davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
Yield Subordinate
To Marketabilityt

Bonds of this class include those of
railroads, municipalities, industrial
and public utility corporations. When
it is stated that such bonds, with eX-
ceptions. should yield not over. AIS
per cent in order to be eligible, even
the reader who is not at all initiated
will realize that only the securities
of the highest grade are included.
There are many railroad, municipal,
industrial and public utility bonds
that are reasonably safe that yield
as high as 5l2 per cent, but, obvious
ly, they are not so desirable as Sc
curities yielding AS per cent or less
and would not have the same de-
gree of marketability during a de-
preston as higher grade bonds.
Short term notes of strong cor
porations or municipalities are in
demand for this purpose. Obliga-
tons of corporations known to be in
hourishing condition usually sell
at very near par value, and it is as
sumed that they will be paid off at
par upon maturity; the yield is, in
most cases, greater than that paid
by banks upon deposits. These notes
are secured by collateral such aS
stocks or first mortgage bonds or
are absolutely unsecured credit obi
gations; they are often in the form
of receivers certificates, taking
precedence over first mortgage
bonds. When bought with discrimi-
nation. short term notes form a dc
sirable holding for a reserve fund.
a firm having a larger cash sur
plus than it could keep actively en-
gagged in it's own business could in
vest proftably part Of it in sound
securities. A concern not having a
large cash surplus might ut some
time, even when no depression OK
listed, be pressed for funds and be
unable TO secure them through lack
Of collateral. Any firm that has eX-
perlenced the lack of funds when
thousands Of dollars in obligations
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26

Corporations having new fnanc-
ing to arrange recognize the un-
favorable situation at the moment
in the general investment market.
Last week the Southern Railway
abandoned its plans for permanent
financing involving an issue Of $780,
100000 of new refunding bonds, and
substituted an issue of two-year
notes of that amount. The Bethle-
hem Steel Corporation also brought
out a short term note issue of $780,
100000, whereas in January it was
stated that an effort would be made
to arrange a long term bond issue
to take care of future capital re-
ouirements. Railroad and indus
trial corporations have in the past
endeavored to free themselves from
the necessity of selling short-term
notes, which is generally recognized
as a costly and Objectionable form
of financing. 1t is believed that had
the Southern Railway undertaken
its financing earlier in the year, no
difficulty would have been encoun-
tered in placing an issue OF long
term bonds.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
Young America Well Amused

II statistics serve as a guide, the
American child of to-day is provided
with greater means Of being amused
than his grandfather enjoyed in his
childhood. In his grandfather's time
that is. back in 1859, to use census
year-an even dozen toy establish
ments sufficed to meet the demand for
American factory-made toys, to which
some S353,00O worth Of foreign toys
was added Since that year, with
growth in population Of but 2l9 per
cent. the number Of establishments IN
the United States where toys are made
has increased by 2,317 per cent the
number of wage earners employed
therein by 1881 per cent, the capital IN
vested in toy manufacture by 1850
per cent, the wages paid by 1870 per
cent. the cost of materials by S,0Sl per
cent. the value Of the products by
1871 per cent. the imports by 1886
per cent, and the per capita expendl-
ture for toys by 1,l65 per cent.
Set down in tabular form. the growth
Of the American toy industry during
the last half Gentry has been:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
Americans Get
Little of BengalS
Big Cotton Trade
Domestic Manufacturers Do Not
Make Kind of Products Desired
in midas Great Market

