The Washington times., 1917-06-17
LIBERTYLOAN CHIEF
WALL ST. INTEREST
Markets Left In Hands Of
Professional Traders.
DEALINGS IN LIGHTER VOLUME
Prices Rule Lower, But Underlying
Strength Is Evident.
DEALINGS IN LIGHTER VOLUME

centered practically all its energy and
interest this week on the initial offer
ing of the Liberty loan. The securities
markets were left in the hanus OF the
professional operators, who were con
strained to go slowly because of the
logical hardening of money rates.
Trading was accordingly in lighter
volume than in the previous week and
prices ruled somewhat below recent
high levels. Underlying strength was
much in evidence throughout however
The outstanding features were the
steel and equipment issues. and the
railroad department. which showed
progressive firmness, particularly
Reading and Union Pacific, and most
| OF the minor stocks.
The closing OF hearings In the
freight rate case before the Interstate
Commerce Commission and the pros
pect OF q favorable decision in the
near future was the main bull factor.
There was something OF a shock in
the action OF the Omaha directors, who
reduced the annual dividend rate OF
that road from per cent to per
cent The Omaha had paid Z per cent
since 1905 and not less than per
cent since 1901. so that the company
was looked upon as likely to be the
last to yield to rising costs of opera
tion and equipment On the theory
that the reduction would do as much,
IL not more, to convince the COM
mission Of the railroads need for ad-
ditional revenue than the testimony
of railroad officials. prices did not
break on the news.
Emphasizes New York'a Position.
At the opening OF the week there
was frank pessimism within financial
circles as to the ultimate success Of
the war loan. While New York was
doing its utmost to attract subscrip-
lions, 1t was felt with some justice,
II would seem, that the rest OF the
country was not responding as II
| should. No district had yet reached
| the quota assigned TO 1t by the Sec
| rotary of the Treasury, with only
four and-a-haIf days to run. This
center redoubled its efforts. deter
mined to raise not less than half of
the whole offering. By Thursday.
| the Treasury quota had been exceeded
by s25O,0O0.0OO. leaving something
like $780, 900 to be gathered to-
gether within the last twenty-four
hours. When the books closed FRI
day. subscriptions here exceeded
81 900, 900 900.
This feat emphasizes, II emphasis OF
| such a self-evideDt fact be necessary.
New York's position as the nations
financial capital. II was stated that
the country looked to this city for
| leadership in the huge undertaking.
II so, II has had II in full measure.
An aspect OF the campaign more
gratifying than the amount subscrib-
ed Is the number Of individual subscrib-
ers- Once the full amount was attained,
the important thing from the point of
view OF moral effect. was the num-
erical force back OF the loan. II
was equally important that neither
our allies nor the central empires
should get the impression that the
citizenry of the United States was
not heartily supporting participation
in the fight for democracy. Amer
ica's moral character was at stake.
II has been indicated by the
eleventh hour response OF the whole
country.
Strength Of o. 8. Position.
II will be some days, perhaps, be-
fore the full amount OF subscriptions
may become known with any degree
of certainty, but It Is estimated that
the grand total will run anywhere
from $500 600. 900 to $4,000 900 .OO1,
and that the number OF Individual sub
scribers will exceed 1900, 900 by a lib
eral margin. There can be no ques-
tion whatever about the character Of
this reply to the German blunder
which forced the most powerful ma
ton potentially in the world into the
camp of her enemies.
The United States has been in the
war a little more than two months.
In that short period II has rapidly
advanced its military and naval plans,
has registered a conscripted force OF
near 100000 men and now has
raised a huge sum of money with
which to do its part in the struggle.
II has still to complete its taxation
program and do many other important
things. and II Is to be hoped that the
same expedition will be shown. In
proportion as our progress Is hearten-
ing to the allies. II must be disheart-
eninE to the Teutons. Therein lies ,..e
strength OF our position. as Wall
Street sees II.
A successful Issue to the loan cam
paiEn has been discounted TO some ex-
l..
securities markets which might well
have been looked for. was tempered in
advance by the stiffeninE OF money
due to approaching disbursements OF
the mIdyear in the form OF interest
and dividend payments, balance on in
come tax, and 80 on.
Speculative Activity Discouraged.
In addition, per cent OF the war
bonds was due on allotment. amount
Ing to SAC, 900. 900. and on June -, ls
per cent, or some $3.50, 600, 900. 1t
also had to be taken into considera-
ton that numerous subscribers would
elect to pay for their bonds in full
when allotted. Under these circum-
stances, bankers have discouraged
speculative activity and every effort
has been exerted to ease the probable
strain on the money market.
The New York clearing house re-
minded banks that they could elimIn-
ate a good deal Of the physical move
mpnt Of cash by settling their daily
balances through the Federal Reserve
Bank. The Federal Reserve Bank
Furthermore made arrangements for
speciaI rediscounting rates for periods
Of one day, to be fixed by the officers
Of the bank from time to time. at not
less than > per cent and not more
than 4 per cent. for advances made
to member banks in transactions in
yolyinR Government fiscal operations.
This week call money advanced to
If