davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
LOAN
IS TO CHECK
GOLD IMPORTS
1t Will Be S3OO,0OO,OOO Sc
cured by Collateral, at
51a Per Cent

J. p. Morgan e Co., controlling
the fiscal arrangements of the
British government in this country,
issued yesterday the folloioing state
ment of particulars concerning a
new British loan, public Offering Of
fchich 10iU be made merit week:
A new British government loan offer
ing had not been in contemplation at
the present time, but the prevailing
ease Of money and the difficulty which
the banks are having in proftably
employing their funds have led US to
indicate to the British government that
the present is a favorable time for it
to establish additional credits in
America, even though such credits may
not be Immediately required. Accord
ingly, the British Treasury has to-day
accepted the views of the American
bankers and has authorized them to
proceed.
Final details have, OF course, not yet
been arranged, but the total amount of
the issue will be 100000, 00O-made up
of $4,000, 900 Of three-year notes and
the same amount of fve-year notes, all
to be dated November /, or there
abouts. TO bear interest at 81 per cent,
and 10 be offered to the investor so as
to net at least that interest yield. The
loan will be amply secured by high
grade collateral, as in the case of the
last United Kingdom loan, the precise
assortment of such collateral to be
determined at the time Of the Offering
Advance applications for participa
tion in the syndicate which will under
write the issue indicate that it will be
over-subscribed.
The British Treasury has OF late
renewed its shipments Of gold to this
country upon a large scale. This con-
tinued influx of the metal has caused
some concern IN the banking COM
munity, and it is believed that the
issuance of the proposed loan will tend
To cause at least temporary cessation
in gold imports.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
Dividends

American Brass.-Regular quarterly td.
dend of ~ per cent and an extra dylcehd
of 3ia per cent, both payable November y
TO stock of record October 81 also an v1ts
dividend Of per cent. payable December y
TO stock of record November 30.
Pennsylvania Railroad Regularly Guar.
terly dividend Of liz per cent, payable No
vember 20 to stock Of record November l.
Pressed Steel Car.-Quarterly dividend q
s150 a share on the common stock, payable
December 6 TO stock OF record November Is.
This is an increase of 80 cents a share cy,r
the payment ordered July %. Regular oar
terly dividend Of Sl.75 a share on the pre-
ferred stock, payable November y 70 stock
of record November l.
Standard Milling.-Dividend Of per cent
on the common stock. payable one-half n
cash and one-half in common stock az par
in quarterly instruments; also quarterly
dividend of ~ per cent on the preler'et
stock, payable November - 10 STOCK o.
record November 20.
Pure Oil.-Regular quarterly dividend Of
per cent and an extra dividend OF per eefs
on the common stock, payable December l
stock OF record November Is. In the 1881
quarter . per cent extra was paid
TAYLOR Wharton Iron and steel.-Rsga!,f
quarterly dividend Of ia per cent on pre-
ferred stock. payable November l to stock 81
record October "a.
Standard Oil of IndisnA.-Regular Guar
terly dividend of 3 per cent. payable No
venber % to stock OF record November T.
Harrison Bros. & Co.-Regular qaar'e'r
dividend of ia per cent on me Ps
ferred stock. payable November ! TO stock q
record October 26.
1iss-
Hutchinson Sugar Piantation.-Extrsoi s,
dend OF 20 cents a share In addition % ,n'
regular monthly dividend of 30 cents shsr.
payable November to stock OF reeon
October a.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
RESERVE BANKS ARE
PAYING THEIR WAY
Mr.. Hamlin Says Test of Federal
system Is Yet to Come