The presidency of Bengal, in India
imports as much cotton goods as the
whole of South America. According to
n report just issued by the Bureau OF
Foreign and Domestic Commerce, De-
partment of Commerce, Bengal spends
500, 900 a year for foreign made
cotton goods. This is 10 per cent Of
the total worlds trade in cotton goods,
and American manufacturers have prac-
ticaly no share in it.
Americans do not make the kind Of
goods required by the market, says
Ralph NJ. 0dell, author of the bureaus
report. and until they do IL is not like
ly that they will ever get much of the
business. The value of the imports of
dhoties alone amounts to $4,000. 600 or
$4,000. 900 annually, but they have
never been made in American mills.
Other lines. such as saris, colored lun-
gis, gray and white jaconets and mulls,
and white nansooks, which occupy a
prominent place in the trade. are prac-
tically unknown TO the majority of
American manufacturers. The only I'M
portant lines that offer immediate OPP
portunities for the development Of
American trade. without involving radi-
cal changes in the construction of near
~ similar goods, are gray, white and
printed shirtings. American manu-
facturers would do well, however, TO
give their serious attention to dhoties,
saris. etc. not only because Of the large
demand for them in Bengal, but be-
cause they are used throughout India.
The rising cost Of production in Eng
land, which supplies nearly all Of
these goods, makes it possible for
Americans to compete in at least some
of the qualities that are imported.
Although England has for many
years supplied the great bulk of the
cotton goods imported into Bengal, a
number OF other countries have had a
business in certain lines that is not
to be despised. Before the war Ger
many supplied quantities Of blankets,
shawls, hosiery, miscellaneous colored
piece goods and colored yarn. Austria
Hungary also managed TO do conssd-
cradle business in colored yarn and
cloth, shswls, handkerchiefs and no.
siery. Belgium had share of the bust.
ness in blankets. miscellaneous colored
goods, shawls and handkerchiefs. Hoi-
lands sales of colored woven goods,
colored yarn, white shirtings and blan-
ksts have been restricted By the war,
as have ltaly's sales OF colored yarns
and miscellaneous colored goods.
Japsns trade appears 10 have suffered
least on account OF the war. IL alone
shows an increase. which IS n signih-
cant fact and shows that japanese
manufacturers are alive TO the oppor-
turity which tho eurtailment of sup
plies from Europe has created
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
WAR USES UP
MUCH ALCOHOL
Earnings of U. S. Industrial
Co. Equal Sc Per Cent
on Common Stock

A surplus equivalent TO 36.1 per cent
on its s12,0Oo,0O0 common stock was
earned by the United States Industrial
Alcohol Company in 1916, according to
the figures contained in the annual re-
port. In 1915 the company reported
1916 per cent for the common shares
and in 1914 only 1874 per cent.
The remarkable increase in earnings
last year over the two years preceding
has been due mainly to the enormous
demand for the company's product,
which is used in the manufacture OF
high explosives.
Earnings, after operating expenses,
last year amounted TO s6,727,042, an
increase of s4,OO2,435 over 1915. Ex-
penditures during 1916 were 1883, 2l2
for maintenance and depreciation, $685.
.4S7 for administration expenses; in
terest charges $3.50, 1851, and preferred
dividends. s54S,562. The amount added
to surplus was 1896, O24, bringing that
figure up to SO ,693,826.
The company's balance sheet showed,
however, that only S1,262,O15 was rep
resented by cash. Accounts payable
totalled S7,773,92l, against bills re-
ceivable of s3,225,6l6.
Frederic VI. Harrison, president, says
in the report that the company's out
put for the first six months Of the
current year has been contracted for
at prices materially higher than those
which prevailed last year.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
THE COTTON MARKET
Trade More Active and Prices Dow
in Print Cloth Division =.

Fall River. Mass, FEB. 25.-Ira''
the cotton goods market here l'a'"
has been active and prices OF %, :.
STYLES have been advanced ns'en'
over the previous week Buye" =
be prepared to make the sd'ane'
prices general If they hope TO ''"
goods. r
The statement that trade is NOR" a,
tive and prices better relates :,
print cloth division. The inere''" =,
tivitv evident the latter part OF
rrevio,s week was continued in"
through last week. Sales S'''
terialIv larger than those Of the pr ~,
Gus week. and the previous week. ;.s
was larger than that Of any p''
week in over two months. AL
STYLES that have been most |" d
nard how advances varying fr's
sixteenth 10 an eighth OF q een'
over the previous week. No" u|
facturers are looking for sdvsne"
ruu eighth il contracts are
The turn TO stiffness in asking y
has been abrupt FL
The total Of sales In the pm"
division is estimated AZ 22o'ow
Of which probably 10000 were ~,
The fine goods division b. ~,
begun 70 show in any nouev<
gree A renewal OF activity. ~
faeturcrs arc ready TO eonsid"
for contracts, but will no'
much IN reduced prices
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26

