The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-02-25
Business and Finances

purposes or>comparative periods is as
| follows:
This Last Last
week. week. year
Az. 20 railroads ..1024l 1926 o092
Az. II industrals 1880 1901 77.5l
This shows in increase of 1lH
points, or nearly IS per cent, in the
railroads, which must be considered in
the light of fairly steady market for
railroad securities; and of Nv points
or 81 per cent, in the industrials. re-
flecting to large extent the tre-
mendous increase in the earning
capacity of our giant corporations. In
individual instances. such as Bethle-
hem Steel, prices have, advanced from
100 to 800 per cent while in the
stocks of such corporations as West
ern Union and American Tel. and Tel,
the normal and logical effect of even
ly distributed increased earnings, with
reasonable expectation that this in
crease will be a permanent feature,
has been reflected in a market appre-
citation of from 10 to 80 per cent in
stock prices, with an ever-increasing
clientele. Those who are best able to
read the signs of the times are firm in
the conviction that, though there are
exceptions to every rule. the present
values of Americas sterling security
issues are amply justified by the In
trinsic value they represent.
Money and Imitation.
Fl ON the second annual report OF
the Federal Reserve Board. to hand
this week, we learn that the total cir
culation of reserve bank notes in the
United States, as of December 81,
1915, amounted to $188,817,O00. The
Reserve Board has had a total of $780,
100000 of these notes prepared and
ready for issuance so that "the country
may be prepared against any contin-
gency." OF these $188000,00O in cir
culation, only $16,675,000 were secured
by deposit of commercial paper, the
balance being safely stored away in
the treasury vaults.
Another effect of the introduction of
the federal reserve system was to re-
was required to be held in the vaults
of the banks Technically known as
legal reserve), and thereby increasing
credit available for commercial uses.
Nuu W tHCSC lHS great dHlOuHt VI ROlu
imported into the United States from
Europe during 1915, estimated at over
$4O0,0O0,O0O, and we have very salts
factory explanation for the compare
lively excessive supply of loanable
funds in the banking institutions of
the United States at the present time.
Prominent bankers are of the opin-
ion that this redundancy in the money
market will not last much longer, but
that in short time the demands Of
the commercial community will be
such that large percentage of these
loanable funds will be called for and
that consequently money rates will be
on the ascent
A Middle Western banker of Ma
tional prominence said this week: en-
dications multiply to warrant the be-
lief in a material betterment of money
rates about March. Country banks
will want balances and will be slow to
return money to reserve centers. Set
Elements in farm mortgages are made
about that time and crop necessities
will be large. Country de-
mand will not be sufficient to ma
teriallv lower reserves, but with |
gradual business expansion keeping
even with growth of deposits, this ele-
ment will remove top of surplus and |
leave the banks less willing to bid |
against each other for commercial |
paper. Business everywhere is better
and improving. and with the rule that |
deposits drop off and the demand for
money increases in March, | am con-
1inced that better rates are in sight,
although normal rates are not pos
'ible."
Railroads Prosper.
Railroad prosperity is further re-
iected in the February | statement of
he American Railway Association on
he number of idle cars on the rail-
Dads of the United States and Cana
ida. One group of roads reported a
urplus of idle cars. as of February |,
IN bunting to 52,449 cars. Another
,roup, however, reported shortage
to 30,o64 cars. Thus there
vas net surplus on February | of
l ,4S5. The net surplus reported to
he, association since November. 1913,
nd represents a decrease of more
han SO per cent compared. with the
anuary | surplus, A significant part
i the report is that it shows a net
heritage of box cars, as of February
amounting to 9,4l6 cars. This com
ares with an actual surplus in this
of 1891 cars on January
st. 1t is probable that poor track
ABILITIES. due to snow and sleet, had
onething to do with the movement {
t cars. The statistics indicated a I
reater movement OF coal cars and this
hight be attributed to a concerted {
Ian OF storing coal in preparation for ,
strike at the mines.
w. S. COUSINS,
Editor, The American Banker.