Boston, Oct. %. Charles s. Hamlin,
governor Of the Federal Reserve Board.
told the Massachusetts, Board of Trade
at its annual meeting to-day that the
Federal Reserve system was in a thriv-
ing condition. "All the twelve banks
are earning their expenses he said.
As whole, the system for eight
months ending in August last showed
combined earnings of more than So.
100000. from which total current ex-
penses Of 81 100000 should be deducted.
Mr.. Hamln stated.
THE vast resources OF the Federal
Reserve banks have been scarcely
touched as yet" he said. The real
test of banking system comes not in
our present times of prosperity, but in
times Of adversely. | am confident,
however, that the Federal Reserve sys-
tenn will demonstrate its power to cope
successfully with all problems which
the future may have in store for us"
State banks and trust companies
Sooner or later must realize that they
must join the Federal Reserve system
10 obtain the benefits of its CONSOLE
dated reserves or must establish n par
allcl system Of their own, according 10
Mr.. Hnmln. The deposits of national
banks since the passage Of the Federal
Reserve act. he said, had increased at n
greater ratio than the deposits Of state
banks and trust companies.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26

forehand all the problems which the
belligerent countries will have to
face in the period Of transition from
war to peace, again with a differ
ence, namely, in this case, that we
are accommodating in advance no
Knowledge or theory with which to
meet them when they arise. In
Germany an imperial commission
has been appointed to govern the
conditions of transition. 1t will have
programme ready when the time
comes to transfer millions of human
units from the work of war to the
works of peace. Several royal COM
missions are working to the same
end in Great Britain, and in France
the work Of rehabilitation has been
produced in miniature and the de-
tails of transition from a state OF
war to a state of peace have been
intensively studied. In this country,
as in the belligerent countries, a
vast amount of labor, capital and in
Gustrial mechanism has been trans
ferred from the normal reproduc-
tive pursuits of peace to the work
of supplying war with goods at high
rrices. Every one knows that when
the war stops the readjustments
will be very violent, and yet no
steps are being taken to prepare the
ways of transition. We are under
the tyranny of the idea that if we
Rave the gold nothing can happen
to us. But gold is not wealth. You
cannot eat it or wear it. Gold is a
token Of exchange, the stuff in which
the things you eat and wear are
priced. If gold were to be discov-
cred in the quantities of copper 1t
would be as beautiful and as useful
in the arts and sciences as before,
hut we should have to stop using 1t
for money. You would need thirty
POUNDS of it to buy pair of shoes
ard the price Of the shoes would be
about $3.50.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
Cotton Crosses 2O.Cent Mark

Cotton scared above the 20-cent mark
yesterday in what was declared by
older traders TO be one of the most re-
markable sessions in the history of the
local exchange.
Smaller traders joined in frenzied
rush to buy as prices bounded upward
early in the day on bidding by leaders
on the bull side of the market.
The trading became still more eX-
cited when prices suddenly started to
slump as though the bottom had
dropped out of the market as the re-
suit Of selling for profit by big holders
and also heavy offerings from leading
concerns dealing in spot cotton.
There was a perpendicular drop in
about fifteen minutes Of from l25
points in December to so points in May,
or from 81 to SC a bale. A rapid recov-
cry of As to so points then took place,
and closing prices averaged about 40
points lower than on Tuesday.
The sudden slump in prices yester-
day recalled a break Of over 3 cents a
pound in March, 1904, following the
collapse of Sully's spectacular opera
tions.
When the closing bell had put an end
to the demonstration and traders found
time to discuss what had happened it
seemed to be the consensus of opinion
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
News Digest
Foreign

London Markets.-London, Oct. 20
The stock market WAS cheered slightly
by the Verdun news to-day and quota
tions hardened in several instances
but business fails to expand pending
the clearing of the Balkan situation;
Rumanian oil stocks were weak and
Brazilian fractions fiat. American Sc
curities relapsed into dulness after
Yesterdays activity and closed idle.
Low-priced shares were steady excep-
tions. :.
Money was in fair supply and dis
count rates were quiet. Treasury oills
still appear to be the most popular OF
the short-term issues, and last week
f23 100000 were sold against fl3,oOo,-
600 of Exchequer bonds. Money. 3 per
cent; discount rates, short and three
month bills, So to SIS per cent; gold
premium at Lisbon, $500.
Paris Bourse.-Paris, Oct. 25.-Prices
were steady on the Bourse to-day.
Three per cent rentes, 81 francs 10
confines for cash; exchange on Lon
don, 81 francs 81 u centimes; per
cent loan, 80 francs.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
EUROPE TURNS
SCALES In THE
WHEAT MARKET
Large Sales by Foreigners
Set Prices Back-COt-
ton Trade Wild
CHICAGO. October 25.

