New-York tribune. [volume], May 26, 1918, Page 14, Image 14

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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"W e a 11 K Markets an.
o m. m e r e e
m
Finance - Economies
WALL STREET OFFICE: Telephone:
Mills Building, 15 Broad St l?anover 6614
?????
To those who advocate the easiest
way in war finance, regardless of
the disaster that inevitably will re?
sult if inflation proceeds unchecked,
we earnestly recommend the read?
ing of an article presented on the
preceding page. It is written by
one of the leading bankers of the
Pacific Coast, a banker who sees
clearly the menace of the course
we are pursuing. "The whole
scheme, as it is now developing,"
says Mr. Rutter, "represents a sim?
ple plan of financing the war by
inflated money, wherein the gov?
ernment will go in the markets with
the money raised largely from the
sale of bonds, and will undertake
to buy commodities by bidding for
them on unlimited credit, against
competitors whose money power is
steadily increased with the increas?
ing money stock of the nation."
And to avert this danger, which the
government ignores, Mr. Rutter as?
serts "it is up to the bankers of
America to minimize the peril, first,
by refusing every credit that does
not contribute directly to the war;
second, by urging the Federal Re?
serve Board to raise its rediscount
rates so as to check the inflation of
currency that is now surging over
the country, and third, to use every
influence in procuring the utmost
advance in income taxes that Con?
gress and the people can be per?
suaded to adopt. If these remedies
are not applied, and applied vigor?
ously, the socialistic movement that
has already developed to an unpre?
cedented degree throughout the
world will prove almost irresistible
?fci overthrowing our present sys
?jem of government and economics
in the readjustment that will take
place at the conclusion of the war."
A few weeks ago, when cotton
was selling at the highest price
touched since civil war days, and
there was talk of fixing the price of
the staple, the South protested bit?
terly. Resolutions were passed de?
nouncing the proposal as an attempt
to impoverish the land of cotton.
A Southern Senator announced that
he would oppose such action to the
bitter end, even to insisting that, if
cotton prices were fixed, so must
the prices for all other products, re?
gardless of the necessity for* such
action. And so there was no inter?
ference with cotton. It remained
the commodity, politically immune.
But a little time and a few cents a
pound make a difference, and now
we have the absurd spectacle oi
tome Southern interests who for?
merly insisted that the government
?tust keep its hands off urging the
jcing of a minimum price?not, oi
course, at market quotations, bui
at 30 cents a pound. Presently, n<
doubt, the matter will be agitatec
in Washington, with what result n(
one can foretell, though the Soutl
usually gets what it asks for.
Naturally, the New York "gam
biers" are to blame for the slum]
in cotton prices to a point wher?
they are only 300 per cent abov<
the low level of 1914; weather, anc
crop prospects, and the shortage o:
shipping which prevents transporta
tion of cotton to Europe are unim
portant factors. They must be, fo
the Southern papers which are dis
cussing the question, ignore ther
and blame it all on a conspiracy t
strike a blow "at the mainstay o
our prosperity." Here is an exair
pie of the sort of stuff that is bein
printed in the cotton belt, froi
the Anderson, S. C, "Tribune":
It becomes each day more evident
that there is a conspiracy among
the gamblers of the New York Cot
ton Exchange to confiscate the pr?s
ent cotton crop as they did in 1915.
The Democratic County Conven
tion in Marlboro calls attention t*
it and requests that the Federal Gov
ernment stabilize prices by estab
liahing a minimum price of 80 centi
* pound. No one would be per
^mitted to offer futures of from 31
? cents down. Under the present con
^dations a few gamblers can get to
W *?**? and by fake salea of tremen
doua quantities of futures, work th.
price down to whatever they please
This would not amount to anything
if bankers who hold cotton loan
wer?- not deceived by these fictitiou
?ales. Money is the most timid thin
on the earth, and the moment the
see July quoted from the blackboar
in tho Exchange below 26 cent? the
begin to call loans made at 20 cent
and force cotton on the market.
This is nothing but highway rol
bery. Cotton goods ate selling o
the average of on? dollar a poun
fer new cotton, and cotton is wort
=86 cents now as much as three week
?ago. It is bold, open, defiant gam
bllng. Many of these men sol
May and July to the mills abov
SO cents and are now trying to bu
the remnant of this crop under ?
cents a pound. They do not grow c
?pin cotton; they are wolves preyir
upon the producer, spinner and cor
sumer. They are traitors masquei
ading as patriots.
Such charges as these are bai
less. So good an authority as Th?
dore H. Price says there has nev
bean a time in his experience?a:
Vr. Price'? experience extends ov
i
many years?when there was so lit?
tle short selling of cotton as there
is to-day. Nevertheless, propaganda
of this sort should not be allowed
to pass unchallenged, and we be?
lieve that, as ?'Commerce and Fi?
nance" suggests, the Cotton Ex?
change should take measures to
combat it.
