The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-06-23

No Eruption from This Years Po-
itical Campaign-Motor Stocks Re
cede-More Gold Importations from
Canada-Russia and Newfoundland
Secure Loans in This Country.
New York, June 17.-Wall Street
has taken a most favorable view of
the political outlook, and expects a
minimum of disturbance to general
business in this years presidential
campaign. The principles and policies
of the leading candidates are so nearly
identical, and the decreasing prestige
of the political demagogue so clearly
emphasized that legitimate business
has less and less to fear from that
quarter. The financial district is there
fore hopeful that the 1916 presidential
campaign will be unattended by many
of the evils that have married the
quadennial feature in many times past.
With railroad earnings at the highest
levels, bank clearings at from Is to
50 per cent above the average, indus
trial plants working overtime, and lab
orers employed full time at good
wages. there is less disposition 10
worry over the diverging lines of po-'
litical policy.
The past week has marked general
recession in the quotations of many
stocks which have gained tremend-
ously in recent trading. This is par
ticularly true of the motor stocks,
which, though representing extremely
large valuable properties with great
investment possibilities, have been
somewhat overestimated. 1t was only
natural, therefore, that they should
in time find their proper level, and in
the opinion of many good judges this
level will be found still lower than to-
days quotations. The sudden collapse
of the plans for the consolidation
Of four or more of the leading motor
companies under the name of the
American Motors Corporation had not
added to the attractiveness of the mo-
tor stocks.
The reported large earnings of the
various shipping companies again d.
reefs attention to this section of the
companies have already justified the
confidence of their sponsors, and their
entrance into the carrying trade has
The United States Steamship Com
d
per cent and its directors have unoffi-
cially promised a monthly disbursc>
ment, presumably at that rate. Mr..
c. w. Morse, the head of this com
pany, is now in Europe on a special
business trip.
The rehabilitation of the Interna-
tional Mercantile Marine, to which
reference was made in this review a
q,
fully and satisfactorily. The COM
mittees representing the various
classes of security holders have come
to an agreement with respect to the
plan of reorganization, and official an
| nouncement to that effect will be madt
| in the near future. This announce
ment will doubtless outline in detail
the plan agreed upon. The market
action of both classes of stock has re-
hected the general approval of the
work of the reorganization committee
the common stock having move UP
from SIS to $40, and the preferred
from $50 to 500 during the past three
weeks.
The general outline of the scheme
of rehabilitation contemplates the pay
ment of interest on defaulted bonds
| The large surplus accumulated since
the receivership will not be used for
the payment of back dividends upon
the preferred stock, but the interests
of the common stockholders will be
protected and their equity in the COM
pany will not be wiped out. The re
,ceivership will not be lifted until
about August l. There will be no diff
Guilty about securing from Great Brit
ain all the Marine company's cash
necessary in rounding out the plan oil
readjustment, according to those con
nected with the negotiations. The
funds needed will be declared as div.
idends on stocks of the subsidiary com,
panies and that money will be readily
transferred from British jurisdiction
While the cash position of the com.
pany as of June l, has not yet beer
tabulated and reported to the New
York interests. it will probably ex-
coed $67, 100000. Of that amount
close to $2OOOO,OOO is in New York
| The movements of the money mar
ket are now of the most absorbing
interest. The continued expectation Of
gold from Canada to New York i:
interpreted as being a preparatory
plan of the British treasury to hel[
make this market ready for another
heavy absorption of American secur.
tiles. 1t is estimated that in the cur
rent movement over fifty million dol
lars in gold has been sent over, witt
| no immediate cessation in sight
Were there nothing to offset these
importations, the sterling situation
would not in any way be improved
while at the same time heavy add
ton would be made to our exces:
money supply.
Meanwhile, the new burdens i'm
posed upon the British owners o
American securities are having the de
sired effect of bringing to light stock
which have been in stong boxes TO
twenty years or more. 1t is therefor
to be assumed that the British Cham
cellor will in the near futue have
large amount of these securities TO
sale. and their sale in this marke
will to large extent offset the gol,
shipments from the Canadian capital
Money rates in the West and Soutl
are showing frmer tendency, i,