davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30

Citations interested, and the ownership
carries voting power and control OF
the corporation.
According to the formal announce
ment, the new corporation will send
representatives to the leading markets
of the world and the services of the
Association will be offered to the
organized relief commissions of Bel
GUM and other countries"
In diagnosing the trade outlook. the
statement issued says: after four
years Of restrictive production there
is believed to be a shortage of cloth
ing in Europe. and the products Of
American textile machinery Will be
required to help meet the demand
Normally, the American textile in
dustry supplied less than our domestic
requirements. Production capacity has
not materially increased during the
last four years. and, in order to CO.
ordinate and stabilize both the Amer
lean and the European markets, this
organization, representing the industry.
has been incorporated"
The directors of the new corporation.
all of whom are in the cotton and
woollen trade are William H. Baldwin,
Cornelius N. Bliss, Bertram II. Borden,
Elisha P. Cronkhite, S. T.. Drihben.
Henry W. Howe, Manton B. Metcalf,
c. H. Milliken, John R. Mum. George
Nichols, j. Harper Poor, Frederick K.
kupprecht, Lorenzo Semple, J. P.
Stevens, Ridley Watts and Malcolm
D. Whitman
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30
War Financing
And Lessons of the Past

History knows of no war Of the mag
ntude Of the ono through which the
world has Just passed. The American
figures for the Civil War arc some
what Initiated as a basis for comparison
with the American figures in the re
cent war by the fact that they repre-
sent for the most part interest rates
on loans foated during q period when
the currency was greatly deprecated
in terms Of the gold and silver legal
units of value, and when the insurance
element was rapidly nuctuating one,
due to the ups and downs of the Union
cause. A more trustworthy historical
basis of comparison for study of
American interest rates in the recent
war would probably be London Bank
of England rates during the Civil War
The London figures show a down
ward tendency throughout 1861 and the
first quarter of 1862, and then a gen
cral upward tendency until the end Of
1864, reaching a maximum of 1856 per
cent for the last quarter Of 1864, fol-
lowed by a steady decline until the
last quarter of 1865.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30
" hen the Cost
OF Money Rose

Advances in interest rates during
1917 and 1913 would naturally have
been expected under the operation Of
the economic forces previously de
scrbed. OF course these forces were
greatly accentuated when the United
States came into war and when we be-
gan our tremendous war expenditures
accompanied by our large Aotation o.
Liberty bonds. The surprising thing is
not that interest rates rose substan-
TALLY in 1917 and 1918, but that their
rise was postponed until such late
date.
now can the prevalence of such low
interest rates throughout 1915 and 1916
be explained? The chief answers to this
question. | believe, are twofold: %
That the low market rates of 1915-19f6
are largely attributal to the great
money and deposit currency imitation
which the country was experiencing AT
that time, and CD that the rates ON
long time securities were low only
nominally and will prove to be actually
high rates camouhaged by imitation.
Let us consider these two propositions
in their order.
government in great need OF mill.
tary supplies for carrying on war
Will be able to obtain them roughly in
proportion as it is able to obtain pos
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30
hat Pure
Interest Is

The rate Of pure interest is the rate
of q. percentage of the capital sum,
which represents the market prefer
cncc for capital to- day over an assured
right to the same amount of capital
with value unlmpaircd at some future
date. One would have close approx
nation to pure interest in the case Of
bond issued by a strong government,
having a small debt, if the bond we're
sold without commission or any other
administrative charge, wee payable in
currency whose purchasing power
was absolutely stable, and were sal
able in tho market, or otherwise con-
vertiblc, at any time, without expense,
at par and accrued interest.
Certainly tho rate of pure interest
would be expected to advance during
The progress of great war. The
movements of the rate of pure interest,
like those of every other price, are the
reSultants Of the interacton Of demand
and supply; in this case, the demand
TOR capital and the supply Of capital
When the demand for capital for pres
ont day needs is large and the supply
relatively small the public is willing
to sacrifice the future for the present,
and the strong time preference for
present capital registers itself in a
high rate of interest; and vice versa,
when the demands of tie present are
fairly we'll met the future looms
larger and lower rate of time prefer
ence for present capital, as compared
with future capital, registers itself in
a lower interest rate. The days of the
greatest War in history were days when
The public in belligerent countries and
in countries Of benevolent neutrality.
rs we'll, were willing to exploit heavily
the economic future in order to provide
an abundance of present military sup
plies SO as to win the war quickly with
a minimum sacrifice of human life
All this would be expected to result
in a large premium upon present goods
over future goods, in q large and in
creasing demand for capital in the face
of declining or relatively declining
supply. This is the stuff out Of which
high rates OF pure interest are made.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30

