New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-18

The high prices reached by the
standard issues in the week before in
vited selling by owners who had been
waiting return TO something like old
time levels. Spectators took profits
here and the short interest was ex-
tended Selling. however, reached no
great volume. as favorable factors
were evident. The railroads are doing
more business. The figures Of idle
freight cars on October /. that showed
the surplus reduced more than 100000
last month to under $4,000, indicated
how freight was moving. Railroad
arrangements, having learned that
money is hard TO get. have made dol
lars devoted to upkeep of right Of
way and equipment 20 further. As
traffic grows net earnings should re-
ceive more than proportionate bene-
fit.
Selling by Europe.
Much was heard Of European liqui-
dation in the railroads, but probably
this reached no great amount Ger
tainly the smaller business done In
the railroads as they fell back proved
there was no insistent selling from
abroad. When arbitrage houses traded
here and in London by cable, making
profits through the differences IN
prices in the two markets, we could
get fairly good estimates Of each days
balance on such business. Even then
selling direct for foreign account was
not readily ascertainable. Now, with
London no longer furnishing free
market for securities, arbltrage opera
tions have ceased and we can onlF
guess how much comes here from Brit
ish sources.
On every rise more or less Of our
stocks held on this side for foreign
owners is disposed of and some sold
on orders cabled from the other side
for future delivery. The supply Us
limited. An official, painstablng ln-
vestigation put the total OF railroad
securities owned abroad at around g.
200 600 600. par value, and since then
much has been sold. OF what remains,
the British authorities, according 10
cabled accounts Of Parliamentary pro
ceedings. are having no easy time 10
rather such shipments as arrived laSI
week TO pay for government purchases.
Private owners abroad see little bet
ter 10 buy IL they sell our stocks ana
bonds In the international houses DO
is expected that until the British gov
eminent offers its people another war
loan London selling here VIII be com
paratlvely small.
Funds to finance the security mar
ket continued ample, call loans renew
inc at ia and = per cent. Inc ap-
proach of payment on the anglo
French loan, with its increase m de-
nosit liabilities and reduction OF sur
MUS. caused a little hardening or rates
for time loans on Stock Exchange col
lateral. but these later relaxed. The
surplus of Clearing House institutions
here was reduced only LITTLE over
81 600 600 by the great expansion IN
loans and deposits that accompanied
the financing of the first part OF the
foreign credit. Some gold from abroad
and movement Of funds from the IN
terror increased reserve holdings ana
the excess above requirements Satur-
day morning stood at over Sles,OUVoUV'
Placing Anglo-French Notes.
British and French legislative au-
thorities having given their assent 20
the borrowing Of some S5OOOOO.OOO
here through fve-year per cent notes,
the work of making the issue known
10 the American people was begun.
/ The underwriters have withdrawn an
unusually large amount from sale In
part this was because banking lnstitu-
f tions thought they had good invest
ment; in part, TO help the success OF
+ the public offering.
/ PRINCIPAL and interest OF the notes
and of the Az per cent bonds into
which they are convertible are pay
able. without reduction OF french or
British taxes, in New York Such an
, obligation will be met. no matter what
NAV be the outcome Of the war or how
great may be the staggering expense
/ II brings No great commercial nation
can allow its debts abroad 10 fail OF
prompt payment. The huctuation IN
/ the market value Of the notes because
| OF this provision should be less than
those of the domestic loans OF the Dor
rowing nations. The price we get Tor
the accommodation is a good one some
critics in the borrowing nations insist
IL is too good.
There is also under discussion a
proposition for further banking ac-
commodation to extend credit 10 pri-
waite purchasers who pay through Lon
don. Our fnanciers wish this TO take
the form Of acceptances by banking
institutions here. This would place
the risk Of exchange abroad and aid
us 90 build up the profitable business
Of financing foreign trade. Word Of
this plan aided IN recovery Of sterling
/ rates, which had been sagging the
week before. Sight drafts on London
sold as high as 46sh in the pound af-
ter a decline early in the week TO
A67h
Hope of Order in Mexico.
Definite decision 10 recognize .n Mex
leo the CarTanza government ought 10
mean step toward bringing that coun-
Try out Of the state Of anarchy which
has rendered so much Of our invest
ment there Improbable. How much
better the favored faction will prove
than the Huerta regime we frOwned
upon Is beside the question. Some
stabl Norm Of government there must