Chicago, OCTOBER %.
Agents acting for Great Britain and
her allies succeeded temporarily at least
to-day is accomplishing what all the
embargo agitation in the United States
had heretofore failed to effect the
stoppage of the wild wheat price sd-
vance which has been in progress Writ
ually unchecked for nearly four
months. After the market here made a
fresh Jump of cents to-day foreigners
not only stopped buying, but turned
aggressively to the selling side, and
forced setback that wiped out the
greater part of the early gain.
Sudden withdrawal of orders by the
British governments purchasing agents
advance took traders breath away by
vaulting to S1.S6 bushel, cent above
the high price record Of the Joseph
Letter corner" in 1898.
Then word went out that foreigners
were reselling their holdings both for
immediate and future delivery. As
some of these. holdings had been ac-
CURED only yesterday at prices nearly
IS cents below to-day's top level, the
bearish influence on the market was
electrical. Quotations came crashing
down, and at no time during the re-
mainder of trading was there any last
ing rally. The close was Enthusiastically
weak, at net gains of only q to cents,
with December delivery $3.50 to $1.50$.,
and May s1.SOh to s1.801a.
Worlds Shortage Bulls Reliance
World shortage in wheat supplies,
deficit estimated by one authority at
roughly billion bushels as compared
with a year ago. was the factor on
which traders who were buying at to-
days high prices relied to attain the
50 a bushel goal Of the bulls ambitions.
That price was realized by B. P. Hutch
inson cold Hutch") in a corner" in
1883. The other high price record not
excelled to-day was established shortly
after the American Civil War, when
sales were made at 1910 bushel.
Alarming advices from Argentina re-
garding increased drouth damage gave
the immediate impetus to the transient
bulge in prices to-day. Grain buyers
for Europe had originally figured on a
surplus of 64.OOO,OO0 bushels from Ar
gentina TO meet the crop shortage in
the United States, Canada and other
countries, but this morning it seemed
uncertain whether Argentina would
raise enough wheat to supply domestic
needs. One Of the elements, however,
in the late decline in prices here was a
sudden drop in quotations at Buenos.
Ayres, indicating that perhaps after all
the crop outlook in Argentina had taken
a turn for the better.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
Money and Credit

Money on call at the New York Stock
Exchange ruled at "a per cent, with
high Of 2h.
The market for time funds on brok-
ers' Stock Exchange collateral contin-
ues easy. Bank offerings are large
but the demand is still light. Ninety
day and four-month maturities are
now quoted at ~ per cent.
Ruling rates on money yesterday
compared with year ago were as fol-
lows:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26

freely made, based upon the propos,
to sanction bond issue Of 100000 to
be used for building new passenger
station in this city. Much Of the crit.
cism was directed against conditions
which have resulted from acquisitions
of various properties in the past, and
the speakers for the most part were
insistent for declaration of dividends
before New Haven was given a new
station.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
U. S. Treasury Finances

Washington, Oct. 25.-Condition I"
the United States Treasury to-day; N"
balance in general fund, si53,5iS's.'
total receipts, s1,764yo1s; total par
ments, S2,4o1,251. The deficit this u.s.
cal year is s76,S1e.725. against dsts'
of $40,535, 1874 last year, exclusive o.
Panama Canal and public debt trs'''
actions.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26

Under the delusion Of growing
rapidly rich by adding TO our hoard
Of gold this country is putting itself
in the condition OF country at war,
With one difference, that a country
at war may take control of the sup
Ply and distribution Of essential
goods. whereas in a neutral coun-
try the controlling factor is the
price alone. We are borrowing be-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26

The above rates express the cost OF
foreign money in terms of the Ameri-
can dollar. You buy an English pound
sterling for s4.75it; the intrinsic par
ity is s4.S6% per pound. Thus, you
say either that pounds are at q dis
count OF that dollars ere at a pre-
MUM, which is owing to the fact that
in England the demand for dollars
with which to settle accounts In this
country is greater than the demand in
this country for pounds with which to
settle accounts In England.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
A year

