New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-03-13
REVIEW OF THE
FINANCIAL WEEK
Stocks Rise in Spite of
Uncertainty Over New
Submarine Plan.
CRISIS IN MEXICO
BRINGS NO ALARM
Firmer Tendency In the Money
Market-OermaH Exchange
at Great Discount.

Uncertainty as 70 what was 70 come
out Of our controversy with Germany
over rights Of armed merchantmen and
"a TO the result Of the attempt TO
break through the French lines az
Verdun held securities more or less
in check last week. In spite Of this.
and with continued dlsinclination Of
the purchasing public 20 enter the
market, the course OF prices was up
ward. A good many weak accounts
had been cleaned out, the market was
pretty well liquidated, and holders
found Il easier to put stocks higher
than lower.
Dealings were principally Of pro-
fessional character, With trading con-
centrated each day IN few specula-
tive issues. Railroads and standard
stocks in general were rather quiet but
fairly Arm. As the week went on II
began to be felt that this question OF
submarine attacks without warning on
armed vessels might be expected 70 take
its place along with earlier disputes
"a subIect OF interminhble Discus
sion. and less attention was PAID 70
Washington dispatches on the subject
There remained, however, sufficient rea-
son for caution 70 mako the end OF
each session largely devoted 20 IN
doing commitments made earlier that
day. News Of furious lighting around
Verdun and reports Of sally by the
German feet into the North Sea were
additional causes of hesitation.
The raid across the border by villa
and his bandits brought the Mexican
problem into prominence and rather
overshadowed European questions
toward the end Of the week. There has
long been expectation that we should
have 20 intervene in the affairs OF the
troubled country 10 the south ever
since the Administration refused 20
countenance Huerta, The possibility
that our attempt to punish Villa and
his men might bring on such interven-
ton was considered calmly. There was
q brief upturn in stocks Of companies
with interests IN Mexico and the rest
Of the list was undisturbed.
New International Financing.
In bonds, business on the exchange
and over the counter was net large.
Prices were steady, dealers not beng
inclined 20 press offerings on the mar
ket. In the bond distributing houses
there is expectation OF considerable
business before long in new issues.
Securities of recognized railroads are
soon to be put out, and a good deal OF
international financing Is 20 be done
between now and summer.
Loans Of the belligerents viii be
offered on terms calculated TO make
them readily marketable. This means
high rates of interest and compare
lively short maturities. In addition
with the lesson of the Anglo-French
notes in mind, our bankers are insist
ing that future loans be secured by
collateral. There is comparatively lit
tie financing 10 be done by domestic
CORPORATIONS. What is needed will be
asked for; unnecessary loans will be
postponed.
Funds for investment are ample.
though there IS still some hesitation
about buying issues maturing long
while ahead, except where these are the
underlying obligations Of well tested
corporations. The market for tempo
rary accommodation WAS comparatively
firm last week. Interruption IN the
stream Of gold from the other side and
the great expansion In banking loans
have meant little less liberal Offering
of funds. Call loans were renewed on
Wednesday and Thursday at "a per
cent, where had previously been the
highest of the year. Time loans on
stock market collateral were made at
rates practically unchanged, but here,
too, there was q tendency on the part
of lenders TO withhold supplies.
More Demand for Loans.
Commercial paper Of tho best grade
Is 80 scarce that there has been no
material change IN rates. A number
OF lending institutions. however, have
announced that they are no longer in
terested IN any paper that does not
pay at least 8i2 per cent. Mercantile
borrowing is on q little larger scale.
In some commercial banks new loans
made last month we're 80 per cent
larger than those maturing. This new
total was accounted for by renewals.
new borrowers and return OF borrowers
who had not asked accommodation for
some time.
Payments here for war supplies have
| been diminishing in many lines. The
scarcity OF material and the advance
/ in prices have meant urgent purchasing
/ for cash. and this has brought greater
call on the banks for funds. The grow
/ ing volume of trade IS az last making
itself felt In greater demand on the
money market.
All this, however, means better en-
ployment Of funds rather than any i'm
portant advance In rates. The Federal
/ Reserve system. with its lower cash
requirements against deposits, has re
leased an immense amount Of banking
/ credit. Rcdiscount facilities At the
/ regional banks stand ready 10 prOvid de
ample accommodation. and this great
source OF supply prevents any material
rise IN the price OF credit. In their
effort 90 provide some use for their
resources tho regional institutions
7 .,x-w.tfscvo g or,..f1