Money and Credit
Surplus reserves of the Clearing
House banks decreased $4,235,900 to a
total of $41,963,640, according to the
?weekly statement issued yesterday.
Loans and discounts contracted $30,
015,000, the total now being $4,549,411,
000. Net demand deposits of the banks
increased $57,981,000 last week to a
total of $3,708,439,000. The govern?
ment made heavy withdrawals during
the week, its deposits with the local
banks falling from $514,178,000 to
$364,015,000.
The Federal Reserve Bank of New
York reported an aggregate of bills
discounted and bought of $581,158,253,
compared with $499,152,000 a week ago,
indicating that the member banks did
considerable rediscounting with the
central institution. Total gold reserve
of the local bank increased approxi?
mately $3,000,000.
The actual condition of member
banks shown by the Clearing House
statement yesterday follows:
Lor.ns, discounts, invest?
ments, etc.$4,549,411,?000
Cash in vaults of Federal
Reserve members. 103,424,000
Reserve in Federal Re?
serve banks.-.. 610,712,000
Cash in vaults of state
banks and trust com?
panies . 16,442,000
Reserve in depositories.. 7,517,000
?Net demand deposits.... 3,708,439,000
Net time deposits. 164,030,000
Circulation .-... 36,832,000
Aggregate reserve.... 634,671,000
Excess reserve...-. 41,963,640
"United States deposits deducted,
$364,015,000.
The changes from a week ago were:
Loans and discounts... .Dec. $30,015,000
Cash in vaults of Fed?
eral Reserve mem?
bers .t.Dec 1,366,000
Reserves in Federal Re?
serve banks.Inc. 3,797,000
Reserve in vaults of
state banks and trust
companies .Inc. 86,000
Reserve in depositories..Dec. 716,000
Net demand deposits.. .Inc. 57,981,000
Net time deposits.Dec. 6,888,000
Circulation .Inc. 120,000
Aggregate reserve.Inc. 3,167,000
Excess reserve.?ec. 4,235,900
Bank Acceptances.?Rates were un?
changed as follows yesterday:
Thirty Sixty Ninety
Spot de- days. days. days.
livery: Per cent. Per cent. Per cent.
Eligible
member
banks....4-"4@4 4A@4A 4?@4!/4
Eligible
non-mem
berbanks.4^@?v?/8 4A@4^ 4?@4i\
I neligible
bank bills.e^?^ 5?f4@4% 6'/4@4%
For delivery within thirty days:
Per cent.
Eligible member banks.AYz
Eligible non-member banks. 494
Ineligible bank bills. 6
Discount Rates.?The fou owing tabla
gives the current rates of the twelve
Federal Reserve banks on commercial
paper on all periods up to ninety days:
,-Maturlty
"""! 5
Ills Is Ss
"** <-*
. ?n
? ? B *
'. t=??S
: RS?
. ?? er _
? 2 ? a " 5 '. B
? C?< i .1 ,<
"2
Boston......... 4 4% 4%
New York.?4 4% 4%
Philadelphia.... 4 4% 4%
Cleveland.4Va 4% 4%
Richmond. 4!/4 4% 4%
Atlanta-... 4.4% 4%
Chicago...?.?.. 4 4% 6
St. Louis. 4 4*/4 ?tK
Minneapolis...? 4 4% 6
Kansas City.... 4 4% 4%
Dallas. 4 4% 6
San Francisco.. 4 4% 4%
Bank Clearings.?The day's bank clear?
ings at New York and other cities were:
Exchanges. Balances.
New York.$39,417,991 $7,223.554
Philadelphia..... 68,740,439 16,735,264
Sub-Treasury.?The banks lost to
Sub-Treasury yesterday $329,000.
Silver.?Bar silver in London was
48%d, unchanged; New York^^c, un?
changed; Mexican dollars, 77c, un?
changed.
LONDON, May 26.?Money was easy
at 2V? per cent. Discount rates were
quoted at: Short bills, 3*/4 per cent.;
three months' bills, a 9-16 per cent.
Gold premium was quoted at Lisbon
130. _
The Dollar in Foreign Exchange
Exchange on Italy went to a new low
record for the war period last week
when lire bills continued to display
pronounced weakness in the face of
strong intimations that steps have
been finally undertaken to put ma?
chinery into operation that will tend to
stabilize the Rome rate. Banks in
Italy have been heavy sellers of lire
bills in this market, and it was of?
ferings from this quarter that were
largely responsible for depressing the
rate in recent daya. It is generally
recognized, of course, that the great
fall in the value of the Italian lire is
due principally to the fact that while
Italy s exports have become almost i
negligible, imports have risen by leaps
and bounds, the combination resulting
in the rolling up of a large trade bal?
ance adverse to Italy. Bankers here
insist that the only way the exchange
problem can be met with any degree
of success is for Italy to impose dras?
tic restrictions on all imposts, thus re?
ducing her international?, trade obliga?
tions.
