The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1919-01-31
Business and Finances
By w. S. Cousins, Editor American Benker

New York, Jan. 25.-All active
stocks have again been under pres
sure and during the past few weeks
them in public trading. The railroad
problem" has by most people been
held responsible for the weakness of
the market and there is apparently no
limit to the declining capacity of
stocks, which heretofore held firm un-
der trying circumstances. In fact,
stocks which we're supposed to be on
the Bottom month ago, have since
then broken through their low points
and declined to still lower levels.
There is very little of comfort to
the stock market in the suggestion
that freight rates be raised Such ad-
vances would inevitably be met by
further demands for increases in
wages and the old deficit would re-
main This style of financing and
operation was tolerable during the
war, but is not adaptable to peace
basis, where the problem is one affect
ing the permanent basis of the trans
portation industry. Latest reports
from Washington strengthen the con-
viction that the government control of
the roads was less Of a success than
has been popularity supposed and
therefore the prospect of protracted
government operation is not a pleas
ing one for the country at large. A
heavy deficit in railroad finances for
1918 will naturally be accepted as a
part of the cost of the war, but the
country can hardly be expected to
reconcile itself to continual tax for
the working out of a theory with
which it is not in sympathy under
normal conditions.
More Foreign Securities.
1t is understood that the banking
syndicate, which, prior to our entrance
into the war, attended to the market
ing of foreign government bonds in
Our markets, are now preparing to Sc
cure further accommodations along
this line for the nations with which
we are allied An announcement was
made by ]. P. Morgan & Co., that it
had completed the organization of a
banking syndicate to underwrite the
conversion on February ! of all the
United Kingdom bonds maturing on
that date and not converted into the
long term bonds.
Two obvious advantages would fol-
low the resumption of foreign borrow
ing in the United States: the govern
ment would be relieved of the neces-
sity of continuing its advances to the
governments of our allies at the pres
ent rate and investors would be given
a high class security returning a yield
as high as any in the market at pres
ent. Prior to the entry Of the United
States into the world war a number
of these issues were f1oated in ouI
market, and while they declined quite
heavily during the days of the terri.
BILE Hun drive in the early part oil
last year, they have, with the exception
of the Russian bonds, regained all o.
their lost ground. and in some cases
are selling at premium. While the
Russian SIS and 6Hs are now quoted
at 50, no default in interest has taker
place in any of the issues thouol
there is no definite information as t.
how long the interest payments vii
be continued.
One Of Secretary McAdoo's las
official acts was to request of con
gress permission to continue loans Il
our allies out Of Treasury funds. ever
though the war was practically over
Congress has declined to grant thi
permission and the foreign govern
ments must either seek for accommo
dation among powerful banking syn
dicates, or be completely shut OF
from American funds This is a
obvious hardship. considering not onl
that the expenses Of the army hav
decreased verv slightly since the SIGN
ing Of the armistice. while the need 70
funds for trade development and re
adjustment have enormously IN
creased
Since the first of the year the Can
tai Issues Committee has not exc,
ciScd It's control over nrnnnsrl ncN