davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1918-04-07
Rediscount Rates
Are Advanced by
Reserve Bank
Readjustment May Result
in Higher Charge for
Carry Bonds

General upward readjustment of its
rediscount rates was announced yester
day by the Federal Reserve Bank of
New York as result of the 414 per
cent interest rate on the third Liberty
Loan. The bank also announced that it
would charge member institutions per
cent on loans secured by 90-day COM
nercial paper where borrowings are
made for period of ten days.
This marks a new departure in redis-
counting at the local Federal Reserve
bank, and it is believed it will prove
popular during the Liberty Loan CAM
palgn, in view of the provision in the
war finance bill which obviates the
necessity of paying the stamp tax on
loans of this character. Other changes
announced yesterday were:
Flfteenday advances on both COM
mercial paper and Liberty loans now 4
per cent, instead of Il per cent; dis
counts on maturities running from Is
TO 80 days, Az per cent, instead of y
per cent, and on Liberty loans. 4i4 per
cent. instead OF per cent; trade ac-
ceptances up to 90 days, now Az per
cent. instead of per cent; discounts
on agricultural paper over 80 days are
unchanged at per cent.
These higher rates for discounts and
advances became effective yesterday in
the case of New York City banks, while
IN the case of out-of-town banks they
become effective on receipt of the an
nouncement sent out by the Federal Re-
serve Bank last night.
The latest upward revision of the re-
discount rates is expected to have an
important bearing on the rates to be
charged by the member banks to their
customers for carrying Liberty bonds
At present the informal Arrangement is
that they will make advances for the
lirst ninety days at 4 u per cent, sub
sequent renewals being a matter of ad-
justment between the individual banks
and their customers, with the probabil-
lty of higher rate. The fact that the
Federal Reserve Bank rate has now
paper may cause the member banks to
put up the initial rate one quarter of l
per cent.
Significance is also attached to the
change in the Reserve Bank rate for
three months paper, because of the ef-
feet it may have on the rate of interest
allowed by New York banks and trust
companies on their demand deposits
According to the recent Clearing House
amendment the banks and trust COM
panies agreed to pay an additional one
fourth of l per cent above 1 per cent
for every one-half of l per cent that
the Federal Reserve Bank advances its
rate above per cent. Heretofore, with
the bank rate at 4 Y per cent, this made
the deposit rate pa per cent, which
may rot be changed for the present, as
the Federal Reserve Bank rate has been
raised by less than half of l per cent.
When the second Liberty Loan cam
raign was under way the Federal Re-
serve Bank operated with discounts of
per cent for tifteen-day advances on
both commercial paper and Liberty
bonds, and discounts Of 4 per cent in
the case of commercial paper and y
per cent in the case of Liberty bonds
for discounts up TO ninety days, not
wlthstanding that the bonds bore in
New-York tribune., 1918-04-07
Money and Credit

Surplus reserves of the Clearing
House banks decreased $16,751 ,4SO last
week, this item standing at S44, ,647,64O,
according to the statement issued yes
terday. Loans and discounts decreased
S43, ,634 900, to s4,291 1927 900. A further
reduction in United States government
deposits was noted, the tota! falling
from S291, ,415,00O to 1928 9,9O3,0O0.
The Federal Reserve Bank of New
York carried new item in its weekly
statement, the liability column show
ing foreign accounts" of $72, 1927, ,772.
While no statement was made explain
ing the meaning of the item, it was
understood to represent certain for
eign government funds held tempo
rarily by the local reserve institution
Rediscount operations of the reserve
bank decreased from $378,S03,594 to
362,255,63 last week. Gold in the
vaults Of the bank was reduced by $5,-
100000.
The actual condition Of member
banks shown by the Clearing House
statement yesterday follows:
New-York tribune., 1918-04-07
Railroads Ordering Bridges