The neutral exchanges, Swiss and
Dutch, were somewhat easier toward
the end of the week, after displaying
pronounced stren*rth. The tendency
here was a reflection of a similar ten?
dency in the London and Paris mark?
ets. Current strength of Dutch ex?
change is said to be due to two things
?first, a curtailment in the supply of
exchange, and second, the fact that
substantial remittances have had to
be made recently in payment of divi?
dends and interest due on Dutch in
vestments in this country.
An interesting development in con?
nection with the market for Spanish
peseta exchange was the announcement
from Madrid that the Spanish Finance j
Ministry has presented a bill in the i
Parliament the effect of which is to
place Spain on a gold basis. The bill |
provides among other things that sil- !
ver shall not be legal tender in
amounts of more than 60 pesetas, ex- I
cept for payments to the government. ?
Until proper facilities have been made
available for minting the gold coin
needed foreign gold coins will pass at
I their currency value in Spain. The
Bank of Spain has increased its gold
holdings enormously since the war be?
gan.
American firms in need of exchange
on India to pay debts in that country
are now receiving allotments of rupees
from the Federal Reserve Board, which
is drawing against the large credits ob?
tained in India through the shipment
of silver to the Far East.
Closing rates yesterday, compared
with a week ago, follow:
(Quoted dollars to the ponnd.)
Week
Yesterday, ago.
Sterling demand.$4.75tV $475'/?
Sterling, sixty days_4.72 4.72
Sterling, cables.4.76A 4.76 A
Sterling, ninety days.. 4.70 4.70
(Quoted units to the dollar.)
Francs, checks.5.71'/2 5.71%
Francs, cables.5.69% 5.69%
Lire, checks.9.12 9.04i/2
Lire, cables. 9.09'/2 9.03
Swiss, checks...4.08 3.85
Swiss, cables. 4.04 3.80
(Quoted rents to the unit.)
Guilders, checks. 49 50
Guilders, cables. 49J/2 50^/2
Rubles, cables .13.25 13.25
Stockholm, kr., checks.34.50 34.50
Copenhagen, kr., ch"ks.31.50 31.25
Pesatas, checks.28.25 28.00
Below is given the current exchange
value of foreign money in dollars an?
cents, together with the Intrinsic trole!
?arity, as calculated by the United
tates Mint:
Current
exchange Intrinsic *
value. value. ?
Pounds, sterling.$4.75% $4.86%!
Francs. 0.17.4 0.19.3
Guilders.0.50 0.40.2
Rubles .0.13.25 0.51.2
Lire, checks.0.11.25 0.19.3
Crowns (Denmark).. .0.31.50 0.26.8
Crowns (Sweden)_0.34.50 0.26.8
The above rates express the co3t of
foreign money in terms of the Ameri?
can dollar. You buy an English pound
sterling at, say, $4.75%. The intrinsic
parity is $4.86% per pound. Thus you
say either that pounds are at a dis?
count or that dollars are at a premium,
which is owing to the fact that in Eng?
land the demand for dollars with which
to settle accounts in this country is
greater than the demand in this coun?
try for pounds with which to settle ac?
counts in England.
If you calculate the cost of the dol?
lar in terms of foreign money at par
value?that is, if you were buying dol?
lars with pounds, marks or francs?its
value at the close of last week, as com?
pared with a year ago, would be about
as follows:
--Cost of one dollar-*
Yesterday. Year ago.
In English money. .t.$1.02 $1.02
In French money. 1.10 1.10
In Dutch money.82 1.01
In Swiss money.77 .99
In Swedish money.80 .90
In Russian money.... 3.85 1.92
In Italian money..... 1.77 1.35
In Spanish money.71 .87
Relevant Comment
No Appeal From Aetna Decision
No appeal is expected to be taken
from the decision of the U. S. Circuit
Court of Appeals in the Aetna Ex?
plosives case in view of negotiations
now going forward, looking to a settle?
ment of the differences between the
preferred and common stockholders
over the re-organization plan proposed
by the Seligman banking interests.
It was learned yesterday that recent
conferences have been held between
the opposing factions with a view to
arriving at an agreement. An interest?
ing development in the situation is
the reported purchase of a large block
of common stock from an interest who
fought the readjustment proceedings.
