Thetillinuatztt

Bank & Quotation SectionRailway Earnings Section

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VOL. 95 SATURDAY, AUGUST 17 1912 2460

i PUBLISHED WEEKLY,

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ixt Canticle.

Published every Saturday morning by WILLIAM B. DANA COMPANY,Jacob Seibert Jr., President and Treas.; George S. Dana and Arnold G. Dana,Vice-Presidents; Arnold G. Dana, Sec. Addresses of all, Office of the Company.

CLEARING-HOUSE RETURNS.The following table, made up by telegraph, &a., indicates that the

total bank clearings of all clearing houses of the United States for weekending Aug. 17 have been $3,050,458,887, against $2,865,988,067 lastweek and $2,888,975,633 the corresponding week last year.

Clearings-Relurns by Telegraph.Week ending Aug. 17. 1912. 1911.

PerCent.

New York $1,450,998,782 $1,427,553,067 +1.6Boston

Philadelphia123,933,308,113,923,733

127,122,516109,158,438

-2.5+4.4

Baltimore 31,151,920 24,295,102 +28.2Chicago .238,622,782 220,400,749 +8.2St. Louis 67,754,465 58,068,190 +16.7New Orleans 15,916,176 13,319,083 +19.5

Seven cities, 5 days $2,042,301,146 $1,980,008,045 +2.1Other cities, 5 days 500,046,234 451,746,217 +10.7

Total all cities, 5 days $2,542,347,400 $2,431,754,262 +4.6All cities, I day 508,111,487 457,221,371 4-11.1

.11 .1,1.. f,,,..,../, 50 ncn AgQ QQ7 C9 AAA 117c figg 4. is C

The full details for the week covered by the above will be given nextSaturday. We cannot furnish them to-day, clearings being made up by theclearing houses at noon on Saturday, and hence in the above the last day ofthe week has to be in all Oases estimated, as we go to press Friday night.We present below detailed figures for the week ending with Saturday

noon, Aug. 10, for four years.

Clearings at

New York Philadelphia Pittsburgh Baltimore Buffalo Albany Washington _Rochester Scranton Syracuse Reading Wilmington Wakes-BarreWheeling Trenton York Erie Lancaster Greeasbdrg Binghamton _ _ _Altoona Chester

Total Middle__

Boston Providence Hartford New Haven Portland Springfield Worcester Fall River New Bedford _ _ _Lowell Holyoke Bangor

Tani

Week ending August 10.

1912. 1011.Inc. orDec. 1910. 1909.

$ ..

$ % $ $1,576,877,801 1,769,112,345 -10.3 1,410,919,061 1,971,080,692139,955,482 132,203,051 +5.0 125,190,313 121,515,63550,466,139 43,321,373 +16.5 43,079,668 45,106,85833,836,033 31,328,916 +8.0 27,893,212 26,341,59612,161,313 9,605,977 +20.5 8,898,979 9,319,1366,100,000 5,676,110 +7.5 5,051,820 5,043,3936,773,774 6,614,601 +2.4 0,558,190 5,613,4204,172,168 3,733,326 +1.8 3,293,929 3,428,3802,760,000 2,285,795 +20.3 2,338,601 2,260,2462,528,040 2,162,493 +16.9 2,162,022 1,943,8401,512,239 1,321,425 +14.5 1,456,863 1,457,7471 ,752 ,670 1,252,783 +40.0 1.,571,686 1,378,7671,564,264 1,280,331 +22,2, 1,278,686 1,204,3881,760,396 1,565,073 +12.5 1,642,794 1,360,6441,531,874 1,396,954 +9.7 1,264,372 1,344,232896,647 811,081 +10.5 805,225 779,127976,996 858,556 +13.7 731,747 689,167

1,100,000 852,993 +29.0 955,097502,272 525,000 .--47 475,464 453,580640,800 470,900 +36.1 491,900 377,700490,907 451,802 +8.6 444,866 431,407547,993 390,227 +40.4 613,770 418,410

