davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Must Pool for
Foreign Trade

Canadian business men recognize
that powerful industrial countries like
the United States will prove keen COM
petitors for the business that is sure to
come from Europe in immense volume.
Many prewar methods in Canada will
have to be eliminated. Instead of in
dustrial individualism, like industrie
in the Dominion must unite and pool
their bids for export trade. The group
ing of industries into classes for the
propagation of export trade is becom-
ing a realized fact. For instance, rep
resentatives of seventy-five Canadian
Woollen manufacturers met in Toronto
recently, formed an association and APP
pointed a representative to find big
business for them in Europe. He will
Identify himself with the Canadian
Trade Commission now acting in.Lon-
don. Formerly large number of lum-
Der manufacturers competed with each
other for foreign business. The pres
ent scheme is for them to cooperate.
This year Canadian lumber firms will
have, say, a billion feet of certain
standard lines for export, which the
United Kingdom requires, if it carries
out its extensive housing scheme. On
the advice of the manufacturers the
Minister Of Trade will report to the
proper government authorities in Brit
ain that he wants the United Kingdom
to purchase billion feet of lumber
from Canada at cost, plus reasonable
profit. The transaction will be clearly
defined and each Canadian firm will re-
celve its full shave of the contract.
This is an illustration of the export
business methods aimed at or being
carried out by many branches of in
dustry in this country.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Record Gain i'm Per
Capita Savings of
American People
Percentage Is Lowest in the
East, Where the Volume Is
the Greatest; South Shines

Savings Of the American people in
the past four years have been greater
than in any preceding similar period
in the country's history, according to
figures published in the latest bulletin
OF the American Institute of Banking.
1t is found that in the Eastern states.
where the volume of total savings has
been greatest, the percentage increase
is the lowest.
The Southern States" the bulletin
adds, (which have often been derided
tor the improvidence of their people.
have increased in savings more than
tour times that of the Eastern states.
or 44.9 per cent, and more than twice
as much as the New England states,
which have by far much larger per-
cen1age OF savers to population.
The middle Western states have in
creased 1913 per cent. while the West
ern states have reached the highest
Pe5rcentage OF any, or 1911 per cent
The South, the middle West and West
have saved vastly more proportionatelv
IN the last four years than during anv
other -FOUR year period. The establish
ment OF savings departments in com
merclal banks and trust companies
seems to be accountable for such re-
suit. 'ON"
"An increase in savings is best in
dlcated by reducing the sum totals to a
per capita basis. In this way we are
aple TO determine the comparative
lhrilt by savings Of the various states
ana by groups of states. The follow
ing taole SHOWS the per capita savings
III nanhs, trust companies and war
with the percentage of increase durino
such period: N''' lug
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
By H. J. Davenport
Professor Of Economics IN Cornell
UNiuersitu
HAVE already pointed out that

7 HAVE already pointed out that no
one can foretcll with anything
like confidence what is to be the
longtime trend of prices; that mainly
the decision will be with national finan-
cial policies, which are conjectural;
that the wise policy viii be to protect
prices from further fluctuations; that
falling prices are even worse in their
total results than rising prices; that if
England and France adopt the policy
OF contracting credit, with the result
of falling prices, America will in later
turn run serious dangers if it does not
follow suit; that the possession of
enormous SURPRISES of unemployed re-
serves In America is a standing tempta-
ton to further imitation on our part;
but that, after all, the first and tenn
porary movement is likely to be one
not merely of readjusted prices, but of
slightly falling general prices.
There would be no great harm in
most OF this if the fall went neither
fast nor far. Employers probably can
maintain the present level of wages
even though prices somewhat fall. The
margins Of profit are still ample.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
$lO,OOO,OOO Cities Service
Debeniures Offered

