesson of economy. In scores of
great systems. economies rigidly en-
forced wherever possible, with reduced
transportation facilities. in many
cases, have enabled the great railroad
systems of the country to turn con-
siderable gross losses into inconsider-
able net loss or more or less note
worthy net gains.
The railroads that have been judi
ciously. carefully and conservatively
managed are making a splendid fight
to stay IN the field of dividend payers
and maintain their regulations. Some
armament. Alton. Rock Island. and
others like Frisco, Missouri Pacific
Iron Mountain and some more of like
caliber. have reached the point where
damaged.
Commenting on the situation, Bache
& Co. of New York have this to say:
In 1898 railroad bankruptcy was at
it's zenith. In that year seventy-four
railroads went into receivers hands.
involving a mileage Of 2s,34o.
The total mileage in receiverships
1t is startling to know that there are
today in receivership railroads repre-
senting a mileage in excess of that of
1893, namely, 1897.
The capitalization and funded debt
n "a
l. 1915. and at present, are shown by
the following table:
Funded Debt. Capital Stock
s ins' and up % date
Total at this time 81 1851 1925 SOL e2s 500
In 1898 the whole country was
broken by hard times. Today with a
ton in bankruptcy or on the edge, the
only reason we are not having as hard
times as in 1893 is because of the
sporadic and spotted activity produced
by war.
Financial Notes.
1t is likely that a national bank Sec
ton will be formed at the forthcom-
ing meeting of the American Bankers
Association a Seattle. The trust COM
pany and savings banks sections are
active and well organized, both boost
ing the advantages of their respective
banking features.
Bankers associated with national
banks in attendance on the convention
have called a meeting at the Wash
ngton Hotel September 7. at 10 o'clock
in the morning, at which section may
be formed.
The Treasury Department has bought
so far this month 100000 ounces of
silver, the price being decidedly low.
betweenI47 and 48 cents fine ounce.
The bullion will be coined at the Phil
adelphia mint into dimes, quarters and
halves.
| New federal reserve currency. design
ed to take the place of national bank
| currency, contains the name of the
bank taking it out on its face.
Bethlehem Steel shares have ceased to
be active-no longer a war favorite.
The tape rarely shows sales.
A consolidation of all the traction
lines in West Virginia Is talked of at
Clarksburg. Officials of the great coal
companies operating in the state are
said to be actively working for the
lconsolida ton.