Commercial Paper.-The commercial
paper market remains unchanged, with
trading dull. There is no indication of
any increase of offerings, which ac-
counts for the paucity of transactions.
Rates are 81 @3% per cent for the best
regular maturities and 9%Q+ per cent
for names not so we'll known.
Official rates of discount at each Of
the twelve Federal districts are as fol-
lows:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26

that the action OF the market meant
little more than "shake out" of weak
accounts on the long side.
The late upturn in prices was at
tributed in part TO disappointment over
the official figures from Washington
showing that the amount of cotton
ginned prior to October IS was 1921,
733 bales. compared with 5,70S,730 for
1915 and 7,6l9,747 for 1914. Round
bales included were 1869 and Sea
Island 64,931.
The number of bales ginned by states
and last years ginning to the same date
foliou.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26

Below is given the current exchange
value Of foreign money in dollars and
cents, together with the intrinsic gold
parity, as calculated by the United
States Mint:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26

Wheat -four SO a barrel, the
highest price since the Civil War
period, when it was priced in de-
preciated paper currency. Cotton
20 cents a pound. 1t sold at IA
cents two years ago. These are
items of a days news. Restraints
have been abandoned in the steel
markets. with prices of semi-fn-
ished steel SIS to $50 higher than
enc year ago and Of finished ma
tcrials $40 to $50 higher" says
"The Iron Age there is more ex-
pectation of further advances than
existed in October, 1915" Natural
~. The higher prices 20 the higher
they may be expected 10 20. II is
easier 10 imagine wheat at 50 a
bushel than at so cents again. These
are gold prices that are rising so
fast. That is the extraordinary
thing. In Europe, where goods are
Increasingly priced in paper and in
this country, where they are priced
in gold, the phenomena are identical.
There is in one place paper imitation
and in the other gold imitation, and
i comes 10 the same effect.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
Relevant
Information

Rock Island. Transactions in Rock
Island yesterday aggregated 10000
shares. or about one-sixth of the total
turnover of all stocks on the exchange.
It closed at 347s, with a net gain OF
III points. The road has been in re-
ceivers' hands since April, 1915. Three
plans for reorganization have been
promulgated, none Of which has proven
acceptable to the several interests. The
Peabody committee, representing the
first and refunding mortgage bonds,
has already filed foreclosure bill and
no answer has been returned 10 date.
A member of this committee said yes
terday that he considered prospects
GOOD for a harmonious settlement oil
the differences of the various interests,
but thought a foreclosure necessary
to n satisfactory reorganization. 1t has
been intimated that the Peabody COM
mittee might be willing to recede from
its stand under certain conditions in
assessment Of from $50 to $50 on the
stock has been proposed. Some of the
interests believe s30,OOO,000 will suf-
fee to put the property on its feet,
and others want s4O,OOO,OOO and even
100000 900. Rock Island has about
s1s,OOO.O00 OF floating Indebtedness.
Its bonded Indebtedness totals $685.
$4,000. The company's earnings have
been steadily improving. In the fiscal
wear ended June 30 last gross amounted
to s75,3i6,967, against s7o,947,SsO in
1915, and net amounted to 1893 per cent
on the S74,4S2,52 OF stock outstanding,
against nothing in 1915.
Denver & Rio Grande. the
common and preferred issues of this
road were strong yesterday, the for
mer moving up 4ls points and the lat
ter 37s. The preferred was very ac-
tive. with a turnover of $4,000 shares
No dividends are being paid on either
class Of stock. The last disbursement
on the preferred was pa per cent, in
1911. The company's earnings have
undergone remarkable improvement in
the last year. In the year ended with
June net earned on the preferred was
the equivalent of 6.73 per cent, against
1.SS per cent actually earned in 1915.
This is a Gould property and controls
the Western Pacific, low grade line
running from Salt Lake City 10 San
Francisco. The Western Pacific only
recently emerged from receivership.
Pressed Steel Car.-Shares Of this
company, on which the directors in
creased the quarterly disbursement
from 81 to $3.50, declined IA points
yesterday. closing at 71fs, after an
early advance to 1888. There is sl2,-
500 900 of common stock outstanding
and like amount Of per cent cumu-
lative preferred. The company is now
paying the highest rate on the common
since 1900. From 1905 to 1913 nothing
was paid. In 1914 per cent was paid,
and in 1915 dividends were again
omitted on the common. The company
has been doing large war business in
addition to it's regular line of railroad
equipment. In June the directors an
Hounced the closing of a contract for
100000 she'll forgings. The company
has two plants in operation, one at
McKees Rocks. Penn, and the other
at Allegheny, Penn. Total annual ca
pacity is estimated at $50 passenger
cars, $4,000 freight cars and 10000
truck frames.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
Other Cities

