The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-07-09
Business ana. Finance
By.w. s..Cousin,. Editor The American Banker

Not all the stocks and bonds issued in
this country which are owned in Eu-
rope will be resoid to us, but no doubt
good deal viii be sold, and we will
in all probability offset the balance
by capital which we ourselves will
place at the disposal of other coun-
tries. 1ney may have to pay relat-
lively high prices for this capital, but
no higher, if as high, as we paid for
the capital which Europe put at use
in the United States. And it is most
probable that in the long run the rest
of the world will pay the price that
may be necessary to obtain capital
from us, for nowhere else as things
now stand can capital be had for for
eign use. Particularly are we we'll
placed to provide credit for interna-
tional trade, and that is a field to
which we should devote ourselves to
with energy and with foresight More
trade will come in the wake of hnanc-
ing the trade already to be had, and
with more trade will come greater OPP
portunities than this country has ever
yet had.
City Bond Sale.
There was general disappointment
over the result of New York City's
greatest bond sale on Tuesday of this
week, and the price realized by the
city was fully two points below that
established in the financial district
week prior to the sale, where the
bonds can always be bought on
"wher and if issued" basis. The aver
age price for the $7l 100000 issue
was lOl.272, for the $46,0O0OOO fifty
year bonds l0l.253, and for the $25,-
100000 15-year serial bonds 101 1906.
These prices are only a mere fraction
lower than the syndicates which of
fered to take the whole amount or
any part thereof at l0l044 and 10l. 100
respectively. The City Comptroller
is OF the opinion that while the small
number of bids might be construed
as an indication that there had not
been general interest in the sale, the
lack of competitive bidding is due to
the confused condition of the financial
and business markets in this country
as well as abroad. The new plan of
serial maturity is one that will doubt
less appeal to lovers of New York
City municipals, and is indicative Of
the new policy Of pay-as-you-go, that
should be as applicable to cities and
corporations as to individuals.
The most obvious lesson to be de-
rived from this sale is the increased
cost of capital, which means the in
crease cost of living for cities as
well as for workingmen. The average
cost to the city of this new capital is
4.3 per cent. In 1909 the city sold
bonds on a 396 basis, and in each sue
ceeding year the price has constantly
increased. The experience OF other
cities is almost identical with that of
New York, more especially when the
loans are Of the long term variety.
Stock Market.
The following resume of, stock mar
ket conditions for this review is plain
and pertinent:
The principal excuse given for sell
ing stocks during the last few weeks
is found in the announcement of the
new English war loan, the argument
used being that American securities
will be sold to enable those who hold
them to subscribe to the new loan, and
the further announcement that loans
are. to be made in this country by for
eigners using American securities as
collateral. When we consider the
amount of money in this country wait
ing to be used either in the way of
investment or in making loans, these
reasons for selling securities seem al