The Washington times., 1917-01-21
Trend in That Direction, But
Hope for Action in Near Fu-
ture Is Fading.
REIMBURSEMENT UNDER WAY
Wall Street and Outsiders Are
Investing, Not Specializing
to Any Extent.


it this week in the news output, but
little to influence it greatly one way
or the other. The prospect for peace
in the near future at any rate is fad
ing away perceptibly. While this has
been an influence toward bulIish SEN
timent II has not been a sufficiently
strong one to give that feeling to the
securities market necessary to attract
substantial public participation.
Meanwhile a long step toward read
justment of conditions to a peace
basis has been taken. Whether the
war continues another year or two
years, it is highly improbable that
there can be a revival of the war
market In stocks in anything like the
proportions of last year or the year
before.
The idea OF peace has become part
of the daily thoughts Of everybody,
whether everybody is willing to
acknowledge 1T or not. Through all
the maze OF conflicting statements
ana contradictory manifestations, the
neutral world sees a Germany, a leu
tonic alliance, wanting and needing
peace. The need may not be so press
ing as to compel a cessation of fight
ing within a year or within two
years, perhaps, but the result is in
eyitabIe. And ii is for the Central
Empire to make the next move. The
Joint reply of the entente powers,
supplemented by the more explicit note
of the British foreign secretary to the
Washington government, has done
much to align neutral sentiment on
the side of the allies. With neutral
opinion increasingly valued by boz
sides can the Teutons afford to ignore
the advantage gained by their enc
mics?
Trend Is Toward Peace.
The trend, therefore, is toward
peace. Meanwhile the securities mar
ket has been pretty Thoroughly liquh
dated. Those who have the money
are buying stocks for cash when they
are not buying bonds. Wall street
and outsiders alike are investing, not
specializing to any great extent
Since the turnOof the year the mar
ket has given ample proof OF this.
The course of prices has been such
as to give ample proof also of the
good basic condition Of the country >
prosperity. The steel trade and the
railroad business are interdependent
as they rarely II ever have been be-
fore. The one sees no diminution'' but
still has TO contend with the problem
of adequate transportation facilities
The other has more business than
IL can we'll handle, a. Is evidenced by
a shortage of more than $4,000 cars
The demand for copper is increas
ing and prices for the red metal are
stiffening daily. War business Is SUB
siding but commercial interests
throughout the country have Ions
since faced that fact and now busi
ness men, manufacturers, ETC., are De
ginning to feel that they can say
Let peace come, we are ready.
British War Loan Feature.
The outstanding feature of finance
this week was the offering of the
British war loan so susplciouslS
launched last week at the Guildhal
meeting. The inflow of subscriptions
has exceeded all expectations, accord
| ing to cable advices. A desire, doubt
| less, to facilitate the loan resulted
| in a reduction of the Bank OF Eng
lands minimum discount rate from
| per cent to 5la per cent That rat'
| has ruled at 9 per cent since las
| July. when il was advanced from
per cent in order to hold the neutra
| balances in London banks. Recently
there has been a movement OF fund!
from this side to the British capita
because of the extreme ease of money
on this side OF the Atlantic. With cal
money here at Ia per cent to pei
cent, and time funds ruling AROUND
per cent, it is unlikely that thu
Bank ofsEngland reduction will have
| much effect on the movement.
Entente exchange rates have ruled
| firm all the week without the aid o
| gold shipments, but in lieu OF thos'
| shipments. a loan of S250.OOO,OOO Il
| Great Britain has been contaminated
This loan will be offered next weel
on a basis of approximately 6 pei
cent yield. The offering price for thu
one-year loan is 1882, and the two
year loan 1907. Collateral valued a
! $500. 900 900. according to the prevail
! ing prices has been put up as secur
| ity, the first group consisting o.
American and Canadian securities
valued at S15O.OOO. 900. and the second
Of foreign neutral issues, with thos'
Of some of the British Dependence:
like Australia. Union of South Africa
etc.