Government Steel Allocated
Nearly one-half the 1,000,000 tons of
steel required for building Government
cars has already been allocated, steel
men said yesterday. This construction
work is said to call for approximately
925,000 tons of bars, plates and shapes,
23,000,000 bolts, 7,000 tons of rivets and
18,000 kegs of wire nails. The bars,
plates and shapes are being distributed
through the American Iron & Steel
Institute, but some of the accessory
supplies are purchased directly by car
builders. Of the 350,000 tons of plates
required it is estimated that one-half
the tonnage will be rolled by the Steel
Corporation.
Estimating Copper Profits
Continuation of the Government
fixed price of 23& cents a pound on
copper from June 1 to July 15, accord?
ing to estimates in the trade, means
that the average profit for that period
will be approximately 6% cents a
pound, or a full cent under what is
considered to be a normal profit. These
calculations are based on statements
that the average operating cost
throughout the entire industry ap?
proximates 17 cents a pound before
taxes and depletion. In the case of
some of the smaller producers it is
stated that costs run all the way from
21 to 27 cents a pound.
Calling In Silver Certificates -
Following tfce action of the Federal
Reserve Bank of Philadelphia the local
Federal Reserve Bank has sent out
to the member banks in the New York
district a request that all silver certi?
ficates of $5 denomination and upwards
be turned in as quickly as possible.
Lire at New Low
Exchange on Italy fell to the equiva?
lent of 9.12 lire to ?he dollar yester?
day. This was a new low record. Nor?
mally 6.18% lire equal an American
dollar. The value of the lira under
normal conditions is 19.3 cents. At
the present rate it has an exchange
value of 10.9 cents.
Demand for Farm Loan Bonds
The Federal Land Bank 5 per cent
farm loan bonds offered last week by
a group of investment houses, in con
Junction with the Federal Land banks,
met with a favorable reception on the
part of investors. The investment
group alono yesterday reported sales
of approximately $33,000,000. This
group has in its membership repre?
sentative banks and investment dealers
all over the country and is headed by
Alexander Brown & Co., of Baltimore;
Harris, Forbes & Co., Brown Brothers
* Co., Lee, Higginson & Co. and the
tsational City Company.
Federal Reserve Banks
RESOURCES
May 24. Mayl7.
Gold coin certificates In vault. $47?,460,000 $479,529,000
Gold settlemant fund (F. R. Board). 407,767,000 418'3?'??C;
Gold with foreign agencies. 52,500,000 52,500,000
Total gold held by banks. $938,727,000 $950,366,000
Gold with Federal Reserve agents. $930,931,000 *^915'5^'^
Gold redemption fund. 29,115,000 28,502,000
Total gold reserves. $1,898,023,000 $1,894,404,000
Legal tender notes, silver, etc. $58,033,000 58,308,000
Total reserves. $1,956,056,000 $1,952,712,000
Bills discounted-members. *!2i'???-?2?
$842,265,000
mus aiscounted?members. TXXX?Xr?X? -rzaRftfi000
Bills bought in open market. 278,221,000 279,886,?WU
Total bills on hand. $?52?,??O $1,122,151,000
United States government long term securities $42,067,000 $41,041,000
United States governn't short term securitios. 32,476,000 73'043,?29
All other earning assets. 1,151,000 1,492,000
Total earning assets. $1,277,214,000 $1,237,727,000
Due from Federal Reserve banks?nst. $14,033,000 1'8??,9^
Uncollected items. 365,440,000 384,391,000
Total deductions from gross deposits...? $351,407,000 $382,509,000
Five per cent redemption fund against Fed- /k_/w.
eral Reserve Bank notes. $537,000 $530,000
All other resources. 89,000 77,000
Totsl resources.^. $3,585,303,000 $3,573,555,000
LIABILITIES
Capital paid in. 1,134,000 $75,315,000
Surplus. V - 1,131,000
Government denosits ?. " " 122,350,000 48,753,000
Dre^remberCkURese-rVe-VcVou;*:::;;. ^J^KS '"ffi'liKS
Collection items . 242,488,000 282,475,000
Other deposits, including for'n gov't credits. 107,903,000 114,596,000
Total gross deposits. $1,909,025,000 $1,906,962,000
-I ial Reserve notes in actual circulation.. $1,578,621,000 1,569,445,000
i ? ucral Reserve Batik notes in circulation,
net liability. 7,764,000 7,787,000
All other liabilities. 13,924,000 12,821,000
Total liabilities.- $3,585,303,000 $3,573,855,000
Ratio of gold reserves to net deposit and Federal Reserve note liabili?
ties combined, 60.5 per cent. Week before, 61.2 per cent.
