The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-08

Buying of securities broadened last
week under the influence Of many
constructive developments having i'm
portant bearing upon the future OF
Investment conditions in this country.
These happenings were for the most
part highly reassuring ana related not
alone to the progress Of the war
abroad but to the extraordinary re-
organisation Of industry in the effort
to speed UP the military machine and
to safeguard American business inter-
ests from the perdls incident to an
extension Of the Governments pricc
fixing campaign. The launching last
Thursday Of 100 ships. contributing
the largest tonnage ever put upon the
waters on a single day. emphasized the
success Of the movement under way
to give this country the largest ship
building industry in the world.
Influential Factors.
The investment community was
cheered also by the announcement
that 100000 American soldiers were
IN France and that others were being
them. Action Of the Government au-
thorities in advancing the price Of
copper from 2ah cents to 20 cents a
pound also helped sentiment The
situation was further strengthened by
the ease with which the banks met
the large payments Of the opening
week Of July, which Is often q trying
period In the money market. These
engagements were financed without
disturbance, and while a good many
industrial concerns were known to be
in need Of funds the really urgent
demands did not aggregate a large
amount With this show Of strength.
therefore, It was natural for investors
to evince greater interest In the bond
market and to think about reinvest-
ing a portion Of the $500 1000, 900 semi
annual dividend fund which was partly
disbursed last week.
Financing the War.
President Wilson's Mount Vernon
address effectively put a stop to the
rumors concerning the possibilities OF
an inconclusive peace being agreed to
by the war wearied nations. The
President was never more forceful in
stating the case for the Allies, and the
address had good effect upon a se-
curity market which. although dull.
showed pronounced f1rmness. The
banks oversubscribed the initial offer
ing OF $3.50, 900, 900 OF certificates Of
Indebtedness which the Treasury put
out In anticipation Of the fourth Lib
erty Loan offering in the fall. AS soon
as this operation was completed a
second $75o.00o,o0o issue was offered,
which will be promptly subscribed for
by banking fraternity which realizes
that the war enterprise must be
financed ahead Of everything else.
Changes of Five Years.
Quick absorption by the banks Of
successive s750,oO0,0o note issues sug-
gests the extraordinary changes that
have taken place in American finance
as a result Of the war and the huge
| financing II has made necessary. In
September, 1913, year before the
European struggle began. It was con-
sidered remarkable that the country's
bank note circulation should have
| touched $765. 720,029, a level never be-
| fore reached Yet the banks think
nothing to-day OF subscribing every
fortnight for Treasury notes Of an
amount equal to the outstanding cir
| culation OF five years ago. The ma
| tons banking resources are vastly
greater than they were then and the
machinery for financing huge pay
ments is more complete. The Federal
Reserve system has made available
facilities which were never provided
in the days Of independent banks and
scattered reserves. One OF the great
est benefits resulting from the new
| order OF things has been the creation
OF a we'll organized discount market
in the United States and provision at
Washington OF a strong Government
board TO assume financial leadership
in crisis.
Federal Reserve Board.
Such protection Is OF the highest
| Importance to the investment COM
| munity in time Of war and In time
| OF peace. The strength Of the Federal
| Reserve Board must be maintained
and the board must be kept free from
politics. No Government board has
greater influence. and the people ought
not to tolerate any change in its mem
bership which is actuated by politi-
cal eXpedienCy. This board has rem
dered splendid service to the country
in distressing crisis for those famil-
lar with the difficult problems encoun-
tered four years ago will recall the