New-York tribune., 1918-03-18

the Capital Issues Committee sought
the advice of the governmental de-
partment under whose sphere the
enterprise happened to fall. The
committee usually approved appli-
cations on behalf of refunding is
sues without much examination, rn-
less it was possible for the corpora
ton to get the money in neutral
money market. In the case Of ap-
plications from colonial govern
ments and corporations the attempt
vas made to have them finance
their requirements in neutral money
markets, particularly in the United
States, especially before the latter
became belligerent.
The effect of this government
control over new capital issues
brought about profound changes in
the proportion of government loans
to other new capital issues. In 1917
issues other than government loans,
according to trustworthy estimates,
amounted only to l per cent Of the
new capital issues fioated, and in
1913 the reverse of this ratio ex-
isted.
AS a result of this supervision
corporations engaged in war work
have been able to float their issues
IL the money market, whereas those
producing none essentials have not
:nly been unable to get new capital,
>ut have besides been forced to cur
all their output in many instances,
largely because their capital has
been insufficient to maintain their
inventories at the increased prices.
Because of the need for more work
ing capital, many British corpora
tions pay out in dividends a smaller
proportion of their earnings than
before the war. This same reason
accounts for the enormous increase
IN bank loans to corporations. Gov
'srnment advances has been another
important contribution to the work
ing capital of concerns doing war
work. Bonar Law said in Parlia-
ment last August that the cash loans
to industry since the outset Of the
war had reached 945, 100000, and
were in many instances in the form
of prc-payments for war supplies.
Although the large municipali-
ties, which own many of the public
utilities in England, are now financ-
ing themselves in most cases with
out going into the money market,
they did go into the money market
and compete with industry for cap
ital during the first two years of the
war. The present plan is to induce
taxpayers to make deposits with the
local authorities. From the Eng
lish railways very few appeals for
new capital reached the money
market.
Little
Refunding
The problem of rcfunding in
England has been relatively unim-
| portant since the war began. One
reason for this is that there have
been comparatively few maturities
since 1914, and moreover at the
outset of the war there were few
note issues outstanding, and these
were almost entirely foreign. Be-
cause of the traditional surplus Of
money in London awaiting invest
ment, long terms Of financing be-
came the dominant British method.
Close supervision of corporate
financing in England has kept the
demands of industry harmonized
with those Of the government, and
to a large extent prevented compe
t:tion. An understanding Of the
extent of England's public war
financing presupposcs an insight
into the magnitude of the nations
assistance to her allies and her do
minions.
The advances of Great Britain to
those who are comrades in arms
With her in the international under
taking of crushing German militar-
ism up to the fiscal year ending
March 81, 1918, will amount to
@1,370, 100000, it is estimated. The
advances'up to September 20, 1917.
reached 1890, 100000. And the
total gross debt Of Great Britain at
the end Of this month will be ap-
proXimately s., 100000, 0,00O, accord
ing to estimates. Exclusive of the
advances, the debt will reach
24,439, 100000, an increase of
f3,729, 100000 over that of August
1, 1914.
In the face of this enormous debt
British bonds have steadily become
more marketable. Since the Treas
ury Department substituted the pol
icy of a continuous sale of bonds
instead OF having periodic cam
raipnc oct Mnvor, hc, A.. n,