davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21
Monday, May 2f, 1917

From the Wall Street point of
view the one outstanding feature OF
last week in finance was the sudden
reversal in stock market sentiment.
Within the brief space of few days
much of the pessimism that has per-
vaded investment and speculative
circles so long has given way to
optimism. Whether it has been due
10 the better Russian situation,
whether to the speeding up of the
United States governments war pro-
gramme, whether TO the progress of
the Liberty Loan or whether to the
combination of all these is unim-
portant. The fact remains that feel
ing on all sides is much more cheer
full, and this has been reflected in a
substantial recovery Q in security
values on the exchange and in other
markets. That such recovery had
long been due because of the severe
setback the market had sustained
was generally believed, but this did
not detract from the better feeling
generated by the upward movement
of stock values. In three days time
United States Steel common stock
rose more than 6 points and estab-
lished itself at the highest level of
the current year, a price that was
not far from the record of 129&,
made in November last year. Other
industrial shares, with some excep-
tions, also underwent marked i'm
rrovement. Railway issues did not
Go so well, but they at least held
their own. In the weeks movement
it was quite apparent that profess
sional pools were operating in many
Of the industrial shares. Most of
the buying came, however, from the
covering operations of traders who
had sold the market for the decline.
While there was not much evidence
of an increase in public participa-
ton. one of the most important de-
velopments in connection with the
stock market rise was the absence of
liquidation of long accounts, which
! had been such a factor in depressing
prices on the decline Of the preceding
week.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21
BY CHARLES FERGUSON
From an article IN the Journal Of
the American Bankers
issociution.)

From an article in the Journal Of
the American Bankers
Associotion.)
"O DOUBLE or quadruple the
food production of the United
States it is merely necessary
TO change the method and dlrec-
ton of financial forces. AS things
stand every American community is
equipped with a powerful social en-
CINE for the modifying of economic
energies. This engine has never
been worked TO quarter of its ca
pacity. | refer, of course, to the
most marvellous of modern motors
the internal combustion and triple
expansion engine of industrial credit.
The editor of "The London Statist"
remarked the other day that the
world at war is coming to an under
standing of the fact that finance is
nothing but the Organization of
skills." The soundest finance is the
finance that makes the most Of the
manifest or latent abilities of COM
munity to produce goods.
Nobody who has given a moments
thought to the subject can suppose
that any American community has
ever done its best, or anywhere near
its best, to master the physical diff
Culties of existence with the tools
that are furnished by the present
state of the arts. To say that we
can do four times as much as we
have done in the matter of food sup
ply and in every other vital matter
at the same time is cautious I'M
reinstatement. The statement be-
comes still more conservative if the
problem proposed is not to quadruple
production in all branches at once,
but to get more food by turning
greater proportion of our energy in
that direction than in any other.
And that is in fact the way the prob
lem ought to be posed at this mo-
pent.
The whole subject is blurred and
confused by a general failure to un-
derstand what the editor of "The
London Statist" has at length come
to understand. We go on treating
finance as the Fuggers and the
Frankfort Rothschilds treated it-as
if it were an economy of precious
metals. Or, if we have got beyond
that conception, we are likely to stick
fast in the notion that finance is lit
tie more than the organization of
ownership and the manipulation of
ownership certificates.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21
Banking and Productive =.
Power Coincide

The truth is, | submit, that the
bank power of any community is
limited only by its productive power,
that productive power is mainly a
matter of quickened imagination,
strengthened incentives and improve
ment in the correlation of personal
forces, and that the technique of
banking consists principally in main
tanning practicable proportion
among the various kinds of enter
prise. Productive power can rise to
quite Unreasonable heights if this
proportion can be maintained, and if
people can be aroused to go to work
as they go to war.
Now, it appears that the legiti-
mate business of finance is to effect
such an arousal. In sound theory
and potential fact the modern credit
system is an admirable social inven-
ton for getting out Of every man
the best he has to give. 1t is in eff
feet a new kind of governmental
government not by repression and
enforced conformity to the settled
ways. On the contrary, it is gov
eminent by appreciation and promo
ton. 1t operates by authoritative
appraisement of the relative value of
persons and projects-for the uses
of the community. And its general
aim is not TO keep things fixed, but
to keep things moving.
The effectual sanction of this new
kind of government is not the fear
that you may be shut up, but the
fear that you may be shut out-that
your credits may be withdrawn and
that you may be severely let alone
while the procession of power and
honor passes by.
In order to increase the supply of
food and of other necessary things
in the United States, it seems that
we must come to understand that or
gained ownership must-for the
sake of its own securities-submit
itself TO the mastery of organ
lied creative intelligence. The en-
gineer and the master of life
sustaining forces must somehow
get into the bank and must sit
at the top of the board Of direc-
tors. Organized ownership must
cease TO be the incompetent master
of competent tool power. 1t must
save itself from initiation and col
lapse by accepting its right place of
security and protection as the cher
ished servant of the strength that
luilds cities and subdhes the earth.
For my own part ] am free to
confess that I see no way to fend of
famine for good and all in any COM
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21