The annual meeting Of the Bank of
Montreal, held at the head Office, took
on many of the features Of national
gathering.
The bank, by its position, had played
a principal part in directing the
country throughout the trying condi
tions of the war period, and at the
meeting Sir Vincent Meredith, the
President, and Sir Frederick Williams
Taylor, the General Manager, took up
the problems that Canada must neces-
sarly face during the post bcllum
period. The addresses at the Bank of
Montreal annual always have a special
bearing on the events of the day, but
this year perhaps more than ever
before they contained references Of the
utmost interest and benefit to every
business man in Canada.
Everywhere there prevailed a strong
belief that Canada was in an excellent
position to grapplc with the difficulties
of the period OF readjustment.
Problems of Canada.
Sir Vincent Meredith, the President
dealt particularly with the problems
Immediately ahead of the country.
The most important, Sir Vincent point
ed out, was how the country was 10
meet the interest on the Vast debt
of possibly $1,000 900 which would
exist after the war. Increased pro-
duction would raleve the country Of
a portion Of its burden, and this, will,
strict economy and growing popula
ton, would in time adjust the Difficult
ties of the country.
Taxation cannot easily be lcssencd
and may be increased, added Sir Vim
cent A levy on capital, advocated in
some quarters, must only result in the
sitting of individual incentive and
enterprise and the penalizing of in
dustry, self denial and thrift Taxing
capital to the point of unemployment
in industrial enterprise would involve
unemployment Of labor and produce
serious consequences. If placed prin-
cipally on consumption, the burden of
taxation is distributed.
The New Conditions.
With the cessation Of hostilities the
cancellation Of munitions contracts has
begun, and the adaptation of war in
dustries to peace conditions will doubt
less bring about check. with possible
disocation OF business, but these ad-
verse factors should prove transitory.
If Canada is to share in the bust
ness opportunities during the period
of reconstruction the banks must
stand ready to arrange liberal and
probably long term lines of credit pro-
viding the necessary funds from their
own resources or availing themselves
of redscount with the Dominion Gov
errment.
AS the war ends all signs point to
q great demand for capital for recon-
! structioA, refunding and replacement
purposes. and interest rates in conse-
Quence will in all probability rule high
for some time to come.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30
The Rental Money
Brought in War Years

Let US now turn to the movement Of
interest rates in the United States dur
ing the recent war, bearing in mind
the important fact that throughout the
war the gold standard was maintained
and all kinds of money and deposits
in solvent banks were maintained,
with slight qualification. at par with
gold.
Three striking facts appear. They
are: CD Aside from a sharp advance
during the early months of the val
a time when comparatively few loans
were made and comparatively few Sc
curitics sold, because the New York
Stock Exchange bond market was closed
four months Gully 60 to November
2S). and aside from an equally sharp
decline toward the end Of the year
1914, all rates ruled comparatively low
until about the end Of 1916. (2) About
the beginning of 1911, all rates began d
pronounced upward movement which
continued until the end Of the war, or
until they were practically pegged by
the operation of the New York Money!
Committee. CD Rates on call loans. on
sixty to ninety days commercial paper,
and on six months paper ruled OK
ceptionally low during 1915 and 1916,
and at levels much below the average
rate of yield on railroad bonds.
The chief reason why rates on call
loans and loans of short maturity ruled
so much lower than the rates of WELD
Oh railroad bonds, was, | believe. the
desire Of the money lending public to
keep control of its funds These we're
times of great uncertainty. both eco
nomc and military. No one knew what
big things a day might bring forth.
| The thinking public, moreover, in gen
eral expected the war to bring sub
stantial and continual advances in in
terest rates. Under such circumstances
the public naturally did not wish to tic
w its funds in long time maturities
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30

