Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-08-15
FINANCIAL-LOCAL AND OTHERWI!
By I. A. FLEMING.

| loan by England secured on American
| bonds and stocks, rather than on scrip
is expected and that such a loan would
| be a certain success.
| Commenting on this situation, the
| Wall Street Journal has this to say:
| THAT a British loan Of this nature
doubt. It is no secret that some Of the
other foreign loans brought out here
during the past year . have not not gone one
gone beyond the Underwriting bankers
| But there appears to be certain senti-
| ment attached to a British loan which
does not apply to others. Probably be-
cause of the novelty of such an opera
ton. The fact remains that the inquiry
for the loan is widespread
"A curious feature in this connection
| Is the fact that interior banks are dis
playing an interest. They have read SO
much in regard to a prospective British
loan that they have written to their
New York correspondents to be sure to
comes. It is said that should loan be
experienced BY the New York bankers
| in taking care of all their friends. But
appears to interest the banks Since.
however. this rate has been established
in England by the last British war loan
bankers are Of the opinion that the OBJ
jections the English authorities might
at one time have found for the pay
ment Of this rate here no longer ex-
lists"
These arc the days Of large orders for
current on Wall street have any basis for
fact. Unquestionably munitions have been
ordered in tens Of millions Of dollars and
moro, but to believe all tho stories that
are turned loose would be to believe that
mono Of the great allied powers engaged
In the European struggle is able to pro-
duce munitions at home, and the reverse
Of this is known to be a fact.
Spectators have run riot In the market
for war stocks and have heretofore been
uniformly successful in varied degree.
They have advanced prices irrespective
of the intentions made public and plan
ned by managing officials, and they be-
lieve that with such enormous orders CO
melon cutting, etc.
Bethlehem Steel preferred, with the as
surance Of c. M Schwab. its president.
that it would not receive more than its
last week, only to drop back to $3.50. and
some late-gettfne-in spectators lost
seriously as q result.
The general imp. ession is that the war
orders have been greatly exaggerated:
that but a portion Of the reported orders
have been received. and that there will
surely be a deluge for the crazed specu-
lators in war shares
All industrials in the list seem to be
taking a rest Whether the decline
decision" in rail rates in the west and
the "$8.000,0o0 adverse decision ri the
east, will continue; whether the specula-
tive fever will abate and war stocks break
under a rush to cash profits, all remains
to be seen, but the general impression is
that 1t would be the part Of wisdom for
SPECTATORS of this character to go slow
and put on brakes.
All told, $100, 000, 900 of war loans have
been placed in America
State Banks VS.. Reserve System.
A new explanation Of why the state
banks are staying out Of the federal
reserve system was offered by Andrew
]. Frame. president of the Waukesha
National Bank of Waukesha, Wis, at
q recent dinner of the Milwaukee
Bankers Club. Mr.. Frame stated his
belief that II the state banks were to
be induced to join in large numbers
the act would have to be modified in
some mea~-,e SO as to obviate the
necessity Of further calls on member
bank balances to build up a reserve
already more than ample ffr all emer-
RepoiAa