Ratio of total reserves to net deposit and Federal Reserve note liabili?
ties combined, 62.4 per cent. Week before, 63.1 per cent.
Federal Reserve Bank of New York
RESOURCES
Gold coin and gold certificates: May 24. May. 17.
Gold settlement fund. $39.583.000 $39,336,000
Gold in vaults. 351,319,097 348,266,928
Gold with foreign agencies. 18,112,500 18,112,500
Gold with Federal Reservo agent and in re?
demption fund, Federal Reserve note3_ 260,001,930 260,338,530
Total gold reserve. $669,016,527 $666,053,958
Legal tender notes, silver certificates and
subsidiary coin . 41,658,374 42,865,489
Total reserve_v. $710,674,902 $708,919,448
Bills discounted and bought:
Commercial paper. 442,175,032 368,713,833
Acceptances ...... 138,983,221 130,435,543
Totals...* $581,158,253 $499,152,376
Investments:
United States bonds and notes. 4,991,350 43,810,650
U. S. certificates of indebtedness purchased
from the banks with agreement to repur?
chase in fifteen days. 130,000 1,240,000
Totals .-_ $6,231,350 $45,050,650
427,267
Due from other F. R. banks (net)
Total resources . $1,298,064,506 $1,253,549,742
LIABILITIES
Capital. $19,754.300 $19,754,150
Member banks' deposits (net). 614,816,858 613,589,077
Non-member banks' deposits (net). 4,851,738 4,307,987
Government deposits . 12,141,477
Due to other Federal Reserve banks (net).. 37,552,370 2,074,722
Federal Reserve notes (net). $506,342,270 $507,82735
Foreign government accounts..........., 95,460,102 99,828,458
All other liabilities. 7,145,387 6,168,101
Total liabilities . $1,298,064,506 $1,253,549,742
Federal Reserve notes outstanding. 566,155,985 $565,212,585
Against which there is deposited with Federal
Reserve agent:
Gold and lawful money. 247,901,930 247,838,530
Commercial paper . 581,158,253 499,152,376
News Digest
Foreign
Paris Bourse Quiet.?PARIS, May 25.
?The Bourse was quiet to-day. Three
per cent rentes sold at 60 francs
for cash. Exchange on London was 27
francs 15% centimes. The 5 per cent
loan ;was quoted at 87 francs 80 cen?
times.
New York
Foreclosure Sale Asked For.?Appli?
cation has been made to have the prop?
erty of the Federal Dyestufl* and
Chemical Company sold under fore?
closure, and it is expected that Judge
Sandford, of the United States Dis?
trict Court of Tennessee, will sign the
decree within a day or two. If the de?
cree is signed, it is expected that the
property will be sold within four or
five weeks. A reorganization plan is
being formulated by the Krech note?
holders' committee, and this body will
probably bid in the property.
Washington
President Fixes Zinc Prices.?WASH?
INGTON, May 25.?President Wilson
to-day fixed the price of zinc for a
period until next September as fol?
lows: Grade A, 12 cents; plate, f. o. b.
plant, 14 cents; sheet, f. o. b. plant, 15
cents. The prices are subject to the
usual trade discounts and differentials
in effect on February 13 last. The price
was fixed under an agreement with the
industry by which producers will not
reduce wages. It will be the same for
the public, the Allies and the govern?
ment. The War Industries Board will
direct distribution to prevent zinc from
falling into the hands of speculators.
Producers pledged themselves to exert
every effort to keep up production to
insure an adequate supply.
New York Banker to Aid Foreign Ex?
change Division.?WASHINGTON, May
25.?D. H. C. Penny, vice-president of
the Irving National Bank, of New York
City, has been appointed assistant di?
rector of the Federal Reserve Board's
division of foreign exchange and has
severed temporarily his connection with
the bank.
Corporate Returns
Minneapolls, St. Paul & Sanlt Ste.
Marie Railway.?The company reports
total operating revenue for the year
ended December 31. 1917. of $20,726,380,
compared with. $21,576,320 for the pre?
vious year. After operating expenses
of $14,094,770, net revenue amounted to
$6,631,510, against $9,518,175 for the
year before. Taxes and uncollectible
revenues totalled $1,545,197, leaving op?
erating income of $5,086,313, to which
other income of $1,574,468 was added,
bringing the gross income to $6,660,781,
which compares with $9,140,015 for the
preceding year. Total deductions were
$3,914,352, against $3,881,420 for 1916.
Net income for the calendar year to?
talled $2,746,429.
Detroit & Mackinac Railway Com?
pany.?Statement for the calentiar year
1917 Bhows gross earnings of $1,350,
450, compared with $1,254,100 for the
preceding year. Net earnings after
taxes were $178,696, against $316,488
for the year before. Surplus after divi?
dends amounted to $97,850, compared
with $56,577 for the previous year.