The current issue of "The Finan-
cial Chronicle" devotes space to an
article on economy and thrift. ITO
provide seven billions of dollars in
one year for an abnormal use is a
tremendous task" it says, "even for
people of great wealth. There are
many opinions as to where the huge
fund is to come from. A prominent
banker asserts that it must come out
os savings from future earnings,
since, he declares, present capital or
savings are already invested, speak
ing generally, of course. And to
this it may be added that the de-
posts of customers Of the banks
are at the moment practically all
leans to the individual borrowers at
the banks. As to the actual money
in circulation or in the pockets of
the people, if it be withdrawn it
must be placed in the banks, and by
reason of ordinary business demands
checks must take its place. &.
The total effect of the withdrawal of
seven billions of capital from future
investments of the ordinary form
drawing higher rate of interest is
rot only to diminish industrial en-
terprise but to lessen its momentum
and decrease its earning rate. AS a
people we shall have more to pay
and less means of paying it. If this
analysis is sound there is but one
remedy, increased exertion on the
part of everybody. No doubt in the
personal equation the individual will
find ways and means of economy
which will least interfere with his
welfare and with that Of his bust
ness. The high cost of all commodi-
ties will compel economy in the
amount of consumption and use,
whether the individual wills it or
not. And this, in view of the world
needs, is in the right direction. But
beyond everything else the business
ball must be kept roaiing. There is
che certainty-we have got to dig
down deep to raise the money and
then dig hard and long to pay it."
To which may be added that there is
little to be feared as to the ability of
the business ball to keep rolling. The
only danger>is that it may not be
kept rolling in the proper direction.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21

Dealings in the general bond mar
ket during the last week have been
desultory and listless. This is not
surprising in view of the fact that
the energies of the whole financial
community are now centred upon the
sale of the Liberty Loan. There is
sort Of gentlemen's agreement be-
tween the large investment houses
and the banks TO concentrate all their
efforts in promoting the sales of the
government bonds to the exclusion Of
almost all other business in this field.
Most Of the large houses have loaned
the machinery of their sales depart
ments TO the distributing committee
Of the Liberty Loan. AS a result OF
all this temporary diversion Of effort
dulness in the bond market on the
exchange and over the counter has
been greatly aggravated. About the
only cheerful feature Of the market
as it now stands is the apparent
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21

Some interesting conclusions are
drawn on the effect of wars and revo-
lutions on government securities in
{: timely discussion of that subject
prepared in book form by E. Kerr, Of
the investment house of William
Morris Imbrie G. Co. at would
SEEM" it says, "that while wars and
revolutions have for short time
caused a lowering of prices of gov
eminent bonds, they have not af-
fected either the income of the in
weston or the security of the invest
ment. and to those who have bought
during the temporary depression OF
prices they have brought large gains.
1t is doubtful if wars, external or in
ternal, have had as much effect on
government securities as the eco
nomic and financial conditions
through which the countries have
passed, and which have considerably
rlodified the effects of specific events.
These, rather than the political dis
sension, would seem to be the deter
mining factors in the rise or fall OF
the prices of government securities
1t is pointed out that the only objec-
ton to a government bond as distin-
guished from any other is that. in
case of non-payment of interest a
country cannot be forced into a re-
ownership and the only means OF
collecting is by "warship."
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21
New Highway for Pess

A broad avenue lined with W"
to connect the Peruvian eius,v .s
Chorrillos. Barranco, Mirafores, - =
dalena. Callao and La Punts; 49, -
ISOLATION known as the o'%A
Urbanizadora has beea formed M
proprietors of estates along W. "
posed highway, and this COMPANY ,s.s.
been authorized by the governnss
to begin work on the avenue q
so that it may be completed y !.. !.
end of September. "El I'll
states that the government. 4, .
furnish road machinery, as IN
trees and fencing. The avenys' a.
called "Avenida Mjramsr,' wiz u
teen metres wide. seven metres a.
used exclusively for autonioonhsi,;; iu
for horses. two and one-nsn. ar
n rS and one and ons,hsl, - y
irrigating bitches to keep the
growing
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21
Present Rural
Credits Inadequate

