The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-05-12
.Business and Finances

The course of the stock market in
recent weeks has been somewhat
puzzling to those who consider them
selves quite astute in the art of pre-
dieting the effect of certain influences
upon the speculative list. The same
argument that seems one day effective
for a market rise is as eloquently
brought forth OH the morrow as the
explanation for violent downward
plunge; and in many instances the
seasoned trader has been decidedly
outwitted by the comparative stranger
to the stock markets. The present
tendencies, however, are for moder-.
ate swing in one direction, followed
by an equal reaction, and followed as
keenly by the general public as by
the professionals
There has been disposition in
some quarters to go to extremes, but
these tendencies are very abruptly
checked when the course of the mar
ket runs contrary to the ideas OF those
who must back their judgment with
good money. The handsome profits
that in a few cases have been melted
out to successful spectators have
helped to spread the contagion OF
speculation, to the evident sorrow OF
many who have not been SO shreWd
as they might wish themselves to be.
A Western authority states that
"adventurers from the Pacific Coast
who have ventured to the Atlantic sea-
board report a saturnalia Of money
making and money-spending in East
ern centers. with prosperity perching
upon the shoulders alike of the great
and the lowly." This is hardly cor
rect diagnosis of current conditions,
Notwithstanding that it is partly true.
Many have found only disappointment
where great gains were anticipated.
The leading brokers and bankers in
New York are advising extreme eau
ton for their clients as far as the
stock market is concerned; and the
safety first" slogan is. more popular
one than the get rich quick" Illusion
among seasoned investors. Notwith-
standing the unusual activity OF the
stock market in recent months, IT is
found by examining the records that
the average of the leading industrials
has declined points in the. tour
months since January first, whereas
in the same period last year it ad-
vanced l2H points. This is rather
remarkable in view of the extraordi-
nary growth and expansion OF COM
merce and business in that period.
Railroad Earnings.
The largest earnings in the history
of two of the standard Eastern trunk
lines, the New York Central an! the
PENNSYLVANIA Railroad, were disclosed
when the March figures were reported
this week. The gross earnings OF
each system increased nearly $4,000, 900
over the figures for March, 1915.
For three months of the current fiscal
wear the increases in gross over the
corresponding period of lois were ga
10000 for the Pennsylvania and 81
$4,000 for the Central. New York
Central alone showed increases OF
$4,l34OOO gross and $2,287,O QUO in
net for March and increases OF SILL
100000 in gross. and 900 in net
for three months. On all lines in the
Central system the increase in March
net was $4,837 600 and in net for three
months $l5,280,C00 For the lines east
of Pittsburg and Erie the Pennsyl-
vania statement showed March IN
creases of $5,0o6,0O in gross and W
100000 in net. On the lines west the
increases were $2,97o, 444 in gross and
$l,l46,OOO in net The net earnings
on the lines east and west were 81
$4,000, a gain of $3.S45,0OO over
March of last year. For the first
three months Of the current year the
lines east and west showed net earn
ings of $40, 1888, 900, an increase OF $!Z,,,
$4,000 over the corresponding period
of 1915.
These Highly favorable conditions
are the result OF two factors, both OF
which may be counted on as perma-
nent features in railroad financing.
The first is the tremendous increase
in domestic traffic. and the second is
the more equitable treatment OF the
roads by the Interstate Commerce
Commission in the matter OF freight
rates. 1t is because of these condi-
tion. moreover, that the railroad Sc
curities have deservedly increased in
popular favor as prime investments
which are not subject to fluctuations
such as are experienced by the indus
trials.
Foreign Securities and Exchange.
Since the announced success OF the
British Treasury plan for the mobillza-
ton of American securities, no dith-
culty has been found in stabilizing the
market for sterling exchange. Quota
tions have not yet reached the 400
normal basis, but they are gradually
approximating that point,
il is understood that the French
Government is about to employ the
same method for steadying French ex-
Change; and that an appeal is to be
made by the Finance Minister to
French holders of securities issued by