The sun., 1916-11-20

stance. 10 to be restored to the stock
ffolders on an assessment $50 q share
less than was not long ago thought nee
essary by holders Of the senior bonds.
The old standard railroads are buying
equipment at high prices and doing
whatever Ia possible to prepare them
gestion, but they are Offering few Sc
curities. BY virtue Of the record earn
ings OF the past year they have been
able TO pay OF bank loans, to retire
many short term issues Of notes and
otherwise for the first time In their his
tory to finance themselves.
Earnias II Per Cent.
New York Central IL earning Is per
cent. on its stock. There Is a likelihood
that the dividend will be increased to 8
per cent. at the meeting Of the directors
next month. But In the stock market
the company Is losing ground. Its POSI-
ton In the market Is typical Of all the
other seasoned rails. The income re-
turn. seemingly assured. Is much higher
than the prevailing interest rates on
money. Seemingly there Is no demand
for the stock for purposes Of speculation
and little for investment.
n eight hour law. the chance Of
costly freight congestion, more serious
even than that of last winter. when
many roads with record gross earnings
reported decreases In net. and the Con-
gressional Inquiry into railroad problems
are commonly suggested as reasons for
the apathy Of the specializing and in
vestment public toward railroad securi-
ties. now hat foreign liquidation Of
these securities Is no longer formidable.
Yet tho determination with which the
railroads have recently proceeded to
test the Adamson law. the forbearance
counselled upon the labor unions by
President Wilson. the organisation OF
business men in . solid body to support
the railroads In their contest AGAINST
coercion by labor and the Congressional
Inquiry itself hold out hope Of fair soiu-
ton OF the railroad problem.
mystical valuation is considered BY
nosuie critics essential before railroad
questions can be fairly settled, Physical
valuation under the Interstate Commerce
Commission Is progressing and It's re-
suits up to the present have not been
disappointing to holders OF securities.
Tn early hearings before the Con-
gressional committee simply demon
strate that as much thought and re-
search must be devoted to problems of
r~ailroading as were given to the currency
by the Aldrich commission. The work
OF mat commission resulted in the Fed
sral Reserve act. All railroad executives
are hopeful that the present investiga-
ton OF ~railroadinG will broaden out, as
was desired by President Wilson in his
message to Congress last December. and
cover the field As broadly and with the
same equitable results as were secured
by the National Currency Commission.
Competition for Foreign Leans.
In the bond market the great develop.
ment OF the week was an outbreak OF
competition for foreign Government and
municipal loans. When the $500. 600. 900
Anglo-French loan vas brought out. the
West would have little to do with II.
The loan was criticised as a means OF
prolonging the war. while as a matter
Of fact its principal purpose was the ex.
tension OF credit TO this country's hest
customers.
Last week Chicago Unexpectedly an.
peared as the purchaser Of Chinese Gov.
eminent bonds and as the bidder for
$75.000.000 Argentine bonds. At the
same time two New York banking syn.
dicates were bidding for the Argentines
A loan Of $50. 900. 200 &c Russia was fol.
lowed within a day by the conclusion OF
a loan Of $50, 900. 900 to French munici.
p%alities. Obviously the proposition tina,
We must give credit or stop selling
which was FIRST enunciated at the time OF
the AnElo-Fren m loan negotiations. Is
now we'll understood the country over.
Invisible Balance Of Trade.
In the years before the war IL wa.
commonly estimated that normally his
country spent In or sent to foreign coun
tries $500. 900. 900 (which was not includ.
ed In the Governments statements oil
exports and imports. This unknown
trade was composed Of expenses OF
American tourists, interest and dividend
on American securities held abroad,
payment to foreign ship owners and re.
mittances by residents here to relatives
abroad. A prevalent estimate OF the
amount paid abroad In interest and
dividends was 5000 00. 900.
Now II Is high banking opinion tina,
this sum has been balanced By thu
amounts that foreign Governments
provinces. dominions and m%unicipalitie,
have obligated themselves to pay hi.
country in interest as well as by the re.
purchase Of American securities from
foreikh countries. The development OF
American shipping, illustrated brightly
last week by the acquisition OF the New
York shipbuilding Company by the
American International Corporation
also mean a decrease In the debit bal.
ance of this invisible trade. Tourist
travel, now practically suspended. will
Of course. take hundreds of thousands
OF American dollars abroad after the
a But with further loans to foreign
Governments and further development,
Of American shipping. prospects are
bright that the country's position as q
creditor nation will long be secure.
Nation Making No History.
Prices Of raw materials are high al
most withous exception. The advance
In steel prices last week must have EN-.
barrassed some manufacturers who have
war contracts on their hands. and other
manufacturers. in the motor trade. fol
example. who have fixed the prices OF
their products for 1917 delivery, Even
tually the advances In prices will reach
the safety point n consumption viii
decrease. But the advances In steel
copper. grain and cotton have supplied
no indication that supply has begun to
overtake demand.
In all trades labor Is abundantly EN-,
ployed and employers are confident and
enterprising. Money IL plentiful thu
country over. II is seeking lnves; ment
reasonable enterprise does not ave &c
look for II. With the Presidential cam
paign over. internal troubles and alter.
cations are insignificant. They are a
any rate nothing as compared with thu
strife abroad. Prosperous as never be
fore, the country's position well Illus
trates Montesquieu's saying: "Happ,
Is the nation whose annals are dull