The Washington times., 1917-03-11
Bank Resources Kept Liquid to
Meet Financial Demands
in Event of War.
ANOTHER PROBLEM FACED
Effect Of WarIike Preparations
on Business, Commerce, and
Securities Considered.

Whatever its likes and dislikes may
be with respect to public servants al
Washington, Wall Street is essential
ly patriotic, and will stand solidly
behind the Government In a crisis
This has been demonstrated again and
again. Hence IL was with the great
est Indignation, bordering on fury
that the current week was ushered in
entirely reflective of the feeling
throughout the length and breadth OF
the country. This remarkable ebul-
lition of sentiment 1t Is scarcely
necessary to state, was brought
about by the disgraceful 'filibuster
Of a small group in the United States
Senate operating to withhold support
from the President at a moment
when the best interests of the nation
called for a united stand IL the Gov
ernment was not to be rendered
helpless land contemplate" in the
eyes of the world.
But while the United States was
thus placed momentarfly in a false
light, particularly. in the estimate
of Germany and her allies, IL was
able attitude of the American people.
In view OF the Presidents latest
move, there can be now no ques-
tion that America Is ready to go to
war IL that is the only way to main
tain its rights and its honor. That
such will be the outcome OF the arm
ing of American merchant ships, very
few in financial and securities cir
cles doubt. Accordingly, bank re-
sources are being kept liquid IN an
ticipation of the eountry's financial
requirements, industries are being
mobilized, military and naval pre-
paredness is going on apace and peo-
pie in the trend OF their thoughts
and actions already consider that the
country is in a virtual state Of war.
Two Main Considerations.
Before expiring by Limitation last
Sunday, the Sixty-fourth Congress
passed bills carrying appropriations
totaling 81 ,352. .O0O, 900. in which sum
are included $535, ,OO0, 900 for the navy,
$150,OO0,O 900 for naval construction,
$51, 900 900 for Qualifications and so
on. Because of the filibuster Con-
gress failed to pass appropriation bills
aggregating $511 ,0O0, 900, the most i'm
portant of which. in view Of the pres
ent crisis, was the army bill carry
ing $27O. 900.
c.. -, @ a. C-
s,.s..,. a. 90. y. ,DS',si,n -
parations on business. commerce and the
securities markets. The bond market
has naturally been in a subdued state
for some time. Transactions have been
relatively few and prices generally de-
pressed. although within narrow limits.
The effect Of a big Government issue Of
DouS Uh .ne p'SeS a. u s s,1H,..1. tssS 1,-
~" .toni A., y 49,. a, = sn,o... ,-,. p.oD
,'.,iiaN. - -. ...s .ei.o
81 i 20 w I' - S.s -. 20.
:. C....' 80 - = - - go
20 ooo a.. - a S
. =. A., , -. -, -. - -.
=. H--,I S.lHS,i. e. -
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'''S " POP1'"'
Ranks Prepared to Bid.
T,is do,,b,,,I In sor,e o;,a-,s-. 4, q,
-.
''Se Vi 'i'iS Butt "ouiu meet VII"
the popular success which the Govern
ment seems to expect. There are. doubt
less. many Investors who would consider
n their pstriotic duty to subscribe Iib-
eraIIy. and il NAV be that enough might
no found 10 take the entire issue II
NAV be presumed that banks would also
he nrenared 10 Subscribe IiberaIIv de-
snite the fact that the Goyernment has
not found il necessary to confer as vet
with the banking fraternity. IL Is un-
derstood however. that country hanks
in many cases think they should have
at Least 4 per cent for their money. The
Important fact is that the banks have
large reserves and are in general In a
good LIQUID state to come to the help
Df the Government when needed. a fact
by the Federal Reserve Board
In its statement Withdrawing the ban on
bank investments in foreign loans.
As TO business and commerce in gen.
eral. not little embarrassment has been
experienced through the tying up OF
neutral shipping by the German subma-