Chicago & Alton Railroad Company
?Report for March discloses gross
earnings of $1,876,521 compared with
$1,672,057 for the corresponding perioc
of the year before. Net after taxes
amounted to $357,043 against $434,972
for the same month of last year. Bal
anee after interest totalled $347,883
an increase of $17,504 over the corres
ponding month of 1917. Gross earn
ings for the first quarter of 1918 wer?
$4,546,523 compared with $4,582,155
Net earnings were $149,805 agains
$1,107,448 for* the same quarter of'thi
preceding year. Deficit after charge;
amounted to $6,853 compared with i
surplus of $802,532 for the correspond
ing period of the previous year.
Alabama Power Company.?Gros
earnings for April totalled $221,901, a:
increase of $62,014 for the same mont
of 1917. Net earnings were $138,19
compared with $106,616 for the corres
ponding period of the preceding yeai
Gross earnings for the twelve month
ended April 30 last amounted to $2,336
853 against $1,692,526 for the sam
months of the year before. Net earr
ings for the period were $1,397,606.
On the Financial Page To-morrow
Francis H. Sisson
Discusses the Halt in Railway Development
Help Finance War
By Eschewing the
Non-Essentials
Julius Rosenwald Urges Na?
tion to Buy Only Things
Actually Needed
Saving Is Imperative
Merchant Says Luxuries
Should Be Put Aside to Aid
in Mobilizing Resources
WASHINGTON, May 25.?Julius Roa
enwald in a statement issued here to?
day calls upon the American people
to eschew non-esBentials until the war
ends. By buying the thing one does
not need, one prolongs the conflict and
adds to the "tremendous sacrifice of
life and property," he declares.
"The way for an individual, for a
business, for a nation to get along is
to work and save," Mr. Rosenwald
says. "Saving is a great virtue of all
countries that have grown to com?
mercial greatness in the world. If
saving is necessary in normal times,
how much more necessary is i't in a
time liko the present, when the finan?
cial demands on individuals, business
and the nation are far beyond anything
our country has ever experienced!
"Saving by every one is as imperative
for the winning of this war as Is the
mobilizing of armies; more than that,
the mobilizing' of armies is entirely
futile if this military step is not ac?
companied by the rigorous, commons
sense saving of the nation, for without
saving the marshalled hosts cannot
be equipped, cannot be fed, cannot be
carried overseas and cannot be put in?
to the fight.
Luxuries Must
Be Put Aside
"We can finance the enormous cost
of this war by spending only for the
things we need, not by spending for
the things we desire. Just so long as
we continue to spend for things we
do not need, just that long do we pro?
long the war and add to the tremen?
dous sacrifice of life and property. Not
until* all of us realize the stern fact
that all spending, no matter for what,
consumes labor and material, and that
labor and material are the essentials
of victory, will we be awake to the
fundamentals of this grave situation.
When we do thoroughly grasp this
truth and then act as our conscience
and as our patriotism prompt us, we
shall no longer spend except for those
things necessary for our health and
general well-being. And our health
and general well-being do not require
many things which through an easy
life we ,have come to consider as
necessities. Luxuries must be put
aside, actual nscessities must be con?
tinued. It would be a grave disaster
if the home-staying population by
foolish sacrifice were not kept fit for
its all-important task of supporting
our armies in the field.
"The nation is now mobilizing its In?
dustrial resources in order to put be?
hind our army a great productive ma?
chine. The output of .this machine
must be increased as the army is In?
creased, and we now are beginning to
realize how great an army we must
raise before there can be an end to
the struggle. Everything needed in
this gigantic productive machine is
the product of labor. This labor be?
fore the war, as well as the labor now
a part of our armies, was engaged in
the production of other things, things
that were needed for our existence, for
our comfort and for our development
as a great people. The industrial army
that we had before the war has been
largely depleted and will be more de?
pleted with every new call for troops,
and those who continue in the indus?
trial army must produce not only those
things necessary alike in peace and
war time, but everything required for
the war machine. And the things vital
for war must be produced with all
promptness possible.
"No matter how strenuously we speed
up our production on materials, it is
plain that there is a limit beyond
which we cannot go. A large part of
our production, now estimated at from
one-fourth to one-third of our total
industrial productive capacity, must be
given to the government for the prose?
cution of the war." This means that
only three-fourths or two-thirds of
our normal productiva capacity can now
be devoted to making things for do?
mestic use. It is plain, therefore, that
all of us must reduce our consumption
of labor and materials, for everything
we buy reduces the amount of labor
and materials available for war pur?
poses. We must confine our consump?
tion to the things absolutely needed.
