Evening star., 1917-03-04
MARKET UNSHAKEN
BY WARS ALARMS
Securities Largely in Strong
Hands and Big Slump Is
Not Expected.
PLANS FOR new FINANCING

prices. 1t has been remarked in fact
that the market which could Withstand.
without finching. the extremely dam
aging developments Of the past few
weeks was indeed on a very substan-
its moorings should this country be
dragged into unwilling warfare.
Perhaps the greatest lesson we have
learned from the great struggle in Eu-
rope Is the tremendous cost Of mod
ern warfare. Statistics have been quot
ed so often, and rearranged in so many
different forms. that the average per-
son has become bewildered in the maze
Of figures.
War Means Privattons.
But every intelligent person has a
clear conception of the fact that the
pean war is such that not only must
the severe privations be endured by the
present generation, but heavy burdens
are to be passed along to posterity.
Possibly our participation in the war
will not be to such an extent that we
shall learn from experience the sis-
niflcance of these excessive expendi-
lures; but even adequate preparedness
involves the expenditure of great sums
of money, and 1t Is evident that the
time has come for a more extended
program along these lines This will
entail special government financing,
the issuance OF new government securi-
ties. and possibly the creation of a new
set of war brides" on the stock ex-
changes. Many investors are holding
their available funds in anticipation Of
such an issue, and forthcoming railroad
and industrial bond issues must COM
pete for popular favor with Uncle Sam
as preferred creditor. There can be no
question that a large mass of wealth
has been created by the profitable war
contracts that have been handled by
American firms during the last two
years. Furthermore. some handsome
profits have been garnered in by the
get-rich- quick class. who have been
moro than usually shrowd In their
predictions Of the market movements
Of the war stocks.
Big Demand for Money.
But 1t will require an enormous
amount Of money if we are to par
ticipate in a war Of the proportions
indicated by a new 6.000,o00.000 sub
scription for investors Of the United
Kingdom to their own war loan. A
will mean the selling Of securities that
are considered of less favorable
character than government bonds.
In the meanwhile. the movements
Of stocks in the more important specu-
lative centers are determined almost
exclusively by professionals. the gem
eral public being 'out OF the market"
80 tar as buying Is concerned. There
Is little reason to look for any gen.
eral decline in prices. however. for
stocks are now held in strong hands
and will not be offered at concessions.
This Is not surprising when we con-
slider the returns which prime divi-
dend payers are giving to the investors
fuence operating against an advance
in prices, namely. the increased sup
ply of securities by reason of foreign
loans in this country and the large
81 500. 900. 900. Of American securities
which we have by purchase brought
back from Europe.
Bond Market Conditions.
AZ previously pointed out in this
review. the volume of business in in
vestment securities has been some
what restricted because Of the uncer-.
tainty of the extent of the govern
ment's new financial plans. Most in
vestors prefer to keep their funds in
liquid condition at such times as the
present. and thus the market may be
considered q waiting market In
creased gold imports confirm the re-
cent rumors of additional foreign
financing. though definite announce
ment has not yet been Forthcoming.
Interest and dividend disburse
pilation Of the Journal Of Commerce.
will reach a total of S1S2.043.s27 dur
ing the current month. This repre-
sents the largest amount ever paid to
and compares with s154.544.15e in
March a year ago. One hundred and
eighty seven corporations will distrib-
ute among stockholders in the aggre-
gate the sum Of $1o9.243.s27. an in
crease of $21. .599. .66S.
The grand total Of dividends includes
disbursements to be made by one hun
dred and thirty-nine industrial and mis-
cellaneous companies. twenty-five steam
railroads and twenty-three street rail-
ways.
q. S. Steel Disbursement.
The feature Of the returns is the fact
that the United States Steel Corporation
will disburse $15,24s.433 to holders Of the
common stock, representing an extra dis
bursement of ~ per cent in addition to
the regular quarterly dividend Of IN per
cent. In March year ago the corpora
ton paid out s6.s53,7s1. representing a
quarterly payment Of ~ per cent. An
other feature is number of initial divi-
dends and also increases and extras.
Interest payments will approximate
$72. 800. 900. against s66. 900. 900 in the same
month year ago. The increase Is ex
The city Of New York will pay out in the
way of interest about 81, ,000, 900. 1t will
also distribute $s.000.000. representing
maturing revenue bonds.
A summary of the March dividends.
with comparisons in the corresponding
month a year ago, follows:
Industrials ....... SCI, ,e77,577 a7.14i 055
Steam railroads 81. .822. $50 81. $50, ,53i
Street railways ...... 2,44S.E70 .,266, $40
Total ...........$l .$l09, ,24a.s27 $s7,e44, ,159
W. 8. COUSINS.