Evening star., 1917-11-05
SNAIL RECESS|ONS ONLY
IN LOCAL SECURITIES
sss -
BY I. A. ELEM1NG.

The smashing declines on the New
York stock market were without other
than indirect effect on the local market.
adding a little to the nervousness OF
shareholders. but not inducing much
pressure, although both Mergenthaler
and Railway preferred showed some
loss, tho former a point. at 142,
and the latter a little more than this,
but only on a five-share sale. the price
being II.
Capital Traction sold sparingly at
.soN.
Twenty shares Of Continental Trust
Co. sold at 120. a price that has been
consistently maintained for many weeks
and months.
Az the opening $4,000 Capital Trac-
ton SIS brought sS4s, but the price was
Immediately advanced to 80. where
three full-sized bonds changed hands.
r. Closed Tomorrow.
The New York Stock Exchange will
be closed from this evening until We'd
nesday morning, over election day.
Very many traders will likely take
profits this afternoon and may give the
market a better tone in the final trad
ing, from the extreme illness OF the
morning.
Clearing House Meeting.
The District Clearing House Associa-
tion will hold meeting this afternoon.
Cuno H Rudolph of the Second Ma
tional Bank is president of the assocta-
tfon and H. II. Mckee. secretary.
Spent Full Allowance.
The local liberty loan committee ex-
pended the full allowance made by the
District Bankers Association. $4,000. in
pressing the second liberty loan cam
paign.
Financing the War.
In view of the conditions existing
and that will continue throughout the
world conflict into which the United
States has been drawn. the following
survey. on the topic. Financing the
War;" Is Of interest to every business
man and every American.
cd The ultimate terms of our war
financing must be. not money. but
what money will buy.
't2) Vast as our proposed expendi-
lures and advances are. there is rea-
son to believe that they can be met
without the use OF any doubtful or
wasteful expedients Of finance; for
there is reason to believe that our an
nual income may amount to as much
as nifty billions. and be capable Of
yielding a savings fund which can be
appropriated by the government
through loans and taxation to the
amount of $4,000, 100000.
"(3) The war cannot be carried as an
extra and business cannot be usual.
"(4) Any attempt to carry the war
as an extra would pave the way for
an abuse OF loans and a certain infia-
tion of credit and prices which in the
end would increase the probable cost
of the war by as much as rs per cent.
through the enhanced prices the gov
ernment would have to pay for all
supplies purchased.
"(5) Government bond issues, to be
safe. must be bottomed upon real saw
(. ings. Intensive and Disseminated saw
ings and methods Of promoting thrift
are necessary ingredients in any ef-
fective program of war finance.
"f6) A similar necessity exists for
the effective mobilization of the in
dustrial power of the country. The
right Of way must be given to indus
tries that are tributory to the needs
of war. Priority of industry is there
fore definitely indicated as an essen
tial part of a good financial policy.
"(7) Working to the same end is
priority Of credits. the different indus
tries Of the country having priority
upon the fluid credit of the federal
Importance tembargo Of credit to nom
essential enterprises). Such a priority
Ia consistent with the spirit OF the fed
eral reserve act, which in one of its
most 1undamental Clauses oirectS tndt
rates shall be fixed with view Of ac-
commodating commerce and business
War now being the nations business. 1t
would be proper for the Federal Re-
serve Board and banks to fix discount
rates with a view of accommodating
commerce and business to the degree
manufactured supplies into gunpowder
tion.
"(S) The need of well informed
economic strategy for the purpose Of
co-ordinat ting the industrial activities
of the United States and those of our
allies so as to weld the population of
all these countries into one great whole
as fighting machine. through the con-
version Of the needed raw materials and
manufactured supplies into gun powder
at the front"
DR.. A. c. Miller of the Federal Reserve
Board is the author Of the survey.