The labor and materials that we in
this way release are placed at the serv?
ice of the government.
"As our army grows in numbers and
as our machinery for producing, war
goods keeps pace with the army's
? growth, the more we must reduce our
domestic consumption. The problem is
self-explanatory; labor becomes more
scarce, the need for war materials
becomes more keen.
Money Alone
Cannot Win War
"Some men in manufacturing and
trade have been fearful that this vitally
necessary reduction in the home con?
sumption of goods is going to hurt
their business. They have an idea that
the government can be financed only
by the profits of their business, but
they overlook the fundamental fact
that the need of the government is not
mere money. A war cannot be won with
money alone. The vital victory-win
ANNOUNCEMENT
ON AND AFTER JUNE J, I9?8
THE NAME OF
XLbe German Hmetican Banh
WILL BE CHANGED TO
The Continental Bank
OF NEW YORK
Member Federal Reserve System and N. Y. Clearing House Association
Capital $?,000,000. Surplus and Undivided Profits $600,000?
ning thing is the product of human
labor. And every bit of human labor
that goes into the production of non
essentials takes away that much active
force that could be used for war pur?
poses. The government must have
steel, copper, timber and chemicals for
the building of ships and the cargoes
to fill these ships for our men over- !
seas. If those of us at home spend
our money for the purchase of these
things for our own private use we are
competing with the government, de- j
pletmg the country's scanty supply,
forcing up prices and damming the
flow of war materials to Europe. Wher?
ever possible we must save material1?
and labor for the government, and all
of us must work as earnestly as we
know how to speed up the production
of things for the war.
"This means, in the last analysis, a
radical change in business in this coun- :
try, but it does no't mean less business, j
It means not only a greatly increased ;
volume of business, but business of i
the kind tha*1. is essential to the ending j
of the war?to the ending of i't in such !
a way that we may resume business as
usual at an earlier date than would be
possible if we attempted now to con?
duct business f>s usual.
"The exrerience of England should
teach us this lesson. At the outset of
the war England thought it possible
to ride to victory on the slogan of
"business as usual." It took some time j
for the absurdity of this to sink into i
the consciousness of the people. But j
now the business of England is war,
just as it must and will be the busi- ?
nesB of this country. The entire* ener?
gies of the Britisher are directed first
of all to the production of those
things necessary for the war. Supply- |
ing even necessities for the people is i
a secondary consideration. And the
result of all this activity of the efforts j
of every one to be of service is that
England was never busier, wages were
never so high, the general scale cf
living never so good. The sales cf
the large and small .stores are greater
than ever before, but the buying is
along lineB of economy that would not
have been possible before the ma3s of
people learned the real meaning of
business and war.
Mere Saving
Is No Hardship
"As we in this country economize in
consumption of "things for private
needs we shall have a larger store of
current savings that we can lend to
the government. The simple way to
lend to the government is to buy Lib?
erty bonds and war savings stamps.
Every citizen mus't take stock of his
earnings power and decide what pro?
portion of it he can turn over to the
government for the period of the war,
and then regularly invest his savings
in government securities. If he ear?
nestly wishes for victory he will do this
most cheerfully. He will not begrudge
'the loss of luxuries formerly consumed.
He will realize that after all he is mak?
ing no sacrifice. He is merely denying
himself unnecessary things. He is not |
even giving his money to his govern?
ment, but lending it at a good rate of
in'terest, and thus increasing his sav?
ings. His health no doubt will be im?
proved. His happiness will be in?
creased. His life will be more com?
plete, for it will be lived with one ob?
ject in view?to have at least some
part, however small, in winning the
war."
Gain in Railroad Earnings
Atlantic Coast Line Reports
Profitable Year
The Atlantic Coast Line Railroad is
one of the few roads in the country
that have reported an increase in op?
erating income from operations durine;
1917. This figure, according to the an?
nual report, issued yesterday, amounted
to $12,013,742, compared with $11,406,
237 the preceding year. Other Income
brought the total available before in?
terest charges up to $17,192,960. After
deductions for interest, rentals and
preferred dividends, the remaining
surplus was equivalent to $15.78 a
share on the common stock, compared
with $14.37 a share earned in 1916.
Total operating revenues last year
i were $44,063,331, an increase of $6,741,
246. Operating expenses absorbed
$29,773,995, and taxes amounted to
$2,276,694. The increase in both op?
erating expenses and taxes was $6,133,
741. Transportation costs jumped from
$11,879,430 to $15,982,771.
1-tM
THE
STEEL
STOCKS
We ha? preparad aa mtmansttn
Uble showinc the n?Utly* p?luoe
et the 18 leadlas; ateol eomaaaSm-,
Sp?cial Circular B-t*
Sent on request.
