The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-07-07

institutions tor loan which may
eventually aggregate $25,00O,OO0.
Should this loan be consummated, the
proceeds will be devoted exclusively
to industrial developments, and will
provide American investors with a
new interest in the prosperity of the
Far East.
1t will be remembered that in the
closing months of the Taft Admins
tratlon preparations were made for the
advance of upward of $lO0,OOO,OOO to
China by Great Britain, France, Ger
many and the United States. The
American allotment was to have been
supplied by group embracing the
National City Bank, First National
Bank, J. P. Morgan & Co., and Kuhn,
Loeb & Co. Japan and Russia were
later admitted to participation, and a
SlN-Power loan was almost completed
when the American participation was
cancelled because of the disapproval
OF the new administration at Wash
ington. The other nations finally
dropped out and China's finances,
which were to have been reorganized
and put upon stable basis, went from
bad to worse with the failure of
Yuan Shi-kai to hold his people to-
gether.
Investors Harvest
July is the American investors har-
vest month, for not only do a large
percentageof the monthly and quar-
terly dividend and interest payments
tall due this month. but the semi
annual disbursements are made as
well. The annual compilation of the
Journal OF Commerce shows that dur
ing July total of $2o2,372,540 will
be paid to investors, representing di-
vldend and interest disbursements by
railroad, traction and industrial cor
porations, the National government
and the City of New York. This is a
new high record total for this period
and compares with $40, 27O,86 in the
same period last year. The sum OF
SlO7 ,7o2, $40 will be distributed among
| stockholders in the way of dividends
as against $94,2l0,862 in 1915. Of this
$59,o27,734 comes from industrial com
panies, $2S,l34,796 from railroads
$l2,250,O2O from street railroads and
$7,75OO0O from banks and trust COM
panies. This gratifying showing is
due to initial payments or resump.
tons, increases and extras by cor
porations representing many indus
tries such as munitions, explosives
steel, oil, copper sugar, steamship
automobile, dyestuffs, chemicals and
textile. Some railroad and public util,
ity corporations will also make larger
payments to stockholders next month
Interest payments will approximate
$1S4 100000, against $l7o,0OO,00O in
1915, new bond and note issues ex.
planning the increase. Industrial anc
miscellaneous issues account for $42,.
100000 railways and street railways
$137 100000. Government and City
A,31OO00.
Interest on Government Loans
Just now it is of great interest tc
recall the fact that when Great Brit
ain and France sought to borrow {
billion dollars in the United States
the governments of the allies coulc
only obtain half billion and that the
bonds, on which the interest rate wa!
per cent, had to be sold at o6H
These conditions made the interes
rate a little over per cent and tn,
conditions of the loan caused grea
surprise in Great Britain.
Today, when war with Mexico i
about to break out, it will be neces
sary in a few months at the most TO
the United States to enter the none.
market and make a loan of severa
hundred million dollars. In this con
nection it is very significant that TIL,
former forecast about the permanent,
of high interest rates has been dis
proved by events. Early in the Euro
pean war when the City of New Yorl
offered a bond issue it was obliged t.
pay AZ per cent.
AT this moment there is no lack O
money for loans on bond and mort
gage at the low rate of Az per cent
AS might be expected, the govern
ment can borrow money at a lowe
rate, and it is announced from Wash
ington that if any new bonds are is
sued they will bear per. cent inter
est at the most.
From the viewpoint of the nation
money is as cheap as it has been a
any time in a dozen years. The elias
of investors by whom these bonds vii
be taken is not the same as the pur
chasers of the Anglo-French wa
bonds These American securitie
will be taken by an army of sma
investors, who above all things, dc
sire something permanent and absc
lute1y safe, and are not seeking (
obtain higher rates coupled with tn
element risk.
These facts seem surprising i'll vieN
!. of what was conhdentially forecaste
in the high financial circles in the at
tumn of 1914. At that time it wa
confidently asserted that 3 per Ger
money was thing of the past, an
that ot the close of the war the rat
of interest would be higher that whe
peace is restored the interest raj
: Twill go back to the old level. and tn;
: as far as the United States is COZ
t ccrncd, money will be abundant an