New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-03-15
WEEK in FINANCE
HERE AND ABROAD
Foreign Difficulties Tend
to Restrict Trading in
Securities.
MARKET FOR BONDS
SHOWS LESS LIFE
Bank Loans Continue to Expand
More Relief for Railroads
Trade Still Dull.

The riSe in security prices was
checked after Monday, but the market
became uncertain rather than actually
lower. Developments threatening our
friendly relations with warning powers
and in Mexico served 20 discourage
trading, but did not materially in
crease selling pressure. At the close
stocks were only fraction down on
the week and bonds were firm.
Trading in bonds on the Stock Ex-
change fell of. Recent large cor
porate issues, New York States ST.
100000 borrowing and continued
liquidation from abroad had apparent
" overbalanced investment absorption.
Since the beginning Of the year Clear
ing House Institutions have increased
their loans over $1S6,OO0,0O0, which
would indicate that considerable
part Of recent fotations have not yet
found resting place in the hands OF
tho public
Monetary conditions showed some
indication Of approaching frmness.
Though the renewal rate on call money
did not get higher than per cent
loans were made at pa, and IA was
the lowest. Time accommodations were
unchanged, but local financial institu-
lions were less active purchasers Of
commercial paper and rates hardened,
until per cent was the ruling figure,
though choice names passed lower. At
the end Of the week, IN spite OF
heavy increase i'm loans, surplus reserve
Of Clearing House institutions had
made slight gain.
Sterling exchange during the week
went a little lower, London checks
selling at 4.79i2 in the pound on Sat
urday Exchange on Hamburg and
Berlin was dearer. purchases here OF
thc now German war loan apparently
reacning some volume. The abnormal
discount ON German funds here makes
purchase Of these obligations an un-
usually profitable investment If pay
men. of interest and principal are hg-
urcd on ordinary exchange levels.
Successful State Financing.
New York States bond issue did not
seize the attention Of the financial dis
trict as completely Is it did the year
before. but the Offering proved great
success. The S27.OOO,O00 Of Az per
cent bonds we're taken through an all
or none" bid Oh an income basis Of
about 40S per cent Last January's
Sol 100000 of Az per cent bonds,
which so stirred the market at that
-imc, were bought ON 42lO basis.
State and municipal bonds continue IN
special demand because they are not
subject 10 the imposition and inquiry
Of the income tax. But even when
this and the accumulation Of idle
funds arc considered, last weeks state
bond sale affords substantial proof
of the extent Of our recovery from the
shock dealt 90 our finances last sum
NOR by tie outbreak OF war.
The Swiss loan offered last week was
quickly disposed Of This issue of
Sl5.OOO.O0O of notes had features that
particularly commended it IN this mar
ket. The proceeds were to be spent
here. and il was loan Of nation not
involved IN war. In addition, principal
ana interest we're made payable in gold
i'm this city, so all risk of exchange was
assumed by the borrower.
Another important security issue was
the offering by the Erie of Sl0,OOO,OOO
in oue-year 3 per cent notes, under
written and offered at 80. These were
10 paw of S7,5OOOO0 Of notes maturing
ON April ] and to reimburse the COM
pany for capital expenditures. This
borrowing. with the recent issue Of
S7.4OO. 600 per cent bonds and sale Of
some treasury securities, provided for
the roads maturities for the year.
Bank of Englands Gold Loss Small.
-- The Bank Of England, though its re-
serve proportion shrank about IA per
cent, TO little under 241s, made a bet
ter showing in its return of last Thurs
day than on the week before. Loans
we're increased in preparation for sub
scription TO the war loan and deposits
Of outside banks were much greater.
On the other hand, the loss of gold
which had been in progress was re-
duced to only about $4,000. Great
Britain's $4,000, 900 Of per cent Ex-
chequer bonds were placed At about
N 1916 per cent and were heavily over
u subscribed. In London at the end of
he week discount rates we're distinctly
drmer, lending institutions reducing
their offerings.
In France the moratorium, greatly