New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-22

~ is this true for underlying invest
ment issues OF strong railroads, when
have so improved from last summers
low prices that they are now selling
on an income basis not greatly below
that of before the war. The best rail
road bonds are limited in amount and
arc in constant demand By savings
banks. incsrance companies and con-
servative individual buyers. The sup
ply that comes 20 US from Europe is
not now sufficient 20 meet such needs
Improvement is not confined to these
gilt-edged issues. Railroad bonds less
well secured and railroad stock have
now made great recovery from their
lowest of the year. There is consid-
cradle new financing TO be done by the
carriers, and the January relnvestment
period is expected TO see large num-
Der Of new bond issues put out In
the bond houses il is thought that
some one large successful offering by
a strong road might, as on previous
occasions, bring out a large amount
of investment buying.
Proceeds of the Anglo-French loan
were made available for payments here,
relieving the exchange market Of that
much pressure. There was also &C
complished an arrangement between
New York and London banks for
steadying exchange through credits
here-the amount s50.000000 70 start
with. Exchange on London and Paris
recovered promptly, demand sterling
selling above 40 in the pound again.
Bankers supported the market and bills
were not pressed for sale.
London and Exchange Rates.
British authorities give evidence OF
concern over the unfavorable eH-
changes. of which that on this coun-
try is most conspicuous. To attract
purchasing from abroad to future war
loans they will be made free Of in
come tax 10 foreign holders. ADD
tional means of sending back to our
market our securities privately owned
in England are being suggested. Much
of those remaining must be so owned
that they cannot easily be drawn out.
The obvious method of sDecial tax
on income from foreign securities VIII
not be used until it is absolutely nee
essarv. for such discrimination would
seriously stand in the way of LONDON
resuming her position as great IN
ternational investment market :,
Securities returned, credits obtained
and gold shipped might we'll be suf-
ficient to take care Of the government
purchases of Great Britain and her
Allies. The arrangements through
which gold holdings of France and Rus
STA were to be placed at the disposal OF
Great Britain for war financing has. so
far as has been announced, as yet. been
called upon to only a small extent. II
is not, however, government buying
alone that has lowered sterling rates
here.
Private purchases in this country
greatly exceed British shipments to our
shores. and customary offsets of our
travellers expenditures and our other
payments no longer fill the gap. Brit
ish publications contain suggestions
that import duties on Injuries may re-
duce such buying abroad. This would
be merely attacking a symptom and
leaving the cause untouched. EXpan-
sion of currency and credit in Great
Britain would. according to rule, make
it a profitable country to sell to and a
poor country to buy from.
While deductions from prices are
often unsatisfactory, their course IN
England appears TO be in accordance
with this rule Complaints are seen in
publications received here by mail that
the sovereign has the purchasing power
Of only 16 shllings. A standard index
figure of commodity prices received by
cable from London shows a rise OF one
third since just before the war. With
such evidence CT imitation and gold no
longer moving unrestricted from Lon
don. exchange rates may be expected TO
continue unfavorable to that centre.