An issue of $10,000.000 Cities Service
Company. Series &C." per cent CON
vertible gold debenturcs is being
offered by a syndicate headed by Henry
J.. Doherty g. Co. and Montgomery 4.
Co. at par and interest. The debentures
are convertible on and after January /,
1921. into nine shares Of Cities Service
preferred stock and one share Of COM
mon, together with the accumulated
cash and stock dividends on one share
Of common from January /, 1919, to
the date Of conversion.
The net income of the company for
the twelve months ended November 80,
1918, wa3 sci ,dS0,535. or more than
fourteen times the requirements for
payment of interest on all dehcnturcs
outstanding, including the new issue.
At the present prices OF the common
and preferred stocks the conversion
value of the Series &C" dcbentures
would be in excess Of t0l.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Special Correspondence


TORONTO, Canada, Jan. 1.-The
year 1919 will open a new era for the
dominion of Canada. During four
years of war the country has lived in
tensely. 1t has many important
achievements to its credit. In relation
to the war the nation did only its duty,
but in performing its duty some things
were accomplished that have an impor-
tant bearing on the future. One devel-
opment that will bear fruit is that
Canada and the United States are more
closely associated. What occurs in
this country, politically or financially,
Will hereafter be matter of greater
significance in the United States.
One year ago war was the primary
issue; the word on the lips of every
Canadian to-day is readjustment. This
country cannot go back to the pre-war
basis. Canada's industrial equipment
has increased very materially since
1914. The war gave us business on
the scale of full grown nation. Elk
ports of manufactured products before
the war were about $50,oO0,oO0 a year,
whereas last year they totalled $780,
100000. This was an abnormal condi-
ton. Industrally, Canada is not yet
full grown. Our population will have
to be quadrupled, and then it would be
only onethird as large as that of the
United States. The problems this fact
involves are recognized. The primary
need of Canada is heavy influx of
good class of people. Until that need
is filled our manufactures must find
big export markets. Otherwise, our
mills, that have been turning out mer-
chandise valued at $780, 900 a
year, will, many of them, close down.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05

tent, II not at the moment at no dis
tant time in the future, of S50OOO0.-
ooo a year. We have increased our
STOCK OF gold since the beginning of
the European war by fully so per cent
AT the same time, by the Federal Re-
serve act, we have reorganized our
banking reserve in such a wav as
greatly to economic its use. making
our banking position as a whole one of
Tar greater strength and safetv Than
ever before. More than 50 1000 600 900
OF gold concentrated in the hands
of the Federal Reserve banks consti-
tutes the greatest gold reservoir the
world has ever known.
We are, therefore, in a matchless no.
sltlon to assume the function of n free
gold market, function which the world
IN the process of economic readiust-
ment and recovery will sorelv need.
lhere must somewhere be market in
which claims can be cashed in gold
with certainty that gold will be forth
coming for foreign shipment. What
ever might be said in justification of
the embargo q, gold shipments, which
the United States, in common with the
other belligcrent nations, have prac-
used as matter of admitted military
necessity, the embargo should be lifted
at the earliest practicable moment
mat Is, as soon as our international
financial relationships are such That we
are no longer under the necessity of
taking care of adverse balances of the
nations with which we have been as
soclated in the war arising out of their
trade with neutral countries.
We must deal with our great gold
stock in spirit of libcrality. We have
Tar more gold than we need to do our
money and banking work. The surplus
was obtained from other countries
largely because of their necessities
They need 1t back in order to effect III.
restoration of their finances, more mar
tEularIy to insure the resumption and
maintenance of gold payments We
should not hesitate to part with much
or 1t If we could have the assurance
that the countries receiving it would
proceed to lift their embargoes and re-
strjctions and deal in the future with
gold in the spirit of the now jntcvna-
tional reciprocity which Is expected In
De one OF the consequence Of the war.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Functions of
Gold Reserve

