The Washington times., 1915-04-25
WEEK IN FINANCIAL CIRCLES

The principal development during the
past week. having bearing on the busi-
ness and financial situation in the
United States, was the revelation OF
the safe of the naton'e foreign trade.
While the securities markets Of the
country, particularly the New York
Stock Exchange. have continued to re-
cord an almost phenomenal business,
the issues traded in have maintained
more stable level Of prices than during
the first week, when changes in figures
established over might fortunes FOR IN
yestors, and consequently, the activity
in this field Is not attracting the same
degree Of attention that 1t commanded
a week previous.
so close to the s3oo'oooooo mark that
revised figures when made public are
expected to show our sales OF sooos
abroad amounted last month to prac-
tically that total. This round figure,
marking a new high record in export
trade, will yield a trade balance of ap-
proximately s14l 100000. which, though
x23. .OOO. 900 short of the corresponding
figure for February. Ia great credit Tor
single month.
May Total s2,75O,0O0,000.
Compilations made by the Department
of Commerce have led Secretary Red
field to predict that our exports for the
full fiscal year will total s2,76o' 'ooo'
or more than $3.50 0oo, 900 In excess of the
record exports Of 1913.
These vast quantities Of supplies that
are being shipped abroad are being paid
for in large part through the credits
which the European countries. particu-
larly the belligerents. have established
here. S..,oa
through short term notes, and the pro-
portions which these credits are assuln
ing is causing concern to the great
American corporations which are con
fronted with the problem OF financing
their institutions.
The gigantic American railroad sys-
TENS have made the principal demands
upon the supply of capital available for
financing purposes in this country. In
recent years the railroads have been
heavy bidders for short-term money at
continually increasing prices; ms
steady rise in rates demanded mas
caused both the railroad managements
and the bankers to recognize that rali-
road financing by short-term notes was
a temporary and uneconomcal expe-
dent. Consequently. within the next
few years the roads were expected potn
for the purpose Of meeting short-tern
maturities and obtaining new capital.
to put on the market long-term bonds.
Open Market Open.
The only market that will be open for
these bonds. with Europe practically
financially prostrated, will be tho
American market. The short-term
financing, which the railroads of this
country have to do now is in compet-
ton with the short-term financing being
done hero by the European governments.
and that it Is hard competition to meet
is demonstrated by the difficulty that
several roads, confronted with approach
| ing maturities, are having In securing
| renewals of their notes.
A question that arises among nnan-
| ciers is, will the European govern
ments to meet their present short-term
notes in circulation here. endeavor to
| float at their maturity long-term bonds
II they do, the American railroads
may experience difficulty in finding a
ready market for their!ssues. For, the
European governments. IL they do not
! sell the bonds here, will have to sell
| them to their own people. which would
mean in all probability that the foreign
| holders of American securities would
| be tempted to sell their American issues
and invest instead in the bonds of their
own government. which would doubtless
carry an attractive rate of interest.
CariGg for Canada.
Such situation would doubtless
throw OH the American market the
500, ,0C0, 900 to s4co. 900 900 worth of Amei-
can railroad securities now owned in
Europe. which would mean that the
American investors would not only have
to take up the new bonds that might
be put out by the railroads. but the
| IL halA oil .tou
| American financiers are not only OBJ,
| tanning credits for European belligerenti
| by the sale OF notes. but they are carins
for a large part of the financing beine
done by Canada. Whereas last year
| more than twice as many Canadian
bonds, of one form and another, were
sold In Europe than In the United
States. with the great money Market