New-York tribune., 1918-01-30

that the Steel board did not vote re-
ducton in the amount Of the extra dlvl'
dend on the common, in view OF the
uncertainties that lie ahead. The fact
that the same rate was maintained was
considered significant in some quarters
of the optimism felt in the inner
circles Of big business over the out
look.
Mr.. krcch Returns From Denver
Alvin w. Krcch, president of the
Equitable Trust Company, who re-
turned yesterday from Denver, where
he. with other interests Of the Western
Pacific Railroad, had gone to attend the
Denver e. Rio Grande receivershlp
hearing, said that the Western Pacific
bondholdcrs were satisfied with the ap-
pointment of l.. l.. Brown and A. X.
Baldwin as receivers. Mr.. Brown IS the
president of the Denver road, while Mr.
Baldwin is vice e-president Of the West
crn Pacific Mr.. Krcch said the court
had approved an offer Of the Equitable
Trust Company, subject to review of
the Director General Of Railroads, to
buy at % per cent of their appraised
value 100000 worth Of the free as
sets Of the Denver & Rio Grandc. the
receivers to be given an option to buy
them beck again at the same figure any
time within one year. The proceeds
from the sale Of these securities, which
include Liberty Bonds and bonds Of the
Utah Fuel Company, will be used to
pay the interest on bonds due February
|. and will provide about $7o0.000 new
working capital. The Equtable's prop
osition to loan the road s2.0O0,OOO out
right was rejected by Judge Sanborn,
who stated such action would tend to
impair the credit Of the receivers.
Preparedness.
banker hit upon happy smilc
yesterday, when discussing the legisla-
ton proposed by Secretary McAdoo
which would authorize the formation
Of Il S500000,000 finance corporation
which could issue up to $4,000. .0O0, 900
Of its notes in financing corporate
needs Of the country during the war
able at the Federal Reserve banks. The
banker, while agreeing that the pro
gramme was perhaps rather drastic,
said that perhaps Secretary McAdoo
would not exercise all the power that
would be conferred upon him through
the corporation. "You know" said the
banker. "that when the surgeon comes
to perform an operation he brings a
whole kit Of Instruments. lie lays
them all out III plain sight ready for
use, but that docs not mean that he will
use all Of them. lie merely has them
on hard to be used if the emergency
rises Mr.. McAdoo. this banker
pointed out. will have the Instruments
on hand ready to use in an emergency"
Government First in Line
To the banker the endless chain Of
United States government operations
in tho financial markets has become the
dominant factor on which all private
transactions must wait. The govern
mcNt must be served first. Therefore.
the banks must always be prepared to
meet the demands of the government.
Hardly a week passes now but what
some big Treasury operation exercises
an important influence on the money
position. Tomorrow. for example, the
government will. according to an
nouncement. withdraw about onc-third
OF all its deposits carried with local
banks. On Saturday the Clearing
House statement showed a total Of
S243,546,O00 Of government deposits.
Withdrawal of the amount specified
viii reduce the total by Approximately
?COyUUU,UUv
Canadians Buy Foreign Securities
"Thc Monetary Times" says that the
Canadian Finance Minister last week
conferred with bankers respecting the
financial problems of the coming year
No information has been given as to
the proceedings, but it is generally
understood that the minister is still
seriously considering the prohibition of
the purchase of United States securi-
ties for investment accounts by Cana
dian individuals and corporations.
There has been considerable buying Of
certain classes of securities in the
United States for Canadian account.
among them being Anglo French bonds
and the United States Steel CORPORA
ton issues. In the opinion of "The
Monetary Times" it seems reasonably
certain that as soon as the Finance
Minister is convinced that investment
IN United States securities is resultino
IN considerable outflow of Canadian
funds he will invoke the war measures
act to put an end to trading in FOREIGN
securities.