The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-03-16
FTNANCIAL IMPRoyEMENr.

and he continues: There has been a
much larger absorption of securities
by American investors than is gen
orally appreciated; proving that the
home buying power is still very con-
siderable, Notwithstanding business
/ reaction and declining dividends. Of
both stocks and bonds there has been
good buying, especially of bonds. The
lsupply has come from foreign selling
as well as from new local offerings,
all of which have been taken with
surprising readiness. Foreign iqui-
dalton has really been more pro-
nounced than at any time since the
reopening of the Stock Exchange, and
much of the selling was on German
account, which must be expected from
this quarter for some time to come.
There was also an increase of selling
on British account, although the
movement from this source has not
yet assumed importance. The most
striking evidence of financial improve
ment, however, was the prompt TAX
| ing of new loans in this market. The
New York state loan of $27,OO0,OOO
Az per cents brought 10S.459; a de-
cidedly better price than expected and
yielding A. per cent. The Swiss loan
of $15,000,000 per cents was also
promptly taken on a basis yielding
IS az per cent; a showing which may
attract other foreign offerings. 1t is
also known that the German, Italian
and Uraguayan governments have
been procuring funds in one form or
another in this market, and the report
still persists that Great Britain will
secure large credits in this market. AS
has already been stated in these ad-
vices, New York is now the only free
a,-lzo Of IN,
world, and these new movements are |
bound to have an important future eff
feet. When the war is over other ma
lions will again go to the large Euro |
pean reservoirs of capital for their |
needs, but the effect of these new VEN |
lures upon Americans will be educa- |
tional, since it will widen the horizon |
Of our bankers, investors and business
men, and hasten the day when the |
United States will take a more promi
nent part in international, financial
and commercial affairs.
1.-The money market continues easy,
mainly because of slackened CONNER
cial requirements, the rates for time
money and commercial paper being
lower even than a year ago at this
time. The surplus bank reserves are
large, amounting to 1929, 100000. There
nave De0u SOIu
this week, although our merchandise
exports continue to show heavy ex-
cess over imports. Foreign exchange
is unsettled, with rates showing a
tendency owing to persist
ent reports that foreign governments
intend to establish large credits on
this side. There has been a decided /,
increase in the supply of financial bills
resulting from transactions of the
Swiss. German and Italian govern
ments.. The supply of commercial bills E
is somewhat uncertain owing to the T.
violent changes in the character of
our export trade. Shipments of food
products. continue on a very liberal
scale, being quite sufficient to offset
the declines in cotton, oils, lumber,
ETC. There has also been very large
increase in the shipments of steel
and munitions of war. |
The continued excess of exports,
which is being accelerated by a heavy
decline in imports, is rapidly turning !
the United States into a creditor ma
ton. The debt which Sir George i
Paish referred to last autumn has al
ready been paid, and instead Europe
IS getting more and more into our I
1ebt. We are steadily buying less and
selling more as a result of the war.
Dur interest payments, which used to
De about $35O,00O,0OO annually, will
pc reduced by the return of securities.
The remittances by aliens to their
friends in Europe, which are large
IN the aggregate, have been cut r
Town materially. American tourists
Usually spend over s2O0,000,0O0 a IL
year in Europe, and this outflow will
De stopped this season. Our ocean i
freight bill USUALLY about $4,000 900 Y
will be smaller, because we
,nly pay the freight on imports. If :
hese tendencies continue our foreign
will steadily diminish; as
European capital is thus withdrawn :
rom the United States, and will prob
IDLY not return in haste, because of I
he high rates it will command there 6
when war ends and reconstruction be-
gins. The war is revolutionizing our h
relations with Europe, and +
Will leave US financially independent
n a higher degree than ever before. 2
Dur present loans are only war loans.
out they are of the greatest signifi- n
lance: and ere long the American +
will be doing effective
cam work together in the worlds t
market This means also new fields b
'or the American investor, who is be- 9
coming weary of the obstructive
acticS of home politicians. =
1.-The war makes slow and gloomy :
progress. Before very long Constan-
-inople is expected to fall into the
hands of the allies. This will be one
Of the most decisive events of the war,
and is bound to have important conse- !;
luences. 1t will give Russia the
access all the year into r
Southern seas, and will promptly re-