The railroads are said to be placing
moderate sized orders for shop equip
ment, bridges and other structural
work in addition to the contracts which
are being directly placed by the gov
ernment. The Chesapeake e. Ohio, it
is reported, is asking for bids on two
bridges requiring 1,400 tons of steel
and the Minneapolis. st. Paul g. Sault
Ste. Marie has placed several orders
for deck plate and plate girder bridges
with western shops. In the first quar-
ter Of this year it is estimated that car
builders have received orders for 10000
railroad cars calling fer approximately
100000 tons Of structural steel.
New-York tribune., 1918-04-07
Corporate Returns

Otis Elevator Company.-The annual
report for the year ended December 81.
1917, shows net earnings of $1,7SS.577,
compared with S1,O3B,588 for the pre-
cedlng year
American Graphophone.-Th COM
pany's annual statement for the year
ended December 81 last shows a net
income Of S634,195, compared with ST.
373,599 for the year before.
Hudson & Manhattan Railroad Com
pany.-Net income for the year ended
December 81, 1917, amounted 10 ST.
S54,381, compared with s2,S77.537 for
the previous year. After s685,OO re-
serve and S2,167,53 interest on the
New York & New Jersey 5s. first mort
gage 4l2s and first lien and refundng
5s a balance remained of 81 SAT avail
able for the adjustment income mort
gage bonds, compared with 1892, 1875 for
1916.
Manhattan Electrical Supply Com
pany.-A total surplus of $7S6,355 was
reported for the year ended December
81, 1917. compared with S411, ,637 for
the preceding year.
New-York tribune., 1918-04-07
National Lead Declines

National Leads response on the
Stock Exchange yesterday to the publ
cntion Of the company's annual report
was a net decline Of ia points on a
turnover Of only 200 shares. The weak
ness in this ISSUE in sharp contrast to
the strength in the rest Of the market
caused considerable comment in brok-
crage offices particularly in view of
the fact that record earnings were re-
ported. The decline may have been
caused by the remarks Of President
Cornish, who poinHd out that trade
conditions are not particularly en-
c0urapinP.
New-York tribune., 1918-04-07
Other Cities

Many State Banks in Reserve System.
-WASIIINGTON, April 6.--Thc Fed
eral Reserve Board announced to-day
that $50 state banks or trust companies
have been admitted to membership in
the Federal Reserve system. Their to-
tai capital is s255, 600, surplus $780,
100000 and resources s6.24S 100000.
The Citizens Bank and Trust Com
pany of New Orleans, with resources
OF 1922 900, was admitted to-day.
New Souvenir Coin. - WASHING
TON, April 6.-The House to-day
passed bill authorizing the issuance
of 100000 hfty-cent pieces commemo-
rative of the Tooth anniversary of the
entry of Illinois into the Union. Rep
resentative Fuller, of Illinois, its au-
thor, stated it would be done without
ccst to the government.
New-York tribune., 1918-04-07
Paying Of French Credit
Funds to Meet $5,O0O,OOo
Maturity Received

Bonbright & Co. announced yester-
day that funds had been received from
the French banks participating in the
sl5,coO,OOo French export credit of
March II, 1917, for the payment Of the
first s5,o0o,oOo instalment under that
credit due April 10, 1915 This is the
initial payment on the last Of four
credits for like amount, aggregating
100000, 900, which were arranged bv
Bonbrlght e. Co., Inc, for Schneider &
Co., the big French munition manu-
facturers, for the purpose of financing
the latter's large purchases of war ma
terials in this country.
New-York tribune., 1918-04-07
Regular Declarations