The expected United States gov
eminent bond issue has so far failed
to materialize, and the banking com
munity continues to wait on it. In
financial circles little doubt is eX-
pressed as to the success of such an
offering. One of the houses which
makes a speciality of dealing IN
governments" says that, if we
should find ourselves involved in the
war, the patriotism Of investors In
this country would enable the gov
ernment to borrow all the money it
would be likely to require for a year
at 8 per cent. Thereafter, should
there be need of additional amounts
of any considerable size the rates on
such loans would be gradually in
creased. We have only to refer TO
financial conditions which have pre-
vailed abroad during the last two
years as our barometer in this re-
spect.
1t would not be beyond reason for
/ Congress to authorize billion-dol-
lar popular loan, bearing 3A per
cent interest, with the specification
that it could not be legally sold or
offered for subscription below 100.
Afterward, according TO the author
ity mentioned, another billion prob
ably could be raised at 81 per cent
without much difficulty. If any ma
ton on the face Of the earth is fortl-
fed with prosperity, justifying a
low rate of interest, certainly the
United States is entitled to it to-
day.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26

An interesting development in the
money situation of late has been the
tendency of banking funds to move
to the interior. During the last
week local banking institutions re-
ported a substantial loss on the d.
rect movement with their CORE
spondents. The drift in this direc-
ton is significant. 1t is somewhat
too early to attribute it to the spring
demands for planting and other sea-
sonal uses in the interior. Presum-
ably the resumption of gold imports
on large scale is an important fac
tor, in that, coming as it does on an
already fortified banking position,
it discourages the retention of sur
plus funds in the East. Last year
the excessive gold imports and the
abnormally low rates for money
were responsible for a general drift
Of funds to interior districts.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
MEXICAN P. NJ. GENERAL
FIXES MONETARY RATES

William W. Canada, American Consul
at Vera Cruz, reports that recent de-
cision Of the Mexican Postmaster Cen
eral orders the postoffices throughout
tho republic 10 accept United States
dollars in payment for postage stamps
at the rate OF $50 pesos national gold
to the dollar. This differs from the
rate fixed by the Department of Finance
for the first ten days Of February, viz,
1.s5 pesos for each American paper dol
lar and 1.95 pesos for each American
silver dollar.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
Finance Economics
WALL STREET OFFICE: ielepnons
Mills Building, Is Broad St hanover ooi'
Monday, February 26, 1917.

Liquidation, which so unsettled
the stock and bond markets a fort
night ago, appears to have run It's
course, and as a result investment
securities are working higher. The
improvement has not been pro-
nounced, however, because despite
the fact that there is a general feel
ing of confidence, the demand re
mains distinctly limited, and until
the political horizon clears not much
activity can be expected. In the
mean time, investment funds are ac-
cumulating, and once the state OF
uncertainty passes the market for
high grade securities should quickly
respond.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26

Two factors have tended to ease
up the local situation during the
week. For one thing, New York
banks, which have been carrying
large balances in London because Of
the more profitable interest rates to
be obtained there, have made heavy
Withdrawals, estimated at $780,
100000. At the same time, the
bankers in charge Of the Allied
finances have imported approximate
ly $50,O0O,OO0 in gold from Ottawa,
making nearly S1O0,000,000 in two
weeks. Not all of this, however, has
become available for banking pur-
poses, as the Federal Reserve Bank,
in line with its policy Of getting con-
troll of the country's gold reserves,
has purchased approximately S4O,-
100000 of the incoming metal. Evil
IDENTIFY Sir Edward Holden's protest
was unheeded.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
ReAexes Of War

