The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-02-01
NEW YORK MONEY MART
All the Great Nations Of the World
Are Now Looking Toward New
York City for Financial
Assistance.

earnings of the company for the last
Quarter fell more than $4,000, 900 below
the requirements for dividends on the
preferred and common stocks, passing
the dividend, which represented past
conditions, was eminently proper and
should excite no criticism. Since the
corporation has been running for
months at less than 40 per cent of its
capacity, and since prices have been
abnormally low, no sane observer ex-
pected that the dividend would be
earned in the last quarter; nor could
any prudent investor expect the COM
Ipany to indefinitely continue paying
tunearned dividends out of surplus.
The most potent feature in the finan-
Icial situation is the growing abund-
ance of loanable funds available for
short term loans This is largely at
ttributable to the dullness Of business,
Ealthough the reduction Of reserve re-
iquirements from % to 10 per cent is
an important factor AS an Offset to
the latter influence the emergency
currency outstanding has been re
duced to s7O,000,0tv At one time the
total issue of these notes amounted
to considerably over s300,0O0,000, of
which about S140,000,00O were issued
by New York banks. All of the last
named sum has been withdrawn, the
last note being redeemed on Wednes-
day, New York being the first of the
| forty-three currency associations form
ed under the Aldrich-Vreeland bill to
| completely retire them. This is an
other proof, If one is needed, of the
strength and capacity of New York as
a banking center. In this connection,
lit is worth while remem bering that
New York Is now the most important
| free money market in the world;
and, while London is not at all likely
to lose its pre-emeninence, the war has
1 imposed burdens upon New York
which will vastly strengthen its pres
| tige ard ability as world money mar
! ket Eventually this war Is going to
immens augment the financial and
commercial power of the United
States, and if we only succeed in avoid
ing international complications we
shall find ourselves much advanced in
position and power, financially, COM
mercially and politically, when peace
is once more resumed. All the great
nations of the world are now looking
to New York for financial assistance.
They are establishing big credits here,
presumably for war materials, and our
bankers are considering new foreign
which would never have
presented themselves but for this
European conflict. Moreover, the war
will absorb all available funds in for
eign markets for months and perhaps
years to come. Ordinary capital ap-
plications in Europe are practically
suspended. Thus we may expect an
unusual demand for capital in the
United States to aid foreign as well
as domestic enterprises: all of which
means dearer capital everywhere, no
matter how cheap money may temper
arily be.
January developed a much better
investment demand for securities than
was expected. Evidently capital had
been accommodating in spite of last
years retrogression; and recent I'M
provement in general conditions seems
to have induced fair buying of high
grade railroad shares, gilt edged
bonds, public utility issues and short
term notes. There was also better
inquiry for certain class of indus
trials, particularly those benefiting
from the war. The abundance of mon
ey at low rates also induced larger
purchases Of good dividend paying
Stocks, WHICH at pIoScuL u5uiSo oASSh
show a good profit where dividends
exceed carrying charges.
since the first Of the year the market
has had a steadily broadening tend
ency. and this, too, impaired greater
confidence In values. For several days
there has been steady Selling to take
nrofits and also some distribution OF
stocks on foreign account, although
the latter feature was not prominent
The shock arising from the passing OF
the steel dividend shook out a great
deal of weak stock and gave the gen
eraI market a fairly good test under
the hurtful circumstances.
AS to general conditions, the tend
ency is rather towards improvement
than otherwise Confidence has been
steadily growing because the country
has adjusted itself to the war basis.
because the antagonism to capital
shows signs of abating, because our
LEGISLATORS are beginning to realize
that attacks upon business have been
to an injurious degree and be-
cause the railroad outlook has improv-
Cd nv the manifestation Of mora
considerate spirit on the part of the
Interstate commerce commission. Our
continued large export movement and |
: he resulting favorable balance of trade |
g. likewise an important factor, mas |
hcr, orr a hiljtv n