The contingencies against which a
banking reserve of gold was required
in pre-war times may be set down as
three:
% To maintain the parity of internal circu-
lation with gold by freely providing gold to
meet foreign DRAIN
CD The psychological function OF inspiring
confidence in the strength. stability and safety
OF countrys financial and credit system; and
go To provide store Of purchasing power
for use in times Of national emergency, such as
war
OF these functions the first is by far
the most important from banking and
economic standpoint. 1t must be
mainly by its ability to provide gold for
meeting and thereby correcting an adj
verse balance of trade that the ade-
quacy of the banking reserve carried
IN any country of centralized reserves
must be tested. 1t is, of course,
through the medium of changes in the
amount of its banking reserve-fow-
ing out and diminishing when the bal
ance is adverse, flowing in and increas-
ing when the balance is favorable-that
the general price level in gold standard
countries as kept in proper relation to
the world level of gold prices-prices
falling as an adverse balance is in proc
ess of correction through an outflow of
gold and rising as favorable balance
is In process through an inflow.
LOOKING at the matter If no rn,rao
from the point Of view of the price
level and of the adjustment of the VOL
une of a countrys credit and banking
currency to what is necessary to main
tain prices at their proper economic
level, this may be described as the most
important economic function of ma
tlon's banking reserve. The gold of the
world and the new gold as it comes
from the mines is constantly in process
OF distribution and redistribution. 1t
Is thus that the international price
level is maintained or restored in ac-
cordance with the underlying con-
ditions governing the equation Of inter-
national demand and supply Of the diff
ferent countries. AS such the gold re-
serve is an economic regulator Of the
first Importance. 1t is a method of
testing the character and volume of a,
country's credit and currency, and so
keeping it from getting out of line with
It's economic requirements, particularly
IN relation to world conditions
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Gold Standard Will Survive
Vast Flood of Paper Money
Federal Reserve Member Says Supply of Metal Is
Adequate for Reserve Purposes and Urges
Policy of Liberality With United States Stock

! Financial, credit and business relation
ships, which have been thrown into
confusion by reason Of the rise in
prices, will not be Strengthened out
until the price situation is rectified.
But the price situation will not be rec
tined until the expansion of our cur
rency and credit attributable to the
buying of war securities on credit has
been eliminated and the volume of
credit and currency has once more been
brought back to a normal economic
volume that is to say, a volume CORE
spending to the needs of industry and
trade for the production and exchange
of goods at normal values.
The only reason for doubling
whether the existing gold stock of the
leading Western countries is sufficient
to hold out the expectation that the
monetary practices associated with an
effective gold standard can soon be re-
sumed is the doubt as to what the att-
tude of the leading countries of the
commercial world will be toward con-
tinuance of the present inflated price
structure. The whole commercial
world is on an inflated basis. The
situation is worse in some countries
than in others. In some the imitation is
gold imitation, in others it is a paper
imitation, but in all situation has been
produced, either by reason of the album
dance of gold or the abundance of paper
and credit currency, that calls for much
the same sort Of general treatment I'M
less the present inflated level of prices
is to be continued by acquiescence Of
the leading countries. 1t is doubtful
whether any one country could move
very far or very rapidly without af-
fecting others in ways that would prob
ably be regarded as detrimental and in
imical.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
The Course of
Wages and Profits

Even if the profits could absorb some
degree Of the shock through falling
prices and stationary money wages dur
ing the period of industrial readjust-
ment and reabsorption of labor,
l do not think it probable that
the profits will have to do this.
The general rule that money wages
lag behind prices, both on the up grade
and the down-with falling real wages
under rising prices and rising
real wages under falling prices
is not likely to hold where the excep-
tional disturbing factor is the neces-
sity of q prompt absorption of three
and half millions of returning labor
ers and the concurrent redistribution
of horde of laborers out of some in
dustries and into some others. During
this transition period-for the imme-
diate future, that is to say-the en-
p,oyers may still be able to pre-
serve their present breadth of
margins. If prices fall more than a
few points-they are not likely to fall
sharply or long-money wages will fall
also and probably for time somewhat
the more rapidly, as the sole condition
on which an enormous extension OF
employment cap take place. Organized
labor will merely accentuate the condi
tions of unemployment so far as it
attempts resistance and in the slight
degree that it can resist successfully.
These are matters of relatively
short period. This fall in prices will
hardly be long continued and, with the
reserves of the banks large for larger
credit accommodations, can hardly be
steep.
In this transition period, then, wages
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
The Factor
OF Confidence

