The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1919-02-14

New York, Feb. 7.-Only limited
amount of speculative trading has beer
taking place on the Stock Exchange!
and this has been almost exclusively
professional. There has been no ap.
parent effect of the lifting of the bar
on stock exchange loans, proving that
factors other than the money supply
were to be held responsible for the
nationwide apathy toward the specu-
lative markets. Each of the import,
ant groups of stocks, railroad, indus
trial and public utility are dependent
for their future standing, upon the
working out of stupendous problems
and it is therefore quite difficult to
select a line of securities with any
promise of stability in market price
or certainty of the continuation OF
present dividends. 1t was found ne
cessary to reduce the United States
Steel common dividend, which reflects
the slowing down of the iron and
steel industry, arising out of the ad-
justment of peace conditions now in
progress.
1t is not unnatural that other of our
giant industrial concerns should be
faced with similar problems and con-
ditions. especially in view of the heavy
exactions of the government during
the next half-year. The new revenue
bill. which has caused such great
anxiety in business circles. has been
erected on a war basis and the in
comes to be produced by this measure
will cover far-reaching deficits. But
II 49,
COMING simultaneously with the offer
ing Of the largest war bond issue. is
now recooni7ed as depressing factor
which will hold down the stock market
TO rock bottom for a few months m
come The government is meanwhile
committing itself on an increa sin Q
scale to al kinds of new enternrises
and seems 1oath to attempt economy
in anv direction.
Government Financing.
Government disbursements are run
rino very heavily at the present time
and The necessity for new governm emf
financing will soon become acute.
Over three and half million dollars
was Maid out during Ianuarv while the
total for the seven months period
ending January 81 of this wear was
almost TWENTY-FIVE and half billions
Ranters and treasure officials have
been in FREQUENT conference over The
details Of tho Victory Loan and whiIt
II IS vet roo earlv TO announce the con
ditions under which the last loan is t.
he offered for public subscription. it i.
understood that there is unanimit,
OF views as to the essential points O
the new loan. Bankers have free1,
expressed the opinion that large
proDortion of the elements of attrac
tive investment must be mixed witt
patriotism in this loan in order t.
insure IFS absorption among investors
The bankers will of course. take a
heavv share of the loan as thew ar
compelled to take. but it will obviousl,
be a great handicap to business gen
orally if the funds of the commercial
banks are tied up in long-term securi
ties. The more attractive the new
bonds are made the less will they b.
apt to clog the wheels of commerce.
Perhaps never before in the histor
OF the country has there been such al
abundance of attractive offerings, bid
ding for the surplus funds of til,
American people and in a certain de
gree the new war bonds must com
pete with the more solid and conser
vatlve OF the private securities. Mucl
will depend. therefore, upon the tren,
OF things in the industrial world be
tween now and the new bond sale. 4
settlement of the government contrac
situation or the adjustment of the rail
road policy of the government woul,
probably produce a rise of values an,
would make the government issu
look more advantageous by compare
son with the yield of the other securi
ties. This is one reason why the gov
ernments own interests, as we'll a
that of the public, will be greatl,
served by endeavoring to bring abou
as soon as practicable a definite ad
justment of business conditions. Re
cent operations in many lines have in
dicated real progress toward such ad
Justment. but thus far most of
has been of negative character, in
GLIDING as it has the removal of gov
eminent restrictions, the reduction O
ocean freight rates to normal and tn,
like. There is still long way to g,
before the constructive side of re
adjustment will be far advanced.
The Liberty 81 per cent bonds ar,
closely related to the next government
loan. as they are the only issue nov
outstanding which has a conversio,
right. The law provides that they ar,
convertible into the bonds of an,
succeeding loan during the period O
the war. This would make the frs
Liberty issues convertible APPARENT,
into the forthcoming loan, except tina
there is this proviso, that the bond
cannot be converted into short-tern
notes. Hence. if the new loan is /:
short-term issue at higher rate O
interest than AZ per cent, the az,
might not be convertible. There is p;
question, however, whether the court,
might not hold that a five-year not
say, at per cent, was a bond and 4