The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-07-28

New ork, July ZZ.-All indications
point to the fact that for several weeks
past the New York stock market has
been undergoing gradual readjustment
not only in its technical position, but
in sentiment as WELL Cold facts, which
have been brought to light by the Of
fetal reports and statements of many
of our important industrial corpora
tons, have necessitated an abrupt
revaluation of the stocks of these com
panies. In the final analysis, it is net
earnings which determine values, and
many investors who have apparently
ignored this important feature in
times past have learned some costly
lessons in consequence.
1t is very evident, also, that for the
time being the general public is out
of the stock market, and that the
price movements are the reflection OF
the contending efforts of professional
operators. The marine and motor
stocks have been weak and have
shown heavy reactions; the bulk OF
the war shares have been under heavy
pressure; the copper and other metal
shares have joined in the downward
procession; and still opinions differ
as to whether the selling movement
has yet spent its force. Prominent
brokers express the opinion that the
selling has been overdone and that
declines that have been scored are
not justified by the present condition
of things. There is no denying the
fact that the country is in very
prosperous condition and the feeling
tinue long after the declaration of
sc n nd,
tries would Immediately benefit by the
The war has brought about inflated
prices in many comm odities and these
high prices for raw materials are
tending to prevent legitimate indus
trial expansion. The railroads, for
instance, are not expanding because
they find the price of steel too high.
Other important industries are not ex-
banding because they believe they can
do so to better advantage after the
commodity markets have reacted, as
of course they will when the war is
over. In the present readjustment of
stock prices, it is evident that some
of the issues have previously been
selling at more or less inflated figures,
otherwise reactions would not have
been quite SO sharp as they have been
The feeling prevails to large extent
that the war will not run into the COM
ing winter and, as very few additional
war contracts are looked for from
now on. it stands to <eason that the
interest will shift more and more
away from any stocks whose profits
are even not directly based upon war
contracts.
New French Loan
Participation in the new one hum
dred million dollar French loan has
been extended on a broad scale to
about twenty bankir houses in five
of the leading money centers of the
United States, and through them to
American investors, by the public sale
of the notes of the Amc~;--' Foreign
Securities corporation w''~N receives
and holds in trust the collateral put
up by the Republic of France. Unlike
the former loan to the French Gov
eminent, this loan is based upon the
deposit of excellent collateral, includ-
in the Government securities of Ar
gentina. Sweden, Norway, Denmark,
Switzerland. Holland, Uruguay Egypt,
Brazil, Spain and the Provinceof
Quebec in Canada. in addition to those
of Spanish railroad companies, Suez
Canal Company and various American
corporate issues
The notes are offered to investors
at 90 and interest yielding an income
of about So per cent, and constitute
one of the best and safest forms of
investment available for public invest
ment.
More Gold Imports
Heavy gold imports arriving in New
York from London-directly and in
be considered the most
important feature of the financial sit
uation. The indirect" importation is
that which comes from or through
Canad, and includes that which was
formerly stored at Ottawa by the rep
resentatives of the Bank of England
and that which was brought to Halifax
by British ships and forwarded by
special train to New York. One CON
signment on this style last week |
to $20,O00,000.
1t is conservatively estimated that
since May lst the British Government
has shipped into this country approx
mately $20O,0OO000 in the yellow
metal. Even with all this, New York |
bankers are of the opinion that the |
has by no means reached !
its climax, and that as much more Of |
the precious metal will reach us from
foreign ports. When we consider the
fact that since the war in Europe be-
gan the gold reserve of the German
increased 81 per cent, of
the Bank of England l35 per cent, the
Russian Imperial Bank 70 per cent,
and the Bank OF France IS per cent,
the manner in which Great Britain
and her allies have been able to mobi-
lie the vast amounts of gold for ex-
port is mater of surprise and ad
niration to our bankers. The tremen-
ious movement of gold in this coun-