As regards the vague function of IN
spring public confidence, the matter
is mainly one OF psychology. A re-
serve is adequate if it is thought to
be adequate. The events OF the last
four years have thrown the matter
Of the Importance of a banking re-
serve from the psychological stand
point into q diminishing perspective
Not the least Of the remarkable fnan-
cial by-products Of the war has been
The case with which popular cxpecta-
tons, confidence and practices have
adjusted themselves to the substitu-
ton of fduciary notes for gold cur
rency That the spirit of patriotic
fervor in war times has had much to
tudc il unquestioned. The fact that,
even in countries which suspended
specie payment, there has been no pre-
MUM on gold or discount on paper
has also had much to do with breed
ing spirit Of Indifference. 1t seems
not unlikely that permanent i'm
preston has been made upon monetary
habits az a result OF the war, which
will give 10 the large reserve as a
means of inspiring confidence in the
integrity and solidty of country
financial system steadily diminish
ing Importance.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Factors in
High Prices

Not until much patient and exhaust
i've investigation has been made can it
be determined with anything like sat-
isfactory accuracy 70 what extent the
great rise of prices which has taken
place in the last four years is to be
explained by relative shortage of lead
ing materials and commodities, and to
what extent it is due to the artificial
abundance OF money. No doubt both
factors have been at work, and the high
prices which have prevailed are partly
70 be regarded as indicating scarcity
values" and partly as indicating in
aated prices. The scarcity prices will,
no doubt, correct themselves and disap-
pear as industry returns TO a normal
condition. Inflated prices, however,
present more difficult position. Their
corrective must be sought mainly in a
diminution in the volume of purchasing
power, and must come in the United
States mainly in the liquidation of
war business and war borrowings.
The expansion Of circulating bank
deposit credit in the United States dur
ing the last four years may be con-
servatively estimated at from 40 to 30
per cent. The amount Of securities is
sued by the government in the process
Of negotiating the great war loans--in
the form of bonds and certificates of
indebtedness there is good rca-
son for bclieving'have not yet been alb
sorbed by permanent investment, may
be estimated at between $1,000 900. 900
and $4,000. 600 900.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Canada Prepares FOR Great
Expansion I'm Foreign Trade
Government Will Aid in Financing Export Bust
ness While Dominion's Industrial Leaders Are
Getting Together for Drive at Worlds Markers

own resources, this would present
difiiculty. The Federal government
recognizes a newNimportant function
and proposes to lend freely in 70.
latlon to expert business. Credits ,y;u
be advanced to France and. if neoou
sary, to Britain.
Canada expects that her var
costs will ultimately be paid tbroncb
an indemnity from Germany Mo.,
"hiie' the notable success of the Vie
tory loan of 1918 has provided i'm
mediate funds, which VIII be util;zua
parity IN financing contracts placed by
Europe in this country. prov;dea
Canadians act in unity, this country
granted credit facilities, faces an ex.
port business greater than the mimi.
tlons market. The country has reason
Tor ITS confidence in the future.
Necently the arrangements of scv-
erai OF the larger Canadian banks hay.
announced their purpose to assist !,
financing export trade. They are in
position to do so on a large scale. In
1918 deposits in Canadian chartered
banks amounted to $1,000 100000 and
current loans aggregated $500. ooooOo
Now deposits are s1,7o0.o00,oo0 and
current loans only $1,000, ooO,O This
reserve loaning power was at the dis
posal of the Dominion and immortal
governments during the war. but now
1t can be utilized to propagate export
business.
A matter of vital Importance in
building up export trade is ocean
transportation. The Federal govern
ment has launched shipbuilding cam
palgn which within a year or two will
provide plenty of bottoms to carry
Canadian produce overseas. Mean
while, the pre-war transatlantic steam
ship service is being gradually re-
sumed.
Before the war Britain did not view
the process of emigration from the
BRUSH Isles with entire sympathv
Now, however the mother country
recognizes that Britishers residing
overseas are not lost to the flag. The
Little Highlander" has as never before
attained to the imperial attitude Of
mind. The British government is lend
Ing Its assistance to facilitate emigra-
) fion OF those who wish to make their
homes IN Canada or the other overseas
dominions
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Initiation Due
TO " ar Finance