With particular reference TO the
affairs of the bank, Sir Vincent an
nounccd that the distribution TO the
shareholders would now take the form
of a straight dividend Of IL p. C. per
annum, instead of a dividend Of 10
p c. and a bonus of 2 p. c. With
view of enabling Canada 10 be close
" in touch with the affairs in France
during the period of reconstruction
the bank was also making arrange
ments for the opening OF a branch in
Paris.
"The business Of the bank has been
we'll maintained during the year In
view Of possible government financing
and the somewhat uncertain outlook
at home and abroad, we have con-
sjstently set our faces against over
expansion, which is to be deprecated
under existing conditions. While Civ
ing our customers all reasonable ac-
commodation required and taking up
many new desirable accounts, we have
maintained strong liquid position,
continuing well considered policy Of
the bank, a policy which in the past,
as now, has added materially TO the
bank at home and abroad and of Ca
madam finance generally.
Change Policy Slightly
The question of opening branches
in foreign countries to participate in
the business that may arise in connec-
ton with reconstruction requirements
abroad is one that has received consid-
cradle attention from your directors.
Following the policy Of many English
banks, we have deemed it prudent to
refrain from establishing branches at
points far afield where Canadian capt.
tai would be required in local and
possible competitive industries, pre-
ferring rather to strengthen and eX-
tend our relations with reign bank
will, thereby conserving our resources
for the assistance and encouragement
of home trade. IN this connection it
may be we'll to mention that We pro
pose presently to establish an agency
OF the bank in Paris, not for the pur-
pose of loaning Canadian funds bat TO
supply necessary banking facilities to
Canadians travelling abroad and to
further the interests of Canada gener-
ally in France
1--WE shall undoubtedly for some
years have to pay in relatively high
taxation the price of our devotion and
patriotism, but | am confident this
will be done uncomplainingly in the
belief that all present and prospective
difficulties can and will be overcome.
Sane Financial Policy
Sir Frederick Williams Taylor. the
General Manager, dealt more especially
with the growth and development Of
the business of the bank and firan-
cial conditions in the principal centres
Of the world Sir Frederick pointed
out that there never was a time when
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30
BY T.. w. Kenmcrer

Professor Of Economics and Finance
IN Princeton University
IFrom a paper read at the thirty
seventh annual meeting of the Amer-
can Economic Association.)
~ URlNG the early months of the
, Great War there was a wide
spread belief among economists
that the war would cause an carly ad-
vance in interest rates in the United
States, and that The level of interest
rates would tend upward during the
continuance Of the war. This judgment
appeared to have the support Of both
sound theory and historic precedent.
1t is a fact of elementary economies
that the market rate of interest con-
sists of three elements: CD pure in
terest, CD an item representing in
surancc against estimated risk, and CD
an item representing administrative
expenses incurred in connection with
the making and carrying out of the
loan contract A time Of great world
war is a time when one would expect
all three Of these elements in the in
tcrest rate to advance
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30

There is general feeling of ex-
pectation in investment banking.
circles that the turn of the year
viii bring broadening demand for
Investment securities of all kinds.
1t is the time of the year when
normally a heavy reinvestment de-
mand develops. 1t is not improba-
bic that the demand will be more
active than usual this year owing,
to the prospect of heavy repur-
chases by corporations and individ
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30

new issue OF 100000 State of
South Dakota rural credit Az per cent
bonds is being offered by syndicate
composed of Harris, Forbes & Co.;
lalsey, Stewart & Co., Inc, and the
Continental and Commercial Trust and
Savings Bank of Chicago The bonds
are dated January |, 1919, and run
twenty years, with the option of re-
tlrement at the end of five wears.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30
Colombia Exhibit

