New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-07

can make up for the losses of war
by indemnities imposed through
the aid Of her victorious armies. When
peace comes, 1t is now becoming recog-
nized. taxes on the debt incurred In
carrying on the war will be a crushing
burden on German industry that will
require every resource TO sustain.
Germany's great world trade, shattered
By war, will have 20 suffer from the
prejudices Of her enemies, even II no
customs barriers are erected 10 dis
criminate against her products. The
great source OF strength IN that period
of rehabilitation will be in the United
States. Il Will be immeasurably TO Ger
msny's advantage if her goods can
come here without prejudice.
The steady liquidation which has
been in progress since the beginning
Of the year came 20 a climax on Mon
day, when commission house customers
sent IN selling orders IN exceptionally
heavy volume. How thoroughly the
speculative position has been cleared
up by the decline of more than four
weeks has not yet been made evident.
i'm the recovery some issues went TO
better levels without encountering any
great amount Of offerings at the better
prices reached New buying. however,
was not prepared 10 follow up the rise,
and considerable proportion of the
purchasing which sent prices higher
was 20 cover short sales OF traders.
War Stocks Still Active.
Speculative industrials. loosely cata-
logued as war stocks. the shares of oil
equipment and steel and iron concerns
showed the most vigor on the rise. The
cOppers did better for A while thar
they have since the metal began its
recent remarkable rise. Railroads. par
tcularly weak on Monday. made up
that days losses and then advanced on
no great amount Of dealings. only 10
fall back in Fridays decline
European liquidation in the interna-
tonal list OF stocks did not seem par
ucularly important Since the British
government began TO collect our securi-
ties under the mobilization plan il has
sent 10 this side comparatively few
stocks. Bonds have formed the prin-
clpal part of its shipments. These have
been disposed of with little difficulty.
dealings on the exchange of course. ac-
counting for only small proportion
of the transactions. Institutions have
taken bonds offered i'm blocks as large
as NI'OOO,UOO, and prices have held firm
through the distribution.
80 Tar there has been no occasion TO
put securities returned by British hold
crs nto collateral loans. instead Of
Offering them for sale. Should the bond
market grow stale and no longer absorb
European holdings, without material
effect on prices, then they will be
offered 10 local banks as collateral.
When stocks come in greater volume
10 is 20 be assumed that they will be
treated On the same fashion and make
good the promise Of British authorities
that there will be no serious pressure
on our market.
Sterling Rates Held Steady.
Meanwhile the British government il
having no difficulty in maintaining suf-
tcient funds on this side to keep ster-
ling at reasonable levels. Fifteen per
cent Of the Anglo-French loan remains
uncailed for, and not all the proceeds
already turned IN Rave been expended
Sight drafts on London last week at
their lowest were only a little below
the rate of 4.76 in the pound, around
which they have been held
French exchange, on the contrary,
las been weakening since the middle
Of January. Paris checks, against me-
tallic parity of 51S26 francs for dol
lar sold last week as low as 5.93 b.
The recent Sl50OO,000 commercial
credit has proved insufficient TO meet
the needs of French purchasers here.
a more comprehensive accommodation
for the benefit Of our customers in
France is ln contemplation, and one Of
the results of the visit of the head Of
the firm Of J. p. Morgan & Co. 20
Europe Will probably be large loan
here. Though IL will be some time be-
fore this is accomplished, French ex-
change recovered toward the end Of the
week on news that such relief was IN
prospect.
Russia. the third Of the great Allies,
has been IN great need of funds here.
Documents calling for payment Of
rublcs in that country have sold at a
discount of more than 40 per cent.
Negotiations for n credit here have
been under way for some time. but the
Russian government has moved slowly.
Il has been urged TO snip TO this coun-
try some gold from the immense hold
incs of its central bank. and reports
received last week indicated that this
was being done. A banking loan and
an offering of Russian securities here
are both being considered.
Market Ignores Business.
General business conditions still fur
nish little direct stimulus TO securi-
ties. The railroads. whose reports
measure the volume Of goods carried
from place 10 place, turned out more
wonderful earnings statements for De
cember a number OF the stronger
roads have IN the six months from July
10 December shown balances large
enough 10 pay twelve months dividends.
Labor troubles before summer may cut
down these immense returns, and the
market took this possibility into con-
sideratiOn. As evidence Of the coun-
try's prosperity railroad earnings are
nevertheless conclusive.
General trade is operating under con-
ditions of rising prices unfamiliar 10
this generation. Conservative lending
institutions are urging that this IS the
time 10 make profits. Sooner or later,
they admit, there Will be goods pur-
chased for sale or manufacture at
prices that will not be maintained.
They point out, though, that this fear OF
being tied up with goods that must be
disposed of at a loss is no sufficient rea-
son TO prevent business men from max