The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1919-07-03
ESTIMATE LOWERED
Of EUROPEAN NEED
Continued from Page One)

and copper will be most benefited in
the immediate future.
Efforts on the part of the Federal
reserve board to check speculation
have in large part been successful.
There has been a noticeable shrink
age in the volume of transactions on
the New York stock exchange. 1t
also is observed that any tendency on
the part of any particular group of
stocks to soar is Immediately dis
couraged. Late trading on Eastern
exchanges has been of orderly char
acter, although prices have shown
much irregularity, and at times dis
played a tendency to weakness.
Peace symptoms indicating a re-
turn to more stable monetary condi-
lions in parts of Europe are present.
ed in the reductions of the Belgian
and Swedish bank rates, the former
from 5 per cent to 4 per cent, and the
latter from 6ha per cent to 6 per cent.
Changes in European bank rates have
been an unknown quantity virtually
since 1914.
Unbroken frmness. generally ex-
pected to persist for some time, con
tinues to characterize the none mar
ket. Occasionally IL is marked by a
passing eruption in the New York call
rate-the focus of whatever pressure
develops.
The current situation would be
more uncomfortable were it not for
the relief afforded by the redeeming
of a large volume of treasury certif-
Gates of various sorts.
Behind the more immediate and
usual requirements of the money
market, such as tax and oar pay
ments, crop financing and corporate
disbursements, there remains await
ing solution the task of credit extern
sion to Europe, now a topic of bank
ing elaboration in several centers.
In addition to the broad proposal of
a combined banking and industrial
participation to provide Europe's es-
sential needs for reconstruction. there
also are pending several definite re-
quests for loans from various parts
of Europe. notably Switzerland, Po-
land, and Tzecho-Slovakia, following
the recent Swedish borrowing.
1t is interesting to observe that
Governor Harding of the reserve
board estimates the general credit
needs of Europe at only $1,000. 900. 900
compared with the vanderlip esti-
mate of s. 5000, 000. 900. and that of
81, 900, 600. 900 by III. p. Dawson. Mr..
Harding's main premise seems to be
that such needs usually dwindle when
1t comes to actual transactions. On
the other hand. the vanderlip and
Dawson forecasts are based on first
hand observation.
The great prosperity and improved
financial condition of American indus
trial corporations at present is re-
fiected to a considerable extent in the
increased number of bonds which are
called for redemption and will be
paid off during July. The aggregate
is s7,720,0 900, of which 1862, 900 are
called in entirely.
There have never been in the his
tory OF corporations so many bonds
called or such a large and gradual
reduction of funded debt as during the
current year. The end of the war
finds a large number of corporations
abruptly supplied with more working
capital, even after making large ex-
p~enditures for improvement to meet
war business.
Some of these industries, only a
few years ago, had difficulty in meet
ing fixed charges and never expected
the ~"windfall" that has come to them.
This condition is especially crafty
ing in view of the fact that the United
States. according to competent judges,
is due for an extensive period of in
dustrial expansion.
Most of the large steel and equip
ment corporations have more work
ing capital than is needed In conduct
ing their business; hence II would
not be surprising II some Of them
would reduce their funded debts in
the future by calling ponds having
redemption and sinking fund features
1t behooves investors who are loo
ing for bargains in bonds to examine
the redemption features of industrial
issues and the financial position of
the companies issuing them, with the
view of selecting those bonds which
have premium redemption prices.
Rarely do bonds sell near the cali