1,848,887,808 2,017,221,112 -8.3 1,657,019,264 2,201,538,949

144,791,298 142,170,729 +1.8 130,124,730 149,210,0306,718,900 6,982,000 3.8 6,733,800 6,529,9004,003,511 3,635,519 +10.1 3,683,849 3,258,6072,846,544 2,769,875 +2.4 2,254,390 2,284,9682,149,935 2,007,603 +7.1 1,992,784 1,708,0521,006,107 1,907,727 -0.1 1,775,742 1,900,0002,319,910 2,510,370 -7.6 2,131,344 1,704,5171,099,759 868,531 +26.6 1,079,38:3 853,608798,615 865,336 -7.7 893,082 951,255552,548 552,405 +0.03 530,044 482,810592,223 527,682 +12.2 402,402 502,080450.000 500,000 -10.0

'no oon ^ Kn 111: 017 7--. , 1 Q 151 RAI Kral 1110 qfak 5297

Ifole.-Por Canadian clearings see "Commercial and MisGellaneous News."

NO.

Clearings atWeek ending August 10.

1912. 1911.

Chicago Cincimpti Cleveland Detroit Milwaukee Indianapolis _ _ _ _Columbus Toledo Peoria Grand Rapids_ _ _Evansville Dayton Kalamazoo Springfield, 111 Fort Wayne_ _ _ _Akron Youngstown _Decatur Lexington Rockford Bloomington... _Quincy

. Springfield, Ohio.Canton South Bend Jackson Mansfield Owensboro Lima Lansing Danville

'Jacksonville, Ill_Ann Arbor 'Adrian

Tot. Mid. West

San Francisco_ _ _Loa Angeles Seattle Portland Spokane Salt Lake City Tacoma Oakland Sacramento San Diego Pasadena Stockton Fresno San Jose North Yakima Reno

Total Pacific_ _Kansas City_ Minneapolis Omaha St. Paul Denver St. Josenh Des Moines Sioux City Wichita Duluth Lincoln Topeka Davenport Cedar Raglds Waterloo Fargo Helena Pueblo Colorado Springs.Fremont Aberdeen Hastings Billings Tot. oth.West.

St. Louis New Orleans_ __ _LouisvUle Houston Galveston Richmond Fort, Worth Memphis Atlanta Nashville Savannah Notfolk Birmingham - - - -Chattanooga Jacksonville _Knoxville Oklahoma Augusta Mobile Little Rock Charleston Mason Austin Vicksburg Wilmington, N. CJackson Tulsa Muskogee Total SouthernTotal all OlitsfrIe N. V .

280,703,84627,738,70019,665,60927,500,00012.266,4909,104,4255,838,5004,374,2813,333,3503,328,9052,034,8942,180,114713,024

1,077,2071,052,9811,562,0001,306,114503,619842,433732,169567,621713,876554,337

1,229,0531,424,073766,352383,317415,827415,226325,000405,147289,714225.00030,000

413,603,204

48,223,77519,431,43311,796,84110,342,8103,796,9405,536,7074,071,5583,428,7231,641,4822,626,091901,291886,699839,162703,767330,774295.290

115,032,84348,720,16118,000,00015,799.6079,217,1659,386.5926,440,5764,426,5762,875,5893,760,5242,526,9431,788,9481,845,8671,477,5181,255,2931,382,487411,128997,280737,267

1,178.157391,921327,531245.372275.000

133,467,510

67,771,88716,829,29612,095,94214,783,3108,250,0008,700,0005,507,7745,780,18510,136.4875,550,0004,037,2093,324,8732,652,7442,538,6373,000,0002,000,0031,353,1921,282,1751,156,6301,885,4431,327,7862,677,4111,830,612269,895425,000322,329701,067577.459

186 767 349?.865.9s8 o.1.289.110.266

238,039,64821,088,45018,210,12125,675,85314,394,4449,115,8795,104,1004,153,0292,905,0032,566,4132,199,7242,156,223656,735

1,105,8541,088,0591,084,0001,343,943469,466750,947692,761590,593668,734533,407983,657520,621445,000351,599407,422328,221309,000413,048269,009150,61733,682

