The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-10-27
Business and Finances

New York, Oct. 2l.-The principal
money markets OF the United States
nave during the current week given
evidence OF a tendency towards higher
interest rates, thus fulfilling to some
extent the predictions made by. the
leading bankers in these centers. In
New York this change has been at
tributable to the policy of the larger
commercial banks to check the flood
of speculation which has been sweep
ing over the land and to substitute a
spirit of caution for the prevailing
recklessness which seems to have
taken possession of investors and
spectators alike.
The stock markets have been ex-
cedingly active, and have apparently
recovered from the shock which was
produced by the recent attack of the
German undersea boats. This incl
dent is now regarded as a character
istic indication Of the spectacular
methods employed by the Central
Powers, and to have no further sig
nificance. Wall Street operators are
somewhat puzzled because of the non
appearance of the regular prediction
slump, but so far as can be learned,
it is doubtful if stockholders in gen.
eral are giving themselves any con-
Germ over the outcome of the election
next month.
Quotations for high-grade bonds re-
main firm, and investment bankers re-
port an increasing inquiry for good
securities. In fact, it is stated that
they are unable to supply sufficient
bonds to meet the public demand, and
were compelled to bid above the mar
ket for any substantial amounts de-
sired by individual investors. In view
OF the excellent demand for securities
of foreign governments. it is safe to
predict that shortly after election
there will probably be another offer
ing of British notes in this country
secured by the deposit of substan-
tial amount of collateral, as was the
case with the recent $250,00O, 600 is
sue. 1t has been pointed out that a
considerably larger amount could
have been disposed of when the Brit
ish notes were offered, because of the
safety of the notes as an investment
Institutions and investors alike
throughout the country were eager
participants to the offering, the entire
amount having been subscribed well
in advance of the time proposed for
closing the subscription books. e
This weeks sensational advance in
the price of grains has been laid pri-
marily to the announced plans of the
British and Allied governments to
purchase wheat jointly from every
available source, and to cut the freight
rate from he to Sc bushel. This
report on the reduction of freight
rates is the sequel to rumor that
has been current for some time that
Great Britain would take control of
all British ships needed to carry wheat
to the Allies. Wheat prices are now
SO cents bushel in advance OF those
which prevailed at this time last year.
Liquidation of Steel Stocks.
From a new series of records made
public this week it is evident that for
eign holders of United States Steel
stock have seized the opportunity of a
rising market to liquidate a large
amount of their stock; and by so
doing they have reaped very salts
factory profit The total amount of
the corporations stock held on Sep
TENDER 30 last was $4,000 shares, a
decrease of 87,445 shares, or IA per
cent. since June 80.
On March 80, 1914, a few months
before the outbreak of the war,
Europe held l,285, $50 shares of United
, States Steel common, so that nearly
90 per cent of foreign holdings have
been liquidated in the interim. Com
pairing the price which obtained at
that time, SOS share, with. the recent
high points reached during September,
there is shown an increase of nearly
100 per cent in market value. The
preferred stock also shows heavy
liquidation, having decreased from
3l2,73o shares on June 80, 1916, to
l4l, 73o sares on September 80.
The action of the steel shares con-
firms the oft-repeated maxim that the
public is always ready to sell stocks
on rising market. Stock Exchange
records show that on the last day of
September 55.67 per cent of the
steel common" was registered in the
names of brokers and professional
traders, compared with ST. three
months previously. This indicates
that nearly three per cent more stock
had gravitated to Wall Street in the
quarter than was held in the great
trading center at the close of June.
No Dangerous Initiation.
While many leading bankers and
business men have been sounding a
warning against the present tendency
TO initiation, they are in general agree
ment on the point that there is no i'm