Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-07-30

NE" YORK, July 14.-NOW Inal Iue
final instalment of the Liberty Loan
is out of the way the monetary out
look is comparatively clear. Funds
withdrawn by preparations for financ
ing this transaction and the July dis
bursements are returning to this cen
ter, and the situation was further re-
lieved by reduction of reserves of Fed
eral Reserve Banks from Is to 13
per cent basis, a move which at once
released about 90,000,000. With these
transactions out of the way, the course
of the money market is now fairly
clear for the present. Payments for
the original loan will not be complet-
ed until the close of August, and the
Allies will soon be in need of addi-
tional funds; so that with our own
military demands also to be met, the
absorption of funds will be on heavy
scale as long as the war continues.
There is no question but that these
requirements will be easily satisfied,
but the universal waste and need of
capital created by the war may stiffen
the demand, as we'll as the rates, for
its use. The sale of $55,000,000 New
York City Az per cent bonds was as
successful as could be expected un
der existing conditions. The price
seemed low compared with previous
sales, and was significant chiefly as
proving the higher rates necessary to
command capital.
Developments in the war are encOur-
aging in the direction of peace. Upon
the whole the Allies are making steady
gains; not so much in territory as in
the persistent wearing down Of the
military strength of the Central Pow
ers, while the Allies strength is
steadily maintained and even gaining.
Success in this war is not to be
measured so much by territory won
or havoc wrought, as by the relative
fighting abilities of the two sides.
There is no question about which side
is in the ascendency and which on
the decline. Signs of dissension and
even disruption are evident in Ger
many's present government crisis, but
these should not be taken too seri-
ously Although Germany is tired OF
the war and dissatisfied with its re-
cent conduct, the kaiser's power is by
no means broken. 1t should be re-
that both Great Britain and
France have had several government
crises, and Russia 3 great revolutions !
but none of these events had any
other result than a determination to !
carry on the war with still greater
vigor. 1t is premature, also, TO sup
pose that the present crisis in Ger
many means an early end of the war. +
Germany is not yet conquered; and !
there is no assurance that her people
are yet ready for the sort Of peace
terms that the Allies are bent on die
tating
The stock market feels the heavy
pressure of government regulation.
which is extending more and more in
TO all departments of industry Our
railroads have felt it in heavy restric-
tons upon earning capacity, and made
it difficult to secure capital for ne
cessary terminals. extensions. equip
nent, etc. President Wilson's remarks
On Thursday regarding price fixing
caused something of a disappointment
10 the stock market In nv opinion,
however, his Words will ultimately
10 good. for the president rAvors fair
profits, even liberal profits when jus
lifted, and the policy which he has
initiated will tend to proven: excessive
profits and stabilize them; thus mod
srating extremes and preventing I'M