New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-21
Values of British
Securities Show
Steady Shrinkage
Investment Losses Due to
the War Run Well Into
the Billions

The drastic fall in the value of Sc
curities in the American markets in
recent weeks, the result Of the general
readjustment Of commerce, industry
and finances to the changed conditions
arising out Of the entrance Of the Unit
ed States into the war, parallels in
way what has happened in the British
security markets since Britain cast her
lot with France and Russia in 1914.
The readjustment and realignment
abroad has been spread over a period
Of three years. Here it has taken place
in n comparatively brief space Of time
and the end is not yet apparently in
sight Conditions underlying the ac-
ton Of the two markets have differed
somewhat, as America has enjoyed
great wave Of prosperity, due to inn
mense purchases Of munitions here by
the Allied governments.
As affording a possible clew to what
may be expected of the American Sc
curity markets if the war continue.
long, a special investigation of the wars
effects on British securities, prepared
by James II. Oliphant e. Co., is particu
larly interesting at this time. 1t points
out that investment securities OF al
most every kind have shown a serious
decline in prices in the British market
since 1914 This downward trend Of
values has steadily continued despite
the fact that many price restrictions
were not removed before the close OF
1915 and despite the fixing of rates in
1916, at which the government stated
its willingness to borrow a vast num-
Der Of securities Of the investment
class
In leaning the securities to the gov
eminent an additional / per cent was
Melted by the investor, and this attrac-
tion caused n large number of stock
and bond holders TO remove their Sc
curities from the market. The reduc-
ton of the bank rate (Which was adj
vanced 10 6 per cent IN the latter part
Of 1870 first to 5i2 per cent and then
TO per cent acted as stimulus 10 the
market this year, and the entrance or
the United States into the war, remov-
ing as il did somewhat the pressure on
British government public borrowings
and assuring the eventual success OF
the Allied cause, was also a bullish
factor. The price revival has been but
slight, however. and prices still CON
tinue at low figure, with prospects OF
going lower
Price Average Low
Present prices of British securities
are as a rule we'll below the 1916 aver
age British consols. for example, are
quoted at the present time at 90,
against an average Of 5Sis IN 1916,
50 in 1915 and an average price from
January to July, 1914, of n. English
municipal bonds are now on the aver
age about points under the average
level of 1916. London city consolidated
3i2s, which were quoted at 1854 IN
1915. dropped 20 87i2 in 1915. and are
now around so.
The aggregate loss suffered by Brit
ian municipal issues is estimated at
more than $500, 100000. British gov
eminent. municipal, county and colo
NAL bonds are listed to the total ap-
proxinate amount OF $4,000, 100000
and represent about 20 per cent OF the
total amount Of securities dealt in on
the London stock Exchange. The total
decline in selling price or market
values of these securities exceeds 81
500. 900, 900. Added TO this shrinkage
in the war issues of the government
and the loss in market value would
probably reach $4,000, 100000.
Railroad Stocks Suffer Also
British railway securities at the pres
ont time are considerably under last
year's average The aggregate par
value of eight leading railroad COM
mon stocks amounts 70 more than
$500 200 900. The decline IN their
market value since 1914 totals more
tban 5000. 600 900. Guaranteed and
preference stocks Of British railroads
show drop of about sl56,O0O,oOO. or
"A per cent, in the aggregate. Inc
aggregate par value OF six OF the best
known English railroad bonds ia s125,-
GOO 900. Their aggregate market value
has fallen $4,000, 900 since the war
began.
Jndustrials No Exception
There is hardly an industrial com
many Of importance IN Great Britain
which has not participated to some ex-
tent in the war business. The earnings
OF industrials have, as whole, oeen
maintained up to pre-war standards
Despitc that fact all, or practically all,
Of the bonds and limited preference
stocks Of these companies have declined
in common with other investment Sc
curities. and many of the ordinary or
common shares are likewise selling be-
low the pre-war level. or the 100 most
active industrial breweries, textiles,
etc. listed on the London Stock Ex-