Evening star., 1915-01-10

f,;r measure of success has attend
cd the resumption of trading in securl-
ties on the New York Stock Exchange
with as much strength in evidence as
might have been expected.
So far there has been no evidence OF
sudden withdrawal of European capl-
tai There is no indication in this that
securities held abroad will not come
home In time and the fact that there
has been little foreign liquidation has
been due as much to the prohibition of
arbitrage business as to the DISPOSE
tion on the part of foreign holders TO
make their selling gradual, so as not
to disturb conditions existing.
The granting of the rate increase
asked by the railroads of the east and
the broadening of the ruling OF the
interstate commerce commission nave
given confidence to holders of rail
shares that the era of enforced econo-
mics and decreases in earnings is near
an end.
That conditions are encouraging
should not lead to speculation, say
indeed, the stock exchange is protect
ing the market from expansion on
speculative lines. Prices are sufficiently
low to make investments reasonably
safe, and there is time enough for
speculation and expansion when the
conditions abroad have resumed their
normal trend.
The heavy expectation of breadstuffs
and material of various character
needed abroad has given the balance
of trade to the United States and the
result is evidenced in the low rates
for foreign exchange which may lead
could take SECURITIES for any balance
due. The United States does not need
gold at this time.
The Increased reserves of the federal
re haF ka n
discounting commercial paper practical
ly provides for comparative safety of
the money market. Moreover, the fed
eral reserve system is just beginning
The establishment of IA per cent rates
fer thirty days paper and per cent
for up to sixty days maturity will be
| taken advantage of by many member
| banks.
| With more liberal rediscounting ia
cilities and the admission of bonds and
securities to rediscount, under strict
rules and regulations, the reserve sys-
! tenn would be of much more value to
| It's members.
Baltimore and Ohio Development.
| The Baltimore and Ohio Railroad
| Company recently completed the So
| called Magnolia cutoff" in Maryland.
| On this stretch of eleven miles $6,00O,-
, 900 has been spent in the last four
! years, to increase the efficiency of di-
vision handling seventy freight trains
and fifteen passenger trains daily.
| In the interim between 1902 and the
| present time the Baltimore and Ohio
Company has added $146,000,OO0 to its
property investment in this kind of
| work its system.
| For the last fiscal year the Baltimore
and Ohio company reported a gross in
come of 1O5.O50,0OO, an increase of SIS
per cent over the gross earnings OF
1902 During the interim between 1902
and 1914 the improvements and better
ments of roadway, etc. have enabled
| the company to increase the load of the
average freight train from 400 tons
to 619 tons.
And what the Baltimore and Ohio
company is doing other high-grade
railroads are also doing, to enable them
to operate more economically, and to
| better advantage.
Looks for Good Business.
| Ashton G. Clapham, president of the
Commercial National Bank, is confident
that the Canal Zone will give ample
business returns to the two branches
which the Commercial will establish
at Cristobal and near Panama City.
Mr.. Clapham. who has just returned
from the zone. is enthusiastic over the
prospect. 1t was the banks intention
to establish a branch on the Pacific
side of Balboa, but investigation de-
Iyeloped that this was simply the day.
l.time home of the business officers Of
1.-The administration, and that there wal