Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-03-12
INTEREST CENTERS
IN WAR ACTIVITIES
Features Still Dominating the
Investment Markets in
New York.
BRITISH FINANCING MAY
DRAW AMERICAN CAPITAL
Necessities of U. S. Industrial Cor
porations Shown by Statistic-Evi-
dence Given of Expansion.

NEW YORK March 11-Active
interests in the stock market now
feel the necessity of keeping as well
posted upon the activities in the
trenches in Flanders as upon the daily
record of the congressional bodies at
Washington. Since in each instance
the problems which are interjected
arise from the European conflict, we
may logically conclude the war situa
ton is the most important and most
effective influence in the security mar
kets. This conclusion may very easily
be verified by observing the daily
course of the stock market. which is
apparently oblivious to the expanding
records of domestic commerce and re-
lies for its stimulus upon the headlines
in the war news division of the daily
newspapers. This is, of course, an
exaggerated view of the matter and
does not always hold true; but in the
majority of cases war developments
may be expected to WELD the heaviest
influence upon the price movements of
the stock market. Then again, a ses-
sion of Congress is always to be con-
q
market. but il is all the more so
when politicians interject domestic
and political prejudices into the con-
sIderation of important international
relations. This is the contingency that
is racing the market today, and which
is almost entirely responsible for the
apathy of public investors in their re-
lation to the speculative securities.
Decrease in Foreign Selling.
y feature of the market which in re-
cent weeks has become quite conspicu
Gus. has been the marked decrease in
foreign selling of our securities. This
may be accounted for in so far as Lon
don is concerned. in the announced
policy of the British treasury to cor
raj all the American securities that
are not tightly held down in prepara-
tion for future financing in which
a prominent part. Despite the nu-
merous denials by our larger interna-
tional banking houses. it Is common
knowledge that the presence of Mr..
bankers in London is concerned direct
ly with this new financing. the details
of which will probably not be an
nounced until May l. at which time
treasury begins. London cables report
that the continued discussion of the
next war loan, which is already lead
ing to some preparatory realization on
securities. has been responsible for the
unusual dizziness in that quarter. All
British investment stocks have shown
a reaetionary tendency. with distinct
pause in the demand for speculative
purchases. British investors are keen
Iy interested in the policy of President
Wilson in regard to the German sub
marine controversy. the outcome of
which is of incalculable moment to
CT
British Statement Surprising.
The statement of the British minister
of munitions this week relative to the
Insignificant part played by American
war supplies in recent fighting will
doubtless be received with surprise by
many on this side who have had exag-
serated ideas in this respect Mr.
Lloyd George said that American
manufacturers had not supplied one
tenth of the shells that had been fired
by the British, and that not a single
American shell had been used by the
French gunners- While the object of
this statement was to demonstrate the
present and growing efficiency of the
French and British munitions plants, il
also minimizes the possibilities for the
enormous profits which are supposed to
accrue from this class OF trade with the
European fighting nations. On the
other hand. it leaves at no great dis
advantage in the matter of readjust-
ments in our Industrial and commercial
organizations should the war speedily
terminate.
Plenty of Work for New Capital.
According to the reliable statistics
compiled by the Journal of Commerce
the amount of corporate financing is
steadily and consistently increasing,
the capital issues for the month of
February being the heaviest in years.
American railroad and industrial cor
porations are now making heavy de-
mands upon investors. the total actual
issues a bonds, stocks and notes for
February being s3o3.554.300. an in
crease of s3s,30s,200 over the same
month last year
The financial necessities of the in
dustrial corporations have been almost
three times heavy as the railroads,
and aggregate s220,002,300. COM
pared with $50 $50. 900 for the railroads.
Industrial companies have issued $751;
375.000 in new bonds, s101,s77,300 in
new stocks and $34,750,000 in short
term obligations. The total amount
of railroad bonds has been $49.767, 900,
railroad stocks $4,000. 900 and short
term obligations $17.7s5.000. A still
comparison between Industrial and
railroad financing when we consider
the records for the same period last
year. In that month the new financing
of the railroads amounted to s175,-
100000. while the industrial incor-
porations called for but $4,000, 900.
This will illustrate the tremendous ex-