The following resolutions were re-
Gently adopted in Manchester, Eng
land, urging the development of Brit
aims cotton supply:
That the present situation as to the
supply Of cotton is most serious, and
requires the immediate attention OF his
majesty's government.
That it is essential for the future
prosperity Of this country, and also
for the welfare OF the colonies, that
cotton growing should be developed as
rapidly as possible in all suitable parts
Of the empire.
That the authorized irrigation works
for the development OF the Gezira
Plain should be pushed on with the
least possible delay.
That immediate steps should be
taken both to improve the quality and
20 increase the quantity Of Indian
cotton.
That n departmental or other COM
mittee should be appointed TO consider
the best method of continuing and
developing the work inaugurated by
the British Cotton Growing Assoca-
ton, and that, pending a decision on
this question, the government should
render such financial and other assist
ance to the association as will enable
them to carry on their work TO the
fullest possible extent.
In order to avoid a crisis in the
cattle industry, due 10 tho increased
expectation OF frozen meat 10 Europe
and the United States. the government
Of the state OF Sac Paulo. Brazil, has
imposed a tax of $3.50 a head on
every animal slaughtered under ten
years Of age.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
Number
Of e.taln-


ne articles MADE DS eaIdDlt9"H'0''''
assigned in census enumeratons to
toys and geu,os" ere numerous. They
include indoor ball games, children
vehicles and swings, checkers. domi-
noes. dolls, stuffed animals, stere-
oscopic views, toy furniture and uten-
sis. various card and other games,
playground goods, toy building blocks.
children's driving reins. rattles and
foor-rollng chimes. cribbaCe boards,
croquet sets, toy drums, jig-saw and
other puzzles. hobby-horses and rock
ing.horses. kites. magic lanterns and
slides. magical apparatus, tricks and
novelties. masks. mechanical toys, toy
railways. engines and cars and Toy saw
ings banks.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26

tain that considerable money will also
be raised in New York. The latter
loans will be on general purpose ae-
count, rather than on war account. IL
is perhaps not an unreasonable deduc-
tion to suggest that the general pur-
pose borrowing, which has been author
lied to the extent of about Sl25,OOO,-
900, has been earmarked for the United
States market. in addition to the obi
cations maturing there and which must
be renewed or refunded
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
approximately s1O7, 100000 in small
bond issues of its subsidiaries, re-
deemable from par TO 10.

That last weeks stock market was
practically repetition of the trad
ing in the preceding week is not sur
prising. Dealings were almost en-
tireIy of the professional sort, with
the general public holding aloof.
The upward movement early in the
week, for the most part due to buy
ing by those who had sold for a
fall, attracted little outside buying
and prices soon receded. Traders
turned again TO short selling, so the
trend Of the market was downward
when the close on Saturday ended a
series of featureless sessions. The
ups and downs Of the week had little
relation TO the news.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
Scandinavian Embargoes

IL has been announced that the re-
strictions imposed in September last
on the importation Of boraI and
boron compounds into Norway have
been cancelled.
To the list OF goods which are now
prohibited for expectation from Swe-
den are now added phosphorus. yell
low. white or red; seoulsulphidc 81
phosphorus, phosphorushyride, wood
spirit. raw or purified, ink and pow
der link POWDER for the manufacture
Of ink, China ink. also liquid. cal
eium phosphats. artificial
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26

New Haven securities were helped
by the official statement issued by
the directors. The convertible 6s,
which dropped below par a week
ago, rose points to 102. The di-
rectors expressed the belief that the
two issues of maturing notes,
amounting to s43,O00,OO0, would be
refunded at or before maturity.
"The present position of the New
Haven" the statement read, "from
a standpoint Of holders Of its short
term Indebtedness, is the most sat
isfactory existing at any time since
this Indebtedness was created" 1t
is expected that the New Haven
will follow the lead of the Southern
Railway and enter the note market
in the near future.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26

Money rates have displayed ten
dency to relax slightly in recent
days. Evidently the disposition to
withhold funds, that became so pro-
nounced when the German crisis
suddenly developed, has moderated.
Bankers, while still moving eau
tiously, are showing greater willing
ness to do business. Borrowers, as
a result, have been able to obtain
somewhat more favorable rates.
Time money on brokers' Stock Ex-
change collateral still holds around
4 per cent, however, and commercial
paper rules at Al to Az for the
best names.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
Ready Cash
A Temptation