E.W. Wagner & Co.
y ember- heu> Ymrk Stock Ea<tm-mm$ I
| 33 New Street New York I
PKor.e 2505 Broai. I
135 Broadway. New York.
Market Barometers
Stock Exchange Transactions
Stocks
Rail- Other All
roads. stocks. stocks.
Yesterday ... 52,600 396,100 448,700
Day before_46,<300 1385,000 931,800
Week ago_68,500 436,400 504,900
Year ago.47,500 7.16,900 764,400
January 1 to date:
1918... 7,425,000 51,013,000 58,<*^,000
1917... 9,143,200 69,957,400 79,100.600
1916... 10,866,400 61,821,100 72,687,500
Bonds
Day Year
Yesterdav. before. before.
\ U. S. gov.$2,271,00O $4,233,000 -
! Rails .. 380,000 378,000 $465.000
Others . 218,000 963,000 713,000
All bonds 2,869,000 5,574,000 1,178,000
January 1 to date:
1918. 1917,
U. S. ?gov'nts..$358,317,000 $261jW>
Railroads _ 68,856,000 147,871.0!?
Others . 146,242,000 30436,000
All ?bonds_573,416,000 452,42.5,000
Stock and Bond Averages
Stocks
Yester- Day Year
day. before, afro.
20 Railroads. 69.95 69.25 81.00
30 Industrials. 82.70 83.13 94.87
50 Stocks.77.60 77.58 89.32
Bonds
10 Railroads. 80.48 80.55 88.01
10 Industrials...... 91.55 91.48 94.40
6 Utilities. 85.14 85.14 95.62
25 Bonds. 85_4 85.84 62.09
Elections
Howard Bruce has been elected a
director of the Federal Reserve Bank
of Richmond succeeding Mr. Gouvern?
eur, resigned.
Athur C. Needles, vice-president of
the Norfolk & Western Railway Com?
pany, has been appointed Federal
manager for the company.
A Warning
Wise people will now get what coal
they can as quickly as they can. They
will also make the necessary changea
in their homes and their plants to
burn the particular grade of fuel that
is to be allotted for their needs. Dont
be deceived into a sense of security
by present summer breezes.?Flovd
W. Parsons.
Significant Relations
Money and Prices:
Stock of money gold in the country.
Loans of all national banks.
Bills discounted and bougnt by Fed?
eral Reserve Banks...............
Federal Reserve notes in circulation.
Total gold reserve.*
?\verage price of fifty stocks.
Average price of twenty-five bonds. ?.
Food cost of living (Annalist index
number).
General commodity price level (Den's
index number).
Production:
Now
$3,042,708,319
March 4, 181S.
59,139,225,000
Last wi**ek.
$1,201,520,000
1,578,621,000
1,893,023,000
A nu M?
$3,088,904,809
Nearest period
?preTloua year.
$8,712,862,000
A year M*.
$154,964,000
454,402,000
'977,380,000
Testerd?y.
77.60
85,84
Last week.
288.030
May 1.
226.665
The day befoc?.
77.58
85.84
lie wee**** netom.
290.991
April 1.
230.313
A year at?
89l2
92.09
288.1
A year ??K
208.435
109,607
April SO.
Unfilled U? S. Steel orders, tons.8,741,882
Aprils
Pig iron (daily average), tone...
Wheat crop, bushels.
Corn crop, bushels.,
Oats crop, bushels.
Cotton crop, bales..........
Distribution:
March 31.
9,056,404
March.
103,648
1817 vtsid ??tlraated.
650.828,000
3,159,494,000
1,587,286,000
10,949.000
???-Taetmeae m decrease froni year bef(
14 roads. ,-114 road?
Flrst week Jim,? of Jan. 1 to
of May. March. Mareh?,
Gross railroad earnings. 4-10.0% +14.2% ?6.4%
? - lnoreaae ?r deorrase frcto lan W? ?
Year toda?
April 30. 1?T.
12,183,083
A year are?
111,166
Ttie ?it crce
636,318,000
2,566,927,000
1,251,837,000
11,449,930
Last weak
?? +18.3%.
April.
? 33,746,893
Bank clearing?.
General :
Active cotton spindles.
Commercial failures (Dan's) t
Number. Apm.
Liabilities . 905
(139 cities) . $46,520,004
?Gold held by Reserve agents ?gainst circulation included in *?*?*?*
fund beginning June 23, 1917. For purposes of comparison it is include?
in the 1917 figures.
Week ''?for*.
+9.5%
March.
83,789,656
March.
1,142
$17,672.331
+4J%
Aymtmwm
33,268,618
"7&
$12J&87>13