The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1918-03-20

tanned Boo the more recent press re-.
ports OF cucWed peace lccicrs from
7 ticriin.
o. mcroi, is nNiumatic ;he' he lon
ger the duration OF tho war the great
r' its cost and the greater the add
t.uu to our huge national debt which
is ga rapidly pdiuc up. Tho money
situation already has Developed a de
gree Of strain which calls for caution
bon took exchange operations NJ tn
iue thc market b, being called up
ou tu depend almost entirely upon
money accommodation afforded boz the
form of demand loans Funds for
fixed maturitics are not available Tho
near approach of the time when
preparations viii become necessary fol
tho new liberty loan. which Will h"
issued April %. suggests thut'thcrc D.
slight probability ot any fundamental
Improvement taking place in the gem
cral money situation during the pro-
rros~ " the lopu \. iu tbs past
financial interests Of NsW York VIII
without doubt come forward patrioti-
cnllV and shoulder more than thclr
share ~ the loan. NCw York banking.
Institutions can rc depended upon
with the nid " the federal reserve
bank. to provide facilities Tor making
the Now bond offering o success Soo-
rotary McNdoo has very frankly rec
ugnlzcd the financial patriotism ot
New York. which has been displayed
10y large subscriptions q" the treasury
certificates Of Indebtedness hat arc
being issued iu anticipation ~ SUBJ
scriptious to the new loan. Hut add
mittediy. the uudcrlNin2 monetary
situation cannot bc expected tu de-
Nclop distinct ease during the pcrin
necessary for the accumulation 'fI
funds ~o urgently required Dos uur g''-
eminent Thus market operations
based too largely upon borrowed uon-
oy should Doe avoided This Is % fya-
turc which does not lppl, $50 strongly
L. Investments where full purchase
funds are available.
From the general investment stand
point there apcars no reason ''
change We've recently expressed BOO
those adticcs. ON the oue hand must
bee recognized the competition for Oh"
savings OF investors which Will ace
company the ufferiuI next month 81
th, new war bond issue. lndoultcd.
the utmost pressure VIII Dee oNortcd 20
make the new otfcriuu 900 outstanding
-uc'c~s. Tho bonds Themselves VIA h'
attractive u wild u addition. have
behind them the spur Of patriotism 4"
make effective demands upun ia"
f]lultius supply Of funds available for
Investment I'm addition is tu De- cN-
pcct,d come degree uf liquidation nav
ing .ur II- purpose the release ut
fund. already occupying fixed chan
u,,s. Eut ou the other hnud c"nd'-
ton. have recently arisen az. "a result
OF Oh, fersightcduc-- 81 our utilrlIl
at Washington which clear uU a COVE
uurru,, which without such action
hardly could have failed 'u have rul-
minated iu enforced liquidation of -'-
cuyitics 100 sufficient NoIr'uc tu pr
ducr most serious RESULT Railroad
returns which have recently hFr"iu"
uslllnbl, for tho month uf Jiuunrt
IN" first month OF governmental CONE
troll OF cot transportation line con
No, rather convincing SUGGESTIONS ul
what .n such circumstance uu-t have
been feed 300 the case Of railroad s,-
cur,tirs Railroad traffic, u B. true
has been 81 q volume Tar m excess
OF the railroads capacity. But in-
croascs ir the cost of labor Of equip
mcut. of everything entering int the
IltAlNAN lNIiAhNAfN HNAN' H''N ~
and such large deficits have been cree
otcd in railroad revenues ls to -ori-
uu-Iy threaten dividends ANA boo not 70
few cases interest payment. as well
There does not appear us set lu ,dc.
lu1ic appreciation Of what railroad
control 10y tho government iU fac
means TO holders of railroad securities.
1, would indeed be- difficult 90 over
stat, it, importance. Instead ot be-
coming thoroughly discouraged by
10 pending defaults. holders are today
concerned chiefly with the condition
financial and physical In which the
government vii release their property
The administrations railroad control
bill has duly passcd hotn houses ol
congress without amendments go fan
as IT'S main purposes are concerned
An a.. systems Il the country are
now for an practical purposes cou-
soldatcd. Earning OF individual -ts-
tcms are not Important 60 the stock-
holders II net revenues lall below
the average for the three years immr-
dUt'ciy preceding our formal utfaucc hs
a wan participant the trcIsur WiI|
make up the deficiency. H. "u ih"
other hand. the thrcc-year average b.
exceeded. then any surplus must -"
to tho treasury This 81 quite ftIr
sine, the buFiucss formerly controlled
bv the individual lines has h'o"uI'
subject tu arbitrary routing hy repro
seutltiNc- Of the director general
but The plans OF the government cone
template placing tho railroads ui ih'
country ON such % plane that thog NIl'
Doc all, io haudl, 'ra ffi' 'u r war
tuI. Iusi- The treasury Is iu lend Ifs