Evening star., 1916-12-10


per cent net, would indicate that there
is little or no question but what the
regular per cent dividend rate will be
maintained indefinitely.
The president and directors of the
corporation considered the showing
satisfactory, because it came entirely
from the increased demand for the
monotype machines. and especially
from sales of the casting machines, all
large printing and newspaper oinees
doing away with the old-time distrlb-
uting and are casting new rules, etc.
for every issue.
Disappointed at High Rates.
Considerable disappointment was ex-
pressed during the last week when
money rates rose in New York city, on
call, to Is per cent. 1t was generally
supposed that the federal reserve sys-
tenn would stop all monetary trouble
and sensationally high rates for cash
through the enormous rediscounting
opportunities.
The high money rates were largely
the fault of the banks and partially
of the brokers and commission houses
on Wall street.
Many of the largest banks of the
country have not availed themselves of
the rediscount privileges offered by the
system; they have been so strong ana
money has been in such large supply
in every financial center and SO much
Of it seeking investment that they did
not deem 1t necessary. They Will PROB
ably use the privileges of the system
a little more freely hereafter Indeed
the National City Bank and some other
large institutions have set the ex-
ample" and have rediscounted millions
of dollars of bills.
Bankers also have their own little
way of putting on brakes, and when,
in the opinion of some of the leading
! banks, Wall street is over expanded the
establishment of high call rates for
money is the most potent factor in
checking speculation; it makes the COM
mission houses call for added margins
| and causes many trades to be closed
out in short order.
Probably there were factors that
made for conservatism and induced
bankers to whistle on brakes-the
foreign situation has not been to the
liking of Wall sweet. uncertainty OF
possible developments In connection
labor uneasiness all operated in favor
of contraction.
Moreover the federal reserve act es-
pecially bars from it's recognized col
lateral, stocks and bonds-the most
| liquid collateral available.
Not in Exact Accord.
Bankers very generally have COM
mented on the annual report of the
Secretary of the Department Of Com
| merce and Labor, especially that part
of it giving the Secretary's views of
foreign loans, in direct contrast to the
views of the federal reserve board.
our strong position and our sound gold
| reserve we must not only continue our
heavy exports, but must increase our
loans and investments abroad
and it is one thing 10 criticise and cor
rect business evils and a happier thing
to give business a helping hand"
Curtailment in Many Lines.
Curtailment in many lines of en-
deavor at this time would not be an
unwise movement, especially in plans
for the expansion of business through
| consultations Of corporations and in
f1ation of capitalization.
1t is unfortunate that many corpora
tions are able at the turn of the hand
to make their capital ten,- twenty or
a hundred million greater. by the vote
of the shareholders: frequently a close
stock dividend, offering great stock
dividends to shareholders in stock,
which but increases the burden of
necessary earnings. If there are to be
dividends. frequently the shareholders
are asked to make at least partial pay
ments on increased stock issue-to
their later disgust and loss. .
This unbusinesslike method does not
prevail in the public utility corpora
tions. 1t did once, but conditions have
TIn
sion-a general entity nowadays-is
required to give approval to new stock
and bond issues and must be convinced
that the work is needed and the ex-
pense just before giving approval.
For this reason alone many conserva-
tive investors are turning to municipal
industrials more and. more than ever
before and with very satisfactory re-
suits. And the various municipal cor
porations. under modern management
and without authority for reckless issue
of capitalization, are steadily increas-
ing their earnings to the satisfaction
Of investors.
That there is an immense amount
Of money seeking. satisfactory invest
ment is evidenced by the success of
the American Telegraph and Telephone
Company in its recent bond sales
seven times oversubscribed.
Local Securities.
This is probably the last week the
Washington Stock Exchange will oc-
cupy its present quarters. on F street
A week hence the exchange will move
to 18th street northwest, and brokers
hope that the change of location may
result in enlarged business.
Encouraging signs are in evidence
even now in the local stock market.
The chances that the street railroads
will suffer in any way as result of
the physical valuations for the utili-
ties commission are decidedly slim. On
the present dividend basis all these
shares should be desirable investments
and many points higher in price.
The Washington Gas Company will
make no fight on the utilities commits
sion's valuation of it's plant. though an
effort will be made to reach a COM
promise valuation recognizing the
necessity Of large expenditures in re-
placements. The drastic cut by Con-
gress in the price of the product will
be practical assurance against further
ecesston.
The exemption of the local stocks
rom the Intangible tax law should
loo ha1ra farfa11v-