358,804,812

44,229,48718,145,49710,059,33810,388,8254,168,6116,180,4793,866,4533,220,2301,546,3811,500,000796,095854,662724,396600,000405,577294,140

106,980,17142,517,37916,942,00413,98.5,9569,269,4778,369.6915,793,9293,454,1822,270,1763,225,9872,335,4351,489,1681,568,1651,272,3631,175,2451,051,054806,379885,3E8551,312736,357385,910313,762204,922112.539

118,716,970

63,524,87511,712,12912,040,73412,913,0005,886,5007,214,6624,249,1824,080,0488,668,5854,244,1723,348,2972,686,6972,045,9831,709,9732,650,9651,604,2361,580,4761,292,3491,111,7981,549,7601,050,0642,355,1112,063,079280,080448,904348,000610,897550,000

167 5420.55r

1.165.729.05,

Inc. orDec. 1910. 1909.

-17.9+31.7+8.0+6.7

-14.8

+12.4+5.3+14.7+29.7-7.5+1.1+8.7-2.5-3.3+44.1-2.8+7.3+12.2+5.7-3.9+6.7+3.9+24.9+173.5+74.4+9.1+2.1+26.5+5.2-1.9+7.7+49.6-10.9+15.3

+9.0+7.1+17.3 -0.4-4.8-10.4+5.3+6.5+6.1+75.1+13.2+3.7+15.9+17.3-18.5+0.4+7.5+14.6+6.2+13.0-0.6+12.2+11.2+28.1+26.7+16.6+8.2+20.1+17.7+16.1+6.8+31.5-49.0+12.7+33.7+60.0+1.6+4.4+19.7+144.4+12.4

+6.711-5.0

+0.5+20.1+40.2+20.6+29.6+23.5+16.9+30.8+20.6+23.8'4-24:8+48.5+13.2+24.7-14.4

233,490,19921,347,90019,642.93723.379,17212,787,6089,471,9415,144,6004,089,1062,945,7262,762,7532,337,6662,136,325690,481

1,200,346854,460818,000915,865483,077656,424765,163533,825589,407536,385845,000556,737425,000336,730474,937 339,463300,000 374,038331,907139,65743,620

351,446,455

44,054,11613,719,11311,639,5029,804,5284,354,7785,017,9665,829,1813,105,1761,323,7011,200,000639,723827,414626,702679,403387,956307,496

+4.0+21.7+26.4+13.7-11.3-3.6-5.3-7.4+15.0 4.5

1 1_

-4-106

103,516,75549,356,44917,028,77614,179,5549,131,5718,701.3165,909,2323,532,2482,345,2273,451,3722,553,2261,381,2691,454,5361,178,730974,357

1,083,198 763,149835,963567,955763,826346,973384,850190,000 111.533

248,815,35324,605,450 ;17,481,816

' 21,475,78812,778,827 ;8,438,0645,567,4003,996,3442,575,2712,455,220 ..:2,032,285 1,854,815 !641,674 i

1,097,687894,291 955,000866,273 r485,887 7587,583654,853 :457,817501,376. .546,008 675,42** 486,148 374,514360,885 :

310,046

419,303 ;314,462 ;139,928 ;31,154, '

362,875,94 ;

36,412,69i13,344,74512,749,6747,900,0004,081,1046,629,7385,366.3941,838,6111,164,172989,000500,000633,548510,542535,392410,993-235,000

126,225,310

62,823,94314,665,80012,636,43111,135,0385,298,5006,113,039

4,454,8244,691,1938,060,114

3,946,7063,781,9892,415,631

2,222.6601,873,5212,294,7751,481,1382,519,4361,212,1531,288,6431,588,1181,072,040

' 951,504,'. 967,954

216,389395,631350,000

93,301.00446,951.554 '17,018,01912,828,0478,551,2888,243,0876,024,7853,126,017 ;2,288,9082,897,9072,186,3731,572,827 .1,275,631983,023 t

1,020,238 4

701,608 71837,054 552,227775,721 .1336,118

198,910 i118,369,342

61,955,38115,142,671 i10,672,779 I.11,808,752 '4,766,5006,462,928 5,173,615 ;4..3,939,636 005,874,032 13,446,4182,835,5002.427,0071,763,190 ,01,246,8751,645,481 1,231,553' 11,550,000 .31,207,272 41,253,7021,5211,287 :912,839 f800,000532,162194,535317,358312,000

158.458.971' 148.905.473.?l'. l''

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380 THE CHRONICLE [VOL. LXXXX17.

