The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-09-15
Business and Finances
By w. S. Cousins, Editor American Banker.


Reserve Board, are permitted to pur-
chase in the open market at prcferen-
Iial rates; the second class being
bankers acceptanccs which. not com
plying with all the regulations of the
Federal Reserve Board are not eli
gible for purchase or rcdiscount bv
the Federal reserve banks. The lat
ter class of bills will usually move at |
OF anywhere from IS to q |
per cent in the rate as compared with |
similar eligible bills, depending upon
names an maturities. There is also
a large volume of trading in other
classes, such as trade acceptances,
etc.
The acceptance business, being new
to the country, has none the less seen
a remarkable development during the
past year or two and for this the pass
age of the Federal Reserve Act is pri-
marily responsible.
Business Making New Records.
Business conditions in the United
States have been summarized from
special reports from the correspond
ents of the Continental and CONNER
cial National Bank of Chicago, the
largest banking institution in America
outside of New York According to
these reports, American business is
forging ahead in a way that is highly
satisfactory and indicates no decided
let-up, at least until hostilities in
Europe are checked pending negotia-
tons for peace. At the moment this
does not appear to be a possible de-
velopment of the immediate future,
hence the outlook is bright for CON
tinuance of industrial activity in this
country for considerable time. AS
to what will follow the war, there
seems to be a wide difference of opn-
ion, but the momentum that business
has attained in the last two years, and
will reach In the next year or so, is
likely to be sufficient to minimize the
REIMBURSEMENT that many astute bank
ers and business men believe will
take place. General manufacturing is
held to be profitable in all lines de-
spite scarcity of labor, higher wages
and higher prices for raw materials.
The labor situation affords most
perplexing problem at the present
time In some instances sufficient
supply exists to maintain the largest
output in the history of the country.
This is especially true in the steel in
dustry. But in those lines Of business
where the margin of profits is smaller
there is distinct shortage of labor
traceable chiefly to the fact that the
munition plants and others, which
have been reaping abnormal profits
from the export business growing out
of the war, have attracted workmen
from less rcmunerative fields. In
some sections of the country, especial
ly in the east, men formerly employed
in the agricultural districts, attracted
by the high wages, have drifted to the
ccnters where munitions are being
made. The chief 1aggards in the
business world are lumber and farm
implements. Lumber showed signs of
a decided revival in the early part of
the current year, but this squirt did not
last, owing largely to the inability to
obtain shipping facilities for our ex-
port trade. AS is we'll known, it is
the surplus product that affects mar
ket prices and with the expectation OF
lumber curtailed, necessarily the in
dustry as a whole reflects this con-
dition.
Subscriptions to British Loan.
What is said to be the largest sum
of money ever paid to a single private
bank or banking institution in this
country in connection with loan
transaction was the payment, ON
Wednesday of last week, to ]. P
Morgan & Co. in the total amount Of
$25O,O00,000 for the per cent two
year notes of the British Government
This most recent of British loans has
been one of the most successful of its
kind ever negotiated in this country
records having been established ir
several respects. 1t is recognized thai
the loan is the most attractive foreign
obligation ever negotiated, by reason
of the character and amount of col
lateral placed back of it. 1t is in many
respects a more desirable obligation
than either the Anglo-Frcnch $500,
100000 loan or the $l50,000,000 three
year per cent note issue of the
American Foreign Securities Com
pany, which was negotiated by France
a few weeks ago.
1t is stated that the .numbcr of small
subscriptions received from various
sources was unusually large, indi
eating high degree of confidence OF
the part of the American investing
public in the issue, Foreign securi
ties as a whole recently have becom,
more popular with the investmen
public and bankers entertain conf
dcncc in the outlook for such ISSUES
as may be put out in the future.
There are other foreign loan ncgo
tiations now pending and it is re
garded as likely that within a com
paratively short time some of then
will be closed. For some weeks pas
Russia has been comforting will
American banking interests for larg,
additional loan, but details are not we
available. According to reports th
amount involved is $l00,000,000. Sew
eral South American countries alsC
are endeavoring to secure loans in TIL
, American market.