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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