Boston Coppers.-Boston, Oct. %
Prices of copper shares were further
pared of some Of their recent gains to-
day. Calumet and Arizona was an ex-
coption, advancing to 7sh. Closing
sales were irregular in tone. Copper
Range, 7Oh; Allouez, 6Sh; Old Do
miniOn, 69A.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26

tn 31.15 and Italian lire declined TO
$751;. Sterling rates remained IN
changed.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
New Haven Directors Criticised.-

New Haven Directors Criticised
New Haven, Conn, Oct. 25.-No change
in the directorate was recommended to
the stockholders Of the New York, New
Haven e. Hartford Railroad at their
annual meeting here to-day. The bust
ness before the meeting included con-
sideration of the annual statement,
action on the proposal to issue 100000
seven-year debenture bonds, to erect a
new station at New Haven and to elect
a board of directors.
Criticism of the management was
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26
Wednesday, October rs, 1916

In another column will be found
an official statement of the reasons
for bringing out at this time an
other British loan. They are eX-
traordinary. This will be curious
document for the financial historian
to read. The British government
does not Immediately need the
money. but interest rates in this
country are so low and the difficulty
OF employing bank balances profit
ably is so great that it has
teen prevailed upon by Its
American financial counsellors TO
allow s3OO,OOO,OOO of British credit,
secured by collateral, to be sold
ct 51z per cent. The last col
Literal loan, issued in August,
tore per cent. The purpose OF the
American bankers is to cure the pre-
vailing ease of money; that is, to
advance, if possible, the prevailing
rate of interest, whereas obviously
il is to the advantage of the British
government, as borrower, to keep
the rate of interest prevailing IN
this country as low as possible. That
i. why it has been sending so much
gold to New York, faster than 1t
was required or wanted. And now
we come to the real reason. In the
last paragraph of the official state
ment referred to you will read:
The British Treasury has OF late
renewed its shipments of gold to
this country upon a large scale. This
Continued influx of the metal has
caused some concern in the banking
community, and it is believed that
the issuance of the proposed loan
will tend to cause at least a tempo
rary cessation of gold imports.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-26

w nat mas HdppeHSu ID Aoll4g wv
cent. Control of American credit
has been restored to American
hands. The British Treasury has
been prevailed upon" to accept
"views" which it was time some
body had begun to insist upon. We
were in danger of becoming a dump
ing place for gold, though it
swamped us. We have inadequate
resources against credit imitation
arising from an over-supply Of gold.
There is no scientific way to i'm
pound gold. 1t goes into bank re-
serves and becomes the base of new
credit. Great Britain has been able
to force credit initiation upon the
country by delivering enormous
quantities of gold into it. This 1t
has been to her interest to do, as
buyer and borrower. She has
furnished gold enough to carry
her loans in this country at lower
rate of interest than she pays at
home. Banks have been unable to
check the extravagant use of credit,
for they have been powerless to
control the rate Of interest. And now
at last notice has been served upon
the British government that we wish
less gold in order to regain COM
rand of our own credit. The seller
end the lender have something to
say as to the terms and character
of payment. People cannot without
disaster to themselves go on ex-
changing goods for gold in a one
sided manner. Scandinavia ha. had
to refuse gold. Her people were
selling their goods away for gold
and prices were rising uncontrol-
lably, partly as a result of the scar
city Of goods and partly because of
the gold initiation. That is what has
teen taking place here. And that
i why j. P. Morgan & Co. haze in
sisted upon bringing out a British
lean at 515 per cent. 1t is an
achievement on which they deserve
to be congratulated.