Bangor Railway & Electric Company
Quarterly dividend of ia per cent on the
preferred stock. payable April to stock
holders of record March %.
Dominion Steel Corporation. - Quarterly
dividend of i2 per cent the preferred
stock. payable May l to stockholders of rec
ord April 10.
Kentucky Securities Company-Quarterly
dividend of / Il per cent on the preferred
stock. payable April j. to stockholders Of
record April l.
Manhattan Traction. Light & Power Com
pany.-Quarrerly dividend OF per cent. paya-
bic April Is to stockholders of record April |.
Pennsyivania Lighting Company.-Quar-
terly dividend of / u per cent the pre-
ferred stock payable April - to stockholders
OF record April s.
United States Rubber Company.-Quarterly
dividend of X per cent the second pre-
ferred stock payable April 80 to stockholders
of record April IL.
Utah Gas & Coke Company.-Quarterly
dividend of ! a per cent the preferred
stock. payable April ! to stockholders Of rec
ord March 30
West Penn Power Company.-Quarferiy
dividend of Ia PEI cent ON the preferred
stock, payable May l TO stockholders of rec-
ord April 20.
New-York tribune., 1918-04-07

OF the raw material bought bv the
cotton mills. ~ 'Ne
1t IS becoming more and more clear
that the American consumption this
season, plus the probable exports
VIII be substantially less than the
commercial crop.
Not little cotton will therefore
remain unsold at the end of the sea
son, and it is a question whether the
holders will try to sell it or prefer
70 carry it over rather than break
the price. Their attitude will prob
aaoly be determined by the outlook
Tor the next crop.
II as the season develops a large
yleid and further addition to the
surplus should be indicated holders
nay become less imperturbable.
Meantime it is we'll to bear in mind
thac pending the advent of peace the
consumption of cotton will be limit
ed to the spinning capacity of the
American mills (Which has appar-
entity reached it's maximum) plus the
possible export demand, which is not
likely to Increase while the tonnage
available is decreasing
New-York tribune., 1918-04-07

In foreword to the new and
unusually interesting investment
economist section of the country's
leading transportation magazine,
The Railway Age Gazette" Frank
a. Vanderlip delivers a message that
should be read by every banker, in
dustral leader and business man in
this country, for upon the extent to
which it is understood and appreci-
ated depends the future prosperity
Of the nation. Mr.. Vanderlip SAYS
There has never been time when
it was more important that the pub
lie should be impressed with the
community value of capital than now
he waste of wealth going on at the
present time is appalling. Enor-
nous debts are being piled up, for
the payment Of which the good faith
OF the nations is sacredly pledged.
Economic relations are being radi-
cally changed by the pressure of con-
dltlons which are themselves tempo
rary, and there is evident danger of
appear. To meet this situation with
out disaster industry must be sus-
tanned after the war by large new in
vestments in constructive work.
There never is full employment for
the industries except when such in
vestments are being made. The al
most complete absorption of surplus
incomes by public loans during the
period of the war will throw the
country behind its normal develop
rent, and in order to recover this
lost ground, as we'll as to provide i'm
mediate employment for the coun-
try's wage earners, it will be impor-
tant promptly to organize our re-
sources to finance these new opera
tlons. That the wastes of war shall
be made good, that the debts of the
war shall be paid, that every man
and woman wanting employment
shall be able to find it, and that the
efficiency and productiveness of in
Fl dustry shall be so increased that
wages may be sustained and the
costs Of living at the same time re-
duced-these are the aims to which
we must unitedly set ourselves when
the war is over.
New-York tribune., 1918-04-07
Agree on Lead Prices
Government Needs To Be Sup.
piled at &c a Pound

WASHINGTON, April 6.-The War
Industries Board to-day reached an
agreement with the lead industry
whereby the industry will furnish all
government requirements for lead
products 100000 pounds minimum
and 100000 pounds maximum ia
New-York tribune., 1918-04-07
'nth-at prices averaging 7 cents

month-at prices averaging cents
pound.
The prices agreed on are those now
quoted In the price list contained in
~ he Engineering and Mining Journal. !"
Inc agreement. an announcement by
the board said, will stabilize the mar
ket. 1t Will remain in effect four
months.
The maximum requirement of 70 ooo,-
oOO pounds month for the government
is ~ per cent of the entire lead out
put of the country. No priority orders
for delivery, therefore, will be neces-
SarV
New-York tribune., 1918-04-07

