The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-11-19
Business and. Finance

New York, November. Is, 1915

new OEk, n OVemDer. 10, 1913.
A favorable commentary on the oo-
Grafton of the new Federal Reserve
System is afforded by the ease with
which the bumper crops of 1915 have
been financed. Heretofore the harvest
ing season has been the signal for
tight money and correspondingly high
rates; when the banks from the "in-
terror" have called upon their reserve
agents not only for their own surplus
funds, but for whatever extra money
could be loaned for this purpose. This
year, in addition the regular domes-
tic requirements, American bankers
and investors have been indirectly
called upon to contribute to the ex-
traordinary expenses of the Europ-
can conflict. This has been done in
two ways; % first, the repurchaSe of
American securities held abroad; and,
second, the granting of regular and
special credits" through the Anglo
French external loan as we'll as
through private arrangements between
firms and individuals. All this has
been accomplished while bank sur
pluses have increased instead of de-
creased, and simultaneously with the
advent of one of the greatest bull
markets that the Stock Exchanges of
country have ever known. The
operation of the new banking system
has contributed in no small degree to
this condition of money redundancy.
During the past two weeks, how
ever, reports from the interior indi-
cate stiffening of money rates as a
result of the increased demand for
cash for industrial expansion. Thus
the president of the largest National
bank outside of New York City is
quoted as saying: Our deposits have
begun to work lower Cincinnati and
Louisville banks today asked for a
large amount of rediscounts. Min
neapolis and Kansas City are begin
ming to ask for credit. AS the money
is drawn from us farther west and
northwest we in turn shall reduce our
balances in New York and in conse-
quence there will shortly follow inn
provements in rates And it all shows
that the present talk of increase in
business is not merely an expression
OF wish, but statement of comb,
tons" This statement is in keeping
with the estimates of increasing bust
ness activity outlined in this review
for the past three months.
IN the STOCK market the tendency to
discard the war specialties and to
substitute the more substantial divi-
dend railroad and industrial stocks |
has been very much strengthened by
the course of market prices. The lat
est published statements of railroad |
earnings are very gratifying to the
holders of this class of securities, and |
the indications are for the continued |
popularity of a raolroad stocks and |
bonds. Investors are studying for |
themselves and are learning to dis |
criminate. They know that increas-
ed earnings mean Increased profits, |
and that values are based upon the |
power to yield earnings to the stock
holders. In this respect number or |
the standard industrials have given |
good accounts of themselves re-
Gently, the dividend records hav-
ing been excellent. In addi-
ton to regular dividends
a goodly number of extra disburse-
ments to stockholders have been
made bya the Studebaker Co., Kelly