The natural resources, business con
ditions and life of the people Of the
Republic OF Colombia are TO be shown
in an exhibit at the Bush Terminal
Sales Building on January 4. Presi-
dent Wilson has Endorsed the exhibit.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30

Leading stocks in practically all
groups, apart from a few special
ties, arc now selling 10 points or
more under their high prices of the
year. This is measure of the reac-
ton that has set in since the signing
of the armistice. Compared with the
peak prices of 1917 current quota
tons are down 20, 80 and 40 points
or more. The following tables,
presenting the three most important
groups-rails, steels and copper
stocks-atfords a striking compari-
son of prices, indicating the extent
of the reimbursement that has taken
place to date
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30

uals who have been liqudating
bonds on q large scale throughout
the last month for the purpose Of
writing off their losses in order to
reduce taxes. Selling Of this char
actCr continued last week in the
Liberty Loan bond market, where a
re.,ord business was transacted, with
Il further decline in prices, the a S
going to new low record. All of
these issues are now selling on a
highly attractive income basis.
New issues brought out last week
included two offerings of railroad
securities. An issue of $S,00O,000
of st. Paul Union Depot five-ycar
notes was several times oversub-
scribed. while a banking syndicate
placed S1o,59s,00O Of prior lien 6
per cent tcn-year bonds.
The most important feature Of
the local money market is that there
is an ample supply of funds for all
purposes, despite the heavy gov
eminent borrowings The general
undertonc continued easy last week,
apart from a frming Of call rates,
and it is probable that were it
not for the fact that the Treasury
will make continuous demands
upon the market between now and
spring, when the fifth government
loan is floated, d much greater re-
taxation might be looked for after
the first of the year. Asst It is, funds
for commercial purposes are much
more easily obtainable, and last
week active competitive bidding by
the banks developed in the com
mercial paper market, which is now
established on a 51a per cent dis
count basis. This represents a
reduction of Il Of ! per cent from
the rate which has prevailed for
more than a year
vic lCdSOH iOI tiliS. lCHUclcN III
the commercial paper market. apart
from the better supply of funds, is
to be found in the general feeling
of hesitancy in many lines of bust
ness. This naturally has tended to
keep commercial borrowings at a
minimum. Temporarily call money
worked into a firmer position last
week, which resulted in the rate
rising to per cent, compared with
a low of 3 Y per cent the previous
week. This tendency, which was
not reflected in the time money
market, excepting that offerings
were not quite as liberal, was at
tributed to the heavy first of the year
dividend disbursements, estimated at
100000, 900, and other shifting of
funds incidental to the year end
settlement period. Announcement
of a new issue of S75O,OOO,OOO Of
certificates of indebtedness for sub
scription by the banks, offered in
anticipation OF the next govern
ment loan, was a sentimental factor
in the market.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30

Sir Vincent Meredith President Dealt With the Difficult Problems
of Increased Taxaon-Banl VIII Open Branch in Paris
France-Sr Frederick Williams Taylor, General Manager
Pointed Out That There Never Was Time When Country
Was More in Need of Sane Financial Policy
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30
Wealth Markets Commerce
Finance - Economics


Although the holidays made for
dizziness in the stock market last
week, prices continued to drift
toward lower levels. Toward the
end of the period a recovery set in,
but the early losses were by no
means wiped out and the trading
list left off with the majority of
issues showing substantial recess
sions. The declining movement was
especially pronounced in certain of
the metal groups, notably the cop
pers. The latter were subjected to
special pressure as result of the
unexpected reduction in the divi-
dend rate of one of the leading
producing companies and the low
cring of the price of the metal from
26 to 23 cents These developments
tended to unsettle sentiment and
created an unfavorable impression
as to the position and prospect Of
the copper industry. They also
served to emphasize the uncertain
conditions surrounding the iron and
steel trade and induced the selling
of steel stocks on moderate scale.
Offerings We're not large at any
time, but they were not we'll ab-
sorbed owing to the general hest
fancy to make new commitments.
The principal demand came from
traders who had sold stocks pre-
viously for the decline, although
some small purchases for invest
ment were reported. Wall Street
continued to view the railroad out
look as one OF the chief adverse
factors in the general situation.
This accounted for the pressure
against the rails and the lack of
speculative and investment interest
in that group.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-30
Market Baroneters
Stock Exchange Transactions
Stocks