The above rates express the cost of
foreign money in terms of the Ameri-
can dollar. You buy an English pound
sterling at, say, s4.75as y. The intrinsic
parity is $4:S6Ss per pound. Thus you
say either that pounds are at discount
or that dollars are at premium, which
is owing to the fact that in England
the demand for dollars with which to
settle accounts in this country is greater
than the demand in this country for
pounds with which to settle accounts in
England.
New-York tribune., 1918-04-07
News Digest
New York

Bankers Meeting Postponed Owing
to the conflict with the Liberty Loan
campaign the proposed spring meeting
of the executive council of the Ameri-
can Bankers Association, at Hot
Springs, April 90, % and "a, has been
postponed and will be held on May 9,
10 and H.
New-York tribune., 1918-04-07

The market is so inactive that 1t
requires little attention, and Wall
Street keeps watchful eye on the
ticker more from force of habit than
from necessity. 1t is the consensus
Of opinion that the prevailing stolid-
ity will continue for considerable
period. Therefore traders who ordi-
rarily are interested only in the fluc-
uations from hour to hour are tax
ing advantage of their idle moments
to look further ahead than is their
wont, and one may hear in any
brokerage house much interesting
speculation as to the future of the
market. In general opinion is sur
prisingly optimistic. Almost with
out exception those who are willing
to venture a forecast--and there are
many Of them-believe that. barring
only an unexpected German victory.
the prospect for higher stock prices
in the next eight months is favor
able, and even among those who do
not subscribe to this view the major
ity seem to hold that no important
reaction in prices from the present
level is likely to occur. With the
average Of prices some thirty points
below the high level reached on the
crest Of the great bull speculation
that terminated in December, 1916,
with stocks more strongly held than
ever before and with speculative
commitments extremely small in vol
ume, it is pointed out that the mar
ket is in very strong position. The
technical strength has been demon
strated time and again in the last
few months; for instance, when the
shock caused by the Garfield fuel or
der was received with scarcely a
tremor. And, says the trader, what
doesn't go down must go up. In sup
port of this view he points to indus
trial earnings. Even though the ex-
cess profits taxes paid by most cor
poratlons were larger than had been
estimated, the balance for stockhold-
ers in the majority of cases was
fully as much as could reasonably
be expected-sufficient in ordinary
times to warrant higher prices for
stocks than those which now prevail.
Moreover, there are not a few who
believe that the government will be
satisfied with the amount derived
from taxation on existing schedules
and will not increase the imposts
this year. And so, the trader con-
eiudes, when we shall have attaind
quantity production of airplanes and
other things required for war. when
the output of ships reaches expecta-
tons, and when we have a great
army IN France-in other words,
when we are really in the war
there will be revival of confidence
IN security values, and the public
will once more take an active inter-
est IN the market. That, in sub
stance, appears to be the majority
opinion IN Wall Street about the
future Of the market. 1t remains to
be seen whether or not Wall Street
Is right. a year ago, when we en-
tered the war, it held much the same
view, and even went so far as to pre-
dict the exact time when bull mar
xet would start. 1t was very wrong
tnen; perhaps it is this time also.
New-York tribune., 1918-04-07
Anaconda's March Output

Production of the Anaconda Copper
Company for the month of March
amounted to 2s,o0O00O pounds com
pared with 24,l00,0oO pounds in Feb
ruary and 24,084, 900 pounds in january.
In March, 1917, the company's output
was 81 10000 pounds.
New-York tribune., 1918-04-07
Relevant Comment
Steel Needed for New Assay Office

Steel Needed for New Assay Office
1t is estimated that between 900 ana
1000 tons Of steel in various forms
will be used in the construction of the
Government assay office on Wall
Street The greatest tonnage will be
for the interior work and for the vaults
which require special armor plate. 1t
is believed that about 600 tons Of rails
and probably an equal amount of plates
will be needed, besides 200 tons of
steel plates before the building is COM
pl ated.
New-York tribune., 1918-04-07
Elections