The field of banking and of great
business is full of sagacious and pub
lic-minded men who, in this unex-
ampled emergency, can hardly fail
to perceive and act upon the truth
that the production of food can be
immensely stimulated by turning
high voltages of credit power in that
direction. Rural credits of the kind
already supplied are certainly in
adequate. And an occasional half
million dollars, such as the fund Gre
ated by the Chemical Bank in New
York, amounts to little more than a
certificate of good intentions. What
is required is new spirit and new
sense of proportion in the whole
banking system.
1t appears that the bottom reason
Why ambitious young men have
given up farming and crowded into
the cities is that the new kind of
government of which l have spoken
government from credit centres
has heretofore withdrawn honor and
social backing from the farming
business and has concentrated in
merchandising and manufacture all
the power and prestige of modern
high-tension civilization. We can
meet our present emergency and can
at the same time restore the strength
and sobriety of our general social
estate by making a quick revisal of
the present state of affairs and CIV
ing the financial preference to agri-
culture. Surely such thing can be
done. Social changes of as great a
magnitude have already taken place
in France and Great Britain.
What we need is renaissance
ruralward, a turning of the whole
people for moral and economic re-
cuperation, and for the succoring of
half-starved world, to the subdual
of elemental nature and the perma-
nent conquest of primal necessity.
There is, l think, no extant power
that can negotiate such a change ex-
cept the power of organized finance
or else, if you please, power of
revolution in the field of organized
finance.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21

With the probability of drastic in
creases in the income tax rates, and
assuming that state and municipal
bonds will remain exempt, "The Daily
Bond Buyer" asks, What will be the
influence of the income tax on mu-
nicipals during the next few wears?"
Then it proceeds to answer its ques-
ton thus:
For the present the investment
markets will be glutted with tax-ex-
empt war bonds. The duration Of the
war must alone determine the amount
of such securities that will be issued.
Until they are fairly we'll absorbed
il is not likely that other bonds, tax
able or tax-exempt, will be in great
demand. In anticipation Of just this
condition the bond market has
sought a new and lower price level.
For the present no improvement IN
this respect should be expected, but
with the successful flotation of the
war loan or with the early close of
the war the demand for tax-eXempt
bonds should Immediately improve,
and it would not then be surprising
TO find municipal bonds even more
popular, with the individual as well
as the institution, than ever before.
The position of municipal bonds
at this time is, therefore. more salts
factory than that of other classes of
securities. While all bonds must suf-
fer temporarily as result Of the
governments financing operations,
municipals, which are favored by Fed
eral and usually by state and local
tax-exemption, by savings bank and
trust fund investment laws, by the
postal savings system law and regu-
lations and by their inherent safety
and general attractiveness as an in
vestment medium. should be the first
security TO improve, and may within
comparatively short time enjoy q
better market than at any time in
the past.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21

may find the country puissant with con-
fident vigor every man must benz 10
his present job, solve its new problems
and make il more significant in. his
community. Having done this. we can
turn TO the direct tasks OF wal. in later
months, when they arc ready for u.s.
The Nations Business.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21

Money rates, despite the important
government borrowing operations,
worked slightly lower during the
week. Time loans against Stock EX-
change collateral, which were quoted
at 5 per cent for most maturlties at
the beginning of the week, closed
around Az per cent. Call money
was in liberal supply every day
around 21a per cent. The action OF
the market indicates that the effort
of the banking authorities to effect
the large shifting of funds incidental
to the governments transactions
with the least possible disturbance
tc money is working out satisfac-
torily. Moreover, the weekly Clear
ing House statement in its relatively
small changes from the preceding
week points to the same conclusion.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21

The worlds youngest shoe buyer
is completing his purchase Of shoes in
Lynn, Mass. for the Norwegian shoe
store chain. which he represents. He
is Arid Schmidt. and he is only nine
teen. He has come to the United States
from Christiania. Norway. to buy shoes
for his fathers firm. Schmidt spent
nearly three years in this country
learning the shoe business.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21
Finance Economics
-.,, crprrr OFFICE. Telephone;
NH. Building 10 Broad ST. Hanover DOL"

siackening of liquidation by invest
ment holders who arc converting
their bonds in the new government
issue. The better feeling in the stock
market may have had something 70
Go with this change. although 1t can
not be said that the liquidation is at
an end. Speculative bonds have been
quite active this last week, with the
leading development furnished by the
pronounced rise in Russian govern
ment external obligations. The 61a
per cent loan jumped 10 points, from
so to 90, the day it was announced
that the United States had advanced
s1OO,O00,OOO to Russia, while the
5Iss moved from 76ia to SO. Other
foreign government issues have been
firm as rule. The average level OF
the whole market went lower again.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21
Fire Record

