The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-06-23

been such appreciable demand for
loans as to occasion any advance.
Farming communities have had sutfl-
cient funds to meet their require
ments thus far, and with respect to
manufacturing lines cash returns are
fully commensurate with meeting pres
ent needs. St. Louis and Kansas City
banks report a good volume OF clear
ings for the first week of the month,
deposits are fairly we'll maintained, but
requirements for loans are of moder-
ate proportion, whereby rates remain
unchanged on time loans at to AZ
per cent.
A marked Improvement is also to b,
noted in business conditions in the
Southern states. due to many causes.
but chiefly to the high price of farm
| products and the excellent recovery in
the cotton situation. The reation
from the serious depression following
the opening of the great European
conflict has been complete, and heavy
| demands are coming both for the
| products of the soil and for those of
the mills and the factories, so that
there is plenty of employment for all
The better demand for cotton at
higher prices has had the natural eff
feet of encouraging the expansion of
the cotton acr age. Due, however. to
the reduction in the supply of fertiliz-
ers, it is doubtful if the yield will be
very much larger. Need for diversifi-
cation of crops has been a lesson from
the European war which is quickly be-
ing learned. In many sections of the
south there has been a notable increase
in the production of grain and other
food products, and the conversion OF
these into bacon and beef A greater
variety of output, the most progressive
farmers believe, will forestall recur-
renee of the acute depression following
the beginning of the war, when cotton
fell below the cost of production.
Foreign Loans in New York.
The past week also saw the consum>
nation of the negotiations with New
foundland and Russia for new loans in
this market, and public offering has
already been made of the Newfound-
land loan.
| A syndicate of international bankers
headed by Lee, Hipginson & Co., and
VIM. A. Reed & Co., has purchased
from the Newfoundland government
| $5,000,0OO of three-year per Cent gold
| DOiiuS, udlCu jury 1, lI1O, dllu ult uly
|, 1919 This is the first time this terri
ton outside the British Empire. and in
fact these bonds are the only direct
funded obligation of the government
| of Newfoundland, outside of the en-
pire. While not part of the Domin-
ion of Canada, its territory is contigu-
Gus thereto, and it is the oldest of the
English colonies.
| A powerful banking group in New
York has also closed negotiations with
the Russian government whereby a
credit of $50,O000O0 will be supplied
for the purpose Of purchasing supplies
for this country. The terms of this
credit. according to official announce
ment, is as follows: The Russian
government will Immediately estab-
fish in Petrograd credit of 100000
600 roubles in favor of the American
bankers, the fixed ratio of exchange
being three roubles to one dollar. The
Russian government will pay Ga per
cent interest, both the principal and
interest being payable in New York
in dollars The American bankers
have also the option to purchase with
in three years 5H per cent Imperial
Russian government bonds at ga 3-4,
less a commission, the bonds to run
for five years from date of purchase,
the principal and interest being pay
able in New York in dollars.
The plan contemplates that the Rus
sian government shall receive one-half
of the profits arising from the possible
exchange profit in the rouble credit
w. S. Cousins, Editor The American
Banker.