Stocks al
Rail Other All
stocks. stocks. stocks.
Last ~'k ..611,3OC 2.233. 500 2.844eoo
Week Def. .454, 100 1886 2,2364oo
Year ago. 695,4oo 1,664.o 900 2,36o,3oo
January to date:
1918. .2o,56S,600 III, t46,4Oo 137,715,ooo
1917. "a GA 800 1856, 428, tCO 180,452, 400
1916. 800 1852, AGO 22S, 800, ZOO
Bonds
Week Year
Last week. before. before.
L. S. &. se6.54a, 900 s61 ,ese. 600 So. 372, GOO
RPds. 3,961.0o0 $4,000 1850 900
0th'rs. 1922 900 1885 ooc 7,035, coo
All k'ds 1906. 10000 36,772, COO %. 657, eco
January | to date:
The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1918-10-11
THE ROUND UP IN PROGRESS

The round up conducted by Irwin
brothers at the fair grounds this
week is an exceptionally good wild
west performance. 1t includes all
the skillful work of range riding,
roping and throwing animals as it
Is done in the practical round up.
1t does not include the brutal fea-
lures that were experienced in former
days and were objected to by the
public. 1t includes all manner of
fancy and trick riding by some of
the best riders that the west affords
riders of both sexes, who have
taken part in the round ups and
stampedes held in the eastern states
and have won laurels in contest with
the best riders of the world.
The names Of the riders and the
feats. they accomplish would fill a
volume and yet be strange to the
reader because lire is life and to see
these people perform gives the salts
faction that nothing else can do.
There is just one day left for people
to get to go to the round up, and
witness the feats by Arizona, the man
Of mystery; Tommy Douglas, the lit
tie fellow, who keeps the audiance
laughing; Kenneth Kennedy; Harvey
Walters in trick riding; Kid Mex,
the trick roper and Roy Kivett a
roper and rider; Dave White, rider
who leaps from a horse and lands
on a Texas steer and throws him in
an instant and holds him down as do
several of the other cow boys.
Then there is Frank McCarroll and
wife,, Kitty Cannutt, Ruth Roach,
Byran Roach, Paul Hastings and wife
Lorena Udey, Hugh Strickland, Tex,
Smith, Misses Pauline and Edith r.
win, Harry Walker, Dick Evans,
Dean Groves, William Buckee, Ed
mund Edmo, See Saw Wheeler, Jack
Gibson, Willie Tommy, Grant Hud-
son, Jim McKy, Dutch Williams,
Slim Allen, Prairie Lilly Allen, Merrill
Hunt and Archie Cooley each one a
professional at their particular work
and truly worthy of much praise
and admiration.
The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1918-10-11
CHRISTMAS FOR SOLDIERS.

Elsewhere in this issue will be
found general information and in
formation and Instructions for send
ing one small Christmas package to
each soldier overseas. Read them
carefully; understand how the monu-
mental task will be carried to COM
pletion.
You will find only one address
label is mailed to each soldier, who
inturn sends it to his nearest rela-
tive or the person of his choice. This
person carries the label to the sta
don7 designated, which for this sec
ton will be found in the office Of Mr..
Early on Bridge street. When you
hand in the label, carton or box the
required size will be given you that
you are to fill according to the sta
ton where it is all officially in
spected, the label attached and
stamps placed thereon which makes
it complete for mailing.
: The cartons are furnished by the
government and have been ordered
by telegram for Bingham County.
A distribution will be made to Shell
ley, and Aberdeen who will act in
dependently. Sub-stations may be
located in town arcoss the river, but
that is still under discussion. The
time for sending is limited to Nov.
Is.
Readers will be advised as the
work progresses
Arrangements for soldiers in home
camps will be made later.