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New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21
DIVIDEND NOTICES

man is to include in his budget his ia.
creased taxes; TO be more eeononiesl
in food of which a scant supply ~
ported, and beyond that to spend ros.
mally.-Frst National Bank Of B'sioa
We are in a war y preserve our lib
critics. There is no exagyen.ion In
the statement. We now know enough
of what has happened to Belgium, to
its busy factories, to its women and
children, and finally to its non-eoa'
Blatant workmen; We know enous'
about the farreaching, deep-worklns
purposes of the enemy, toward coz.
mercial rivals, to have any doubt
what would happen if We should les
II is not an easy war TO win. We fst'
a real conflict. We must get ready
do our utmost. The success OF the Id
erty Loan means much TO Us ana 70
the enemy.-The Americas.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-21
Current Comment

III is more than strange to note the
undisturbed tenor of general business
in the midst of wars alarms. The
actual declaration of state of war
gave temporary and partial check to
the general volume for the time being,
and this was added to by the somewhat
natural tendency to institute at once
the practice of most rigid economy
because of the uncertainty Of the i'm
mediate future. The common sense Of
the many soon realized that taking
thought for the morrow has both its
value and its economic limitations, and
that judicious spending by the many is
the real source and sustaining power
Of commercial activity.
Despite the uncertainties of the stu
ation-the impossibility of forecasting
with accuracy the effect of the great
Federal bond issues, loans and taxes
which await us, and the still advancing
prices of commodities general
faith in the soundness of business is
strikingly evidenced by the widespread
purchases of what are known as "fut-
ures," that is, goods contracted for
now to be delivered all during the re-
mainder of the year. Meanwhile the
demand for current wants continues in
large volume, and the same difficulty
prevails in getting prompt shipments
from manufacturers, problem which
may be complicated by entry of the
United States government into the
market as a heavy purchaser in many
lines.
There is a prevailing feeling, drawn
largely from the study Of the past, that
war as a whole will prove a stimulus
to commercial activity, and that read
justment awaits the coming of peace
hrcher Wall Douglas, in The Nations
Business"
Our financial preparation for war
has overshadowed all other factors dur
ing the last month. The lack of def.
mite knowledge concerning loans and
proposed taxes has added confusion and
injected uncertainty into business. In
addition to the perplexitics necessarily
surrounding business men during the
transition from a peace to war basis
rumors Of drastic governmental pro-
grammes affecting basic industries have
unsettled business and, especially
among the smaller concerns, have
caused a slowing up in activity. Every
possible effort should be made, both by
public bodies and individuals. to foster,
build up and make profitable general
business, to the end that there shall
be a minimum Of unemployment We
need, as never before. huge purchasing
power. and We need to exercise it so
that general trade may flourish and
production be maintained at a max
imum. In this way only can We prop
erly earn the money to purchase our
government loans and pay the required
taxes. Already reports are heard of a
slackening in retail trade and conse-
auent dismissal Of employees due TO a
wave Of misguided economy and hoard
ing. At the present time it is far from
patriotic for those who have means 10
sharply restrict their purchases and
thereby check business. In the midst
of many conflicting theories, RRerhaps
the most rational plsn for N frage
Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1917-01-08
SECRETARY
DENIES He
KNEW Of
NYPEACE
N0TEPLAN,
BEFORE IT
WAS SENT
nBy Associated Press.l

WASHINGTON. ID. XII. Jan. s.-Backed
by President Wilson. Secretary Joseph T..
Iumulty today made 4 statement "a the
rules committee investigating the '1eak"
denying that he knew Of the peace note be-
fore i was made public by the press, deny
ing that he conferred with the broker Bar
nch and asserting that he never met Wood
who brought hIS name INTO the ease.
Supplementing TumuIty's statement,
President Wilson added note saving tn
rmlty had stated facts. that lie did not
know of the note until after il was made
public. Questioned an committeeman.
Iumulty testified that President Wilson
wrote the note himself, asserting that he IS
m expert typewriter in addition 10 his
other achievements
Tumulty testified that he never speculat-
"a in the markets and denied that he knew
most OF the brokers whose names were men
toned. lie said the last time he saw Bar
uch was Al the Gndiron banquet on Decem-
her when he merely exchanged greetings.
Secretary Of State Lansing. who was
called next, told NJ the highly confidential
manner in which the note was handled and
said that Tumulty had no knowledge of il.
Lansing like Tumulty said he never
speculated IN the stock market. He said
he never gave II a thought when asked il
he realized that his statement regarding
note 10 be sent might influence the stock
market
Thomas w. Lawson, the capitalist and
broker. while OH the stand this morning.
got INTO 4 running row with the committee
which resulted IN much of his statement be-
ing expungcd from the record and he con
cluded with the declaration that NJ could
tell where the 'leak" was. hut would not.