NJ. A. Morrison, B. W. Lynch and
II. c. Cummins were elected directors
of the Northern States Power Company.
Mr. Cummins succeeds ". r. Thomp-
son, resigned.
New-York tribune., 1918-04-07
count for each of thu twelve Federal
districts are as follows:

Bank Clearings.-The days bank
clearlngs at Nev York and other cities:
Exchanges. Balances.
New York. .S543, ,655,557 S51.0o1.e52
boston ...... 43,46e,363 5,408.764
Philadelphia .. 54,753,359 1O.7o1.372
New-York tribune., 1918-04-07
Dividends
Extras

Grass Creek Petroleum Company
All extra dividend Of per cent has
been declared, in addition to the rcgu-
lar quarterly dividend Of 3 per cent.
both payable May to stockholders Of
record April l5
New-York tribune., 1918-04-07

terest at the rate of per cent. 1t was
not until late last December that the
rates were advanced half of l per
cent.
New-York tribune., 1918-04-07


follows - TAs "eeA a.
RESOURCES
April 5. March
Gold certificates in s4a37aoooo
Soia 1und r. H. board)
~ ~ 1eN "se"e'e''''' .''''''''''' 52SooOO0 5250OOOO
r., /, Total l god held by banks se174aOoo se42o1sooo
God da1 er@ reserve agents a73o7Ooo
- 0AN''''''''''''''''''''' 23,o4OOO
Total gold Observation-Disclosures. sts1ae24ooo s1sts7o4ooo
Aeea tender notes. silver etc 6a5oeooo 5sa5sooo
Total $s7743aooo s1874o65Ooo
Bs 573883CCO 58322aCEO
0's oo"sn IN open 32650oo0 3olO65cCo
. Ioa bills on hand seooaseooo sas72ssooo
states government
an nas govelnt short ter" securities 2eo4ooooo
' 0'N- 9"'''s @Sse'''' 3222oOO
Due fpom @ hng Fda assess s1224ooo
Uncolected items $1,000.
Five per cent redemDon fund sn Eed s366o5oo
Reserve note $4,000
All other ....................
Tot resou ......... $3,459e59Ooo
LIABILITIES
Capital Observation-Disclosures. s74,4e4ooo s74223ooo
Surplus 1134OOO
Government 1o488ooo
14739400O
Collection 226129O0o
Other deposits
Total s19ot 442oco
Federal Reserve
Federal Reserve Bank in
. net liability ...................... 7e7sooo
All 0her h'o'ltles.' 9s33ooo $4,000
Total liabilities. s34459a4 COO
Ratio gold deposit
Lies coAiDi"ed, ooa per cent week before 6OS
Ratio total
ties combined, 624 27perce
New-York tribune., 1918-04-07

Below is given the current exchange
value of foreign money in dollars and
cents, together with the intrinsic gold
parity, as calculated by the United
States Mint:
New-York tribune., 1918-04-07
Market Barometers
Stock Exchange Transaction

January I to date:
1918. . .4,1s3,7oo 29,444,5oo 33,eaa. 200
1917. &, 1857, 800 47,o2e, 400 52,6ae, 700
1916. :. ,5,e15.5o0 39,6s2,9oo 45,26s, 400
New-York tribune., 1918-04-07

Cotton, the political commodity,
oeing immune from arbitrary inter
ference with the law of supply and
demand, rises steadily to new record
Prices. In the New York market
last week the spot price reached Sc
cents a pound. That s 80 per cent
aoove the top price of any year, ex-
ceps 1917, since Civil War times
when production necessarily was
greatly curtailed and commodity
values were expressed in terms of
appreciated currency. Yet no seri-
GUS attempt has been made to fix the
price Of this staple, nor would such
an attempt be likely to succeed as
long az the South retains control Of
the political machinery. If it were
NOT Tor the fact that failure to as
sumo control of the price of cotton
"hen the price of wheat is fixed
'o'lousiy Is discrimination in favor
u the planter as against the mere
farmer, there would be no occasion
i'r tampering with the South's lead
ing product, but high cotton prices
result in high prices for cotton
goods, and the wheat farmer natu-
.aiiy IS dissatisfied. His profits are
united, but there is no limit to the
prices ne has to pay for the clothing
as must buy. That is the complaint
"eafd from farmers the country
over. We believe it il iustif;ed
New-York tribune., 1918-04-07