considerable part Of our expanded
credit and currency structure is there
fore undoubtedly &c be accounted for
by the large volume Of war securities
being carried by or in the banks. II is
the considerable addition TO the volume
Of our currency and circulating bank
credit thus occasioncd that explains
much Of the rise of prices that we have
been experiencing.
In the United States prices are gold
prices, all Of our paper currency being
interchangeable with gold, and there
fore at q parity with gold. IN part,
gold prices have riSen because of the
abundance Of gold, our stock having
been increased by more than $i,0oO,-
100000 since 1914. But it is not the di-
rect but the indirect effect Of this gold
that has sustained the upward fight Of
pricess IT is the great volume Of cir
cuiating credit and currency based
upon IL that has put or kept prices up.
Are prices to be kept up, can they
be kept up and will they be kept up?
The fate Of gold and the gold stand
ard will depend mainly upon the an
swers give TO these questions. More
than this, the character Of the whole
post war period and the nature and
length Of the readjustments which II is
admitted must be worked out viii de-
pend upon these anHwprsu
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Dominion's Huge
" ar Expenditure

canada has spend about 1000 ,O00,-
oVo on the war, 1891, 10000 on con-
solidated fund and s195, 100000 on capi-
tai and other accounts, making a total
tor the four years. 1914 to 1918, of an
proximately $1,So0,O0O,0O0. Subtract
ing revenues during the four wears
from this. the net debt stands at about
SI'2Oo,0o0,000. By direct taxation s45.-
oo0,oOO was raised and S449 900 900
rom customs and excise. Our obligs-
tons were otherwise met by borrow
lngs at home and abroad.
Since the war started $23.O00.Ooo was
fcated in Britain, S2S5 1000 900 in the
United States and 1.350,oOo,ooo (in-
Guiding the Victory loan of 1918 at
S6o0,o00,0o0 the amount subscribed be-
ing $6s7,ooo,0O0) was foated in
Canada.
The people of the United States are
naturally interested in the question of
Canada's ability to meet interest and
principal promptly. Funded obliea-
tons assumed during the war amount
to s1,45o,ooO,COo net. The first Cana
dian flotation in the United States,
amounting to s45,ooo,oOo, was paid off,
whereas the above mentioned Aotation
IN the United Kingdom has been more
than counterbalanced by advances to
Britain, whereby the United Kingdom
now owes Canada $14O,000,00 On the
funded debt assumed by Canada during
the war the interest charges will be
Approximately $So,ooo,OOo a year. OF
this interest charge less than $4,000
ooo goes out of the country. namely, to
the United States.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Uptown Wall Street.
Bank Takes More Spacs

Although the Guaranty Trust Com
pany has been in possession of quarters
nue. and Forty-third Street for less
than year. larger premises are needed
and the trust company has been forced
to go into the neighboring building
for it. The first floor in the buildinS ~
500 Fifth Avenue. which is just south
of the GuarantysTruSt Building. has
boon leased from last Wednesday for
a period of seventeen years and four
months At ren.al OF $4,000 ycsr
at the start with an Increase to Sil.eoe
OF the growing business Importance 81
the "Uptown, Wall Street" rs ~
Forty second Street dietrict is know Fl
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Moderate Supply
A Better Regulator

AS regards this function of a regula-
tor, 1t seems obvious that it is not the
absolute level of the reserve ratio that
is significant, but the variations in it
which take place. The decline of an alb
solutely low reserve ratio will serve
just as we'll to indicate an undue
growth of banking liabilities as the de-
cline OF higher one. Indeed, there is
much warrant, especially in view of re-
cent war experiences, to justify the
opinion that reserve Of moderate
height is more sensitive Indicator,
and therefore q better regulator of
banking operations, than one of greater
heiCht.