The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-08-20

New York City, August I, 1915.
The financial markets have placed a
distinctly favorable Interpretation up
on those important happenings which
in one way or another exert power
full influence upon business and FIN
ance. The stock market has been act
i've, strong, even enthusiastic, but with
a tendency to forsake its speculative
shares and to return to the more sub
stantial standard securities. Indeed,
the most gratifying feature OF the
stock market has been the increasing
popularity of the railroad stocks, bas-
ed to large extent upon the excellent
prospects of the carrying trade, but,
more important, upon the evident de
sire of legislators and supervisory
agencies to grant square deal to
the roads.
The Interstate Commerce Commits
sion handed down decision on Wed.
nesday granting the western roads
certain increases in freight charges.
While the amount of the increase is
somewhat disappointing to the rail-
road arrangements, it will net them
sufficient to meet some of their heavy
obligations, and allow a moderate sur
plus for interest charges on bonded
indebtedness. 1t is also welcome re-
lief from the common custom of re
fusing every rate increase as mat
ter of course and gives the railroads
reason to believe that they may ex-
pect a careful investigation into the
actual conditions before the announce
ment of decisions in these important
matters. Happily, the railroads are
now in a position to count upon q
greatly increased carrying trade from
which they may confidently expect
proportionately increased earnings.
The Canadian Pacific Railroad more
than met expectations this week by
declaring their regular 21l per cent
quarterly dividend, the effect of the
stock being an advance of 7 points in
the first session following this an
nouncement. The American investor
is convinced that a period of prosper
ity is dawning for American railroads,
and for this reason our railroad secur-
tiles meet with an overwhelming re-
ception as popular investment.
Gold Imports and Foreign Exchange
Attention has frequently been called
in this review to the need of some eX.
traordinary remedy for the foreign ex-
change situation, Sterling exchange
last week declined to AIS, a new low
record, while at the same time the
movement of merchandise and food
supplies is all in the direction of the
European countries. Inasmuch as it
has been the policy of the Bank Of
England to prohibit gold expectation
from the British Isles, it was assum-
ed in this country that efforts would
be made to establish special credit
here, in order to preserve the "bal-
ance of financial power" as much as
possible. 1t was even said that be-
fore the old Lady of Threadneedlc |
Street would allow gold to go out of
England, she would advance the dis |
count rate to 10 per cent.
These predictions have proven un-
stable, however, as on Wednesday o.
this week New York bankers .receiv-
ed shipment of gold valued at $50,
100000 direct from Great Britain. In |
addition, British investors have also |
returned about $l5,000,000 worth Of
American securities, with more to fol-
low. This gold shipment has been
shrouded in mystery, and though ru-
mors of its coming have been heard |
in the street" for week or more,
there have been none either to deny
or confirm these humors. 1t is real
lied in international banking circles,