Federal Reserve Banks

April 6An earning
ana oo in Federal Rese shown by
statement
business last night which with preceding
New-York tribune., 1918-04-07

An interesting phase Of the cotton
@.soasion is that, while the supply
~ cotton goods is not sufficient to
Ass' the governments requirements
1ao all the civilian demand az well,
A'Sls ~ no real shortage Of the raw
s."iuct. Theodore II. Price, an au-
s.'f'ty. on cotton matters, sums up
'as outlook this way:
ING civilian demand for foods is
e.ksiy In excess Of the productive
+ Spacity Of the cotton mills after de-
sssesinH the share Of their OUTPUT
sst tns government is taking. fhs
s.s,rta2e of labor and the inposxihil-
M getting new machinery make
mpossible for the mills To expand
= MI production, and their consump-
t ~ oi the raw material Ia not likely
s1ce@d sast years record.
~e may therefore gee very hiph
.sss Tor cotton goods without any
VS'esssbls inereage In the quantity
New-York tribune., 1918-04-07


ments, etc. 81 ,291, 1877, 600
Cash in vaults of Federal
Reserve members. ..... 103, ,840, 900
Reserve in Federal Re-
serve Banks 51e,533, 600
Reserve in vaults of state
banks and trust Co.'S. 1e,eea,ooo
Reserve in repositories. 8,641, 600
Net demand deposits -. 3,762, 1863, 600
Net time deposits ........ 1876, ,796, 900
Circulation ...........,.. 1885, 900
Aggregate reserve........ 545, 167 600
Excess reserve. ........... 44,647, $40
United States deposits deducted,
1928, ,903,0OO.
The changes from a week ago were:
Loans and discounts Dec. $43, ,634, 600
Cash in vaults of Federal
Reserve members. Inc. 1,758,000
Reserve in Federal Re-
serve Banks Dec. 1851 900
Res. in vaults of state
banks and trust COS. Dec. $4,000
Reserve in repositories Inc. 821 600
Net demand deposits. Inc. 100000
Net time deposits Inc. 2,441 600
Circulation Dec. $1,000
Aggregate reserve. Dec. 15,333,00O
Excess reserve. Dec. 1915 .480
Bank Acceptances.-Bid rates quoted
we're as follows:
Thirty Sixty Ninety
Spot delivery: days. days. days.
Eligible member ., .
banks .+Ts 10 4Ze 10 -7s 10
j,ln -
A'ix. ber banks .4M% 41z% 41z%
Ineligible bank r -
bills o/1 10 S/4 70 WEI 10
For delivery within thirty days:
Eligible member banks. ......4 .43s%o
Eligible non member banks. 49,. ga 70
Ineligible bank bills............6 IS 20
London Money Market.-LoNDON,
April s~-Money, 3 per cent. Discount
rates~Short and three months bills,
per cent. Gold premium at Lis
bon, 1870.
siIvcr.mBar silver in London was
45%d; of Ad; New York, ol%c; down
Xc: Mexlcan dollars, 74c, unchanged.
sub-Treasury.-Th banks lost to
the Sub Treasury yesterday $4,000.
Discount Rates.--Ofl1cial rates OF dis'
New-York tribune., 1918-04-07

Closing rates yesterday, compared
with week ago, follow:
(QuOted dollars tn tho ro,,J\
New-York tribune., 1918-04-07
Bank Acceptances.-Bid rates quot

For delivery within thirty days:
E1ipible member banks .42s "a
Eligible non member banks. 80. ga %
Ineligible bank bills............6 IS "a