The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-04-28

price OI any "a per cents ever SOlQ
by the city. The so year bonds yield
a net income of AS, and the serial
bonds of fraction over per cent.
The largest block, aggregating nearly
forty million dollars, went to bank
ing syndicate headed by Kuhn, Loeb
& Co.
The rising prices of New York City
bonds may be attributed to two fun
damental causes: first, the broadening
demand for investments of the higher
grade, and second, the>increasing pop
ularity of New York's 'pay-as-you-go"
policy in municipal finance. There has
been a signal improvement, not only
in the basis of expenditures for public
improvement, but also in the admin
istration of public moneys, and these
have been important features in the
citys credit position. Last year the
comptroller's Office inaugurated the
new method of issuing bonds on the
serial maturity plan, an obvious adj
vantage from every standpoint. The
success of the city sale is one more
evidence of the fact that there is
healthy demand for high grade invest
ment securities, and that the obliga-'
tons of our municipalities have not
lost their popularity with investors,
but on the other hand are increa singly
sought for.
Increase of Wealth.
One of the most reliable sources Of
financial and business information is
the private correspondence files of a
metropolitan bank or trust company.
These institutions, with lines running
out in every direction through the
medium of their country correspond
ent" banks are kept in constant con-
tact with local and peculiar business
conditions; and by the relation Of the
interior banks to the loan market, are
able to guage, with fair degree of
accuracy, what conditions prevail in a
given locality. 1t is not always that
this information is freely accessible
to outside agencies, but quite often the
confidential reports thus obtained are
tabulated and compiled, and when is
sued they constitute an accurate ba-
rometer upon which important trans
actions ma with safety, be based. A
particularly valuable and timely re-
sumo was issued last week by the Me-
chanics and Metals National Bank OF
New York, one of the large and pro-
1
York financial district.
Referring to the phenomenal in
crease in the wealth of the United
minded of the fact that means to en-
ploy these riches have been found in
many ways. Part of the new wealth
has been employed in buying back
American securities that were offered
from Europe. Another part has beer
made available again to Europe, ir
the form of loans and special credits
Another part has been lodged in bank
vaults in the form of imported gold
and it would have been notable de-
parture from all human experience i
the lending facilities which this new
gold gave the banks had not beer
drawn upon, to some degree, by manu-
facturers and merchants seeking to
benefit from the active trade condi
tons of the United States. Particu
larly would it have been strange i
borrowers had withheld their demand
in the face of decline in interes
rates to levels which had not beer
seen before in 20 years, save for oc
casional short intervals. Yet, withal
excessive borrowing has been held il
check
Prices and Prosperity.
1t is easier to talk about prosperit,
than it is to have it. 1t is far easie
to dream about profits than it is t,
make them. An old saw is to the eff
feet that if wishes were horses, beg
gars might ride. These three state
ments find striking illustrations in tn
present business situation. The coun
try is not through talking about tina
universal wave of prosperity which
inundating the United States befor
the tune changes its key and there
new ingredient which is more or les
discordant with the previous pleasin
melody.
The war. about which the countr
is hearing so constantly, is drivin
prices upward to such an extent tina
some of them are distinctly prohib
tive. 1t may not concern the countr
generally to know that building opera
tons in New York City are bein
crippled by the ever-rising prices {
materials, and especially architecture;
iron. What is happening in the me-
ropolis. however, is affecting othe
cities so that the phenomenon is M
tionwide and not purely local.
Newspaper publishers are being h
hard by the rapid and violent rise
the prices of all kinds of paper and {
everything used in the production {
periodical publications, from dailies t
monthlies and quarterlies. This diff
Guilty also extends from ocean to ocea
and affects every newspaper from til
big dailies in the cities to the littl
weeklies in the remote villages in til
country.
Of course, there is cause for a
these things, but the cause has
variety of explanations. The manufa'
turers and dealers of the articles
question say that the cause is til
war. while others declare with gre;
vehemence that the market is bein
cornered by the big fellows, and tn;
they have been caught in the squeez
Whichever of these explanations
correct, and perhaps there is son
truth in both, the result is the san
for those who suffer by what is hal
IDan;pu and feel fh etp alvae taken