In other words, how many firms
invest a part of their surplus, per-
centage of their weekly or monthly
payroll, in prime, marketable securi-
ties? The suggestion is not, of
course, advanced here as a new one.
But it is one that is very easily
"pigeonholed" by busy executives in
favor of other matters Of immediate
interest, such as additions to plant.
Nevertheless, in these prosperous
times, the matter Of a reserve fund
should receive more than passing
notice even at the expense of in
creased dividend declarations. A
concern can, of course, deposit It's
reserve fund in bank at per cent
or 8 per cent interest, but with a
large amount Of cash available by the
mere signing of a check there is al
ways the temptation to make eXpen-
ditures for one thing or another that
might not arise were the funds in
vested in prime securities.
OF course, ready marketability is
an expensive feature in an invest
ment inasmuch as it is not possible
to find bonds that combine safety
and ready marketability with high
yield. Therefore, bonds that possess
the degree of safety and marketable
ity that makes them eligible for a
business reserve fund rarely yield
over 4.75 per cent. The best grades
of investment bonds have not only a
market on the New York Stock EX-
change, but on many of the Eu-
ropean exchanges; they also have a
market in the other American eX-
changes and are dealt in ''over the
counter" in the large financial
centres.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26

During the week there was re-
vival Of the rumor that the United
States Steel Corporation might de-
vote a portion Of its huge cash sur
plus to reducing the company's
funded debt obligation. The balance
after dividends for 1916 was ap-
proximately s2OO,OOO,OOO, and this
years will probably be as large.
The corporation has a total bond
and debenture debt outstanding OF
slightly more than 100000, 900, OF
which s248,3s7, 900 consists Of fifty
year gold 5s and s1Sl 100000 OF
sinking fund 81. The latter are be
ing retired at the rate Of about ST.
100000 a year. The corporation has
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26
INSURING BUSINESS
BY INVESTMENT

we're coming due in a few days, when
the payroll was also to be made,
should prepare nOw for hard times
by setting aside , per cent or per
cent or 10 per cent Of its payroll
each week in order to provide an in
surance fund against lack of ready
money during a depression.
When Quick
Assets Count
A manufacturing concern with
payroll of $1,000 weekly might find
it possible to invest $3.50 weekly in
prime securities, so that at the end
of the year it would have $4,000 in
vested. 1t might be able to invest
much larger sum, all depending upon
how great were its profits and how
much in dividends its stockholders
expected. lnasmuch as depression
occurs about every seven years, If
such a fund were started now, by
1923 a corporation should find itself
the proud possessor of $4,000 in
vested in prime securities and no
great effort expended. If the So
curities were purchased under par,
the sum would be much larger, and
still larger if interest on the securi-
ties owned were added to the cash
to be invested. The fund may be
SO week for a small firm or $1,000
a week for large one, the principal
being identical. Any concern that
can count among its quick assets
few thousand dollars or a hundred
thousand dollars in the best securi-
ties can command respect at bank
presidents Office at any time.
When such a proposition has been
advanced to the head of large bust
ness. the retort has often been that
the firms money was "all tied up in
the business" or, why should We
invest at Az. per cent when we can
earn 10 per cent in our own bust
ness?" or, 1--WE need Improvements
to our plant" etc. Nevertheless,
skeptics who failed at first 20 see the
light are now forbearing to place
funds in their business at Is per
cent and buying bonds which yield
but Az per cent because 10 per cent
to-day may not be an asset ten years
hence when the bank president turns
a deaf ear to pleas for money on
unsecured paper.
Look over the holdings Of savings
banks, insurance companies, Institu-
tions and successfully managed cor
porations; what sort of investments
do you find? There are mortgages
yielding from Az to 6 per cent, not
readily marketable; various corpo-
ration bonds yielding 5 to 6 per cent,
not readily marketable during de-
preston excepting at sacrifice /;
prime railroad, municipal, industrial
and public utility bonds yielding
from 4 to Ats per cent, easily mar
ketable at all times with little sacri-
flee, or always available as collateral.
Why do concerns like these invest in
bonds yielding but 4 per cent when
they could place all of their funds in
securities yielding per cent? The
reply is obvious.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-26

The market for the general run
of bonds, whether prime rails, in
dustrials or municipals, is extremely
thin. Accordingly, an investor who
tries to buy securities in the open
market finds he must pay premium
over the current quotation, while il
he tries to sell he must offer his
holdings at concessions.