OUR RAILWAY. EARNINGS ISSUE.We send to our subscribers to-day the August num-

ber of our "Railway Earnings" Section. In this pub-lication we give the figures of earnings and expenses forthe latest month of every operating steam . railroad inthe United States required to file monthly returns withthe Inter-State Commerce Commission at Washington.

This Earnings Supplement also contains the com-panies' own statements where these differ from theCommerce returns or give fixed charges in addition toearnings, or where they have a fiscal year differentfrom the June 30 year, as is the case with the New YorkCentral Lines, the Pennsylvania RR., and others.

THE FINANCIAL SITUATION.The most important problem confronting the eco-

nomic and the political world to-day is the high cost ofliving. It is well to recognize this fact, because it en-ters into the daily lives of all of the people of the coun-try, and is going to determine the coming Presidentialelection. To the humbler classes of the populationthere is real hardship in the way the necessaries of lifehave been leaping up in recent years, even up to thepresent time, when the price of beef and of cattle issaid to have reached the highest figures prevailing sincethe Civil War, when the country was on the basis of in-flated paper values. The middle classes of the popula-tion feel the burden hardly less severely than those inthe lower walks. The spirit of discontent, to whichex-President Roosevelt is catering, rests almost en-tirely upon this one circumstance, that food valuesh we risen so tremendously in value.

Let any one engage the wage-earner in conversatioziand he will find that the complaint is the same inPortland, Me., as in Portland, Ore., in New Orleansas in San Francisco, that the cost of buying victualsfor the family has risen to a point where it is an inter-minable struggle to maintain a bare existence. Thesentiment against combinations and against largecapitalists, where it exists at all, arises out of the samestate of things. It is based on the idea that thesecombinations and these capitalists are responsible forthe high prices prevailing. It can be readily ascer-tained that the ordinary workman entertains noenmity against wealth per se. He is indifferent toboth accumulations of wealth and manifestations ofwealth. But he has got it into his head that somehowthe vast aggregations of capital represent money filchedfrom the pockets of the masses through excessivecharges for food and shelter and clothing. Thepoliticians are doing everything to foster this beliefand denounce trusts and combinations as the sourceof the woes of the consuming population. They dothis, since it is an easy way to promote their ownpolitical advantage, and the cry of "privileged classes"and "special interests" is mingled with denunciationof trusts and combinations as pernicious evils.

It is high time that the Masses were enlightened onthis point. They should be instructed as to the realeause of the .advance in the cost of living. If theelection is not to go to Mr. Roosevelt by reason of hisfeigned solicitude for the working classes, great effortwill have to be made to disabuse the minds of theconsuming population as to the responsibility of thosecontrolling large industrial enterprises for the rise in'values. Learned writers are adding to the confusionof thought by seeking an explanation in certain specialphenomena, such as the increased production of gold.

But why should any one look to extraneous circum-stances to account for the existing situation when anexplanation is to be found at our very doors. Statis-tics are now being made available by the U. S. Censusthat leave no doubt as to the real reason for the rise inprices. And strange as it may seem, trusts and tradecombinations do not figure in it at all. At the bottomit is the remarkable state of things that has developedon the farms in this country that must be held chieflyaccOuntable for the added burdens that consumers arecalled upon to endure. In an article in our issue ofJune 1 we adduced Census data to show that in theten years from 1900 to 1910 the value of farm propertyhad more than doubled, the aggregate rising from $20,-439,901,164 on June 1 1900 to $40,991,449,090 onApril 15 1910. This would furnish occasion for grati-fication except that it was found that the farmer haddone absolutely nothing to bring about this increase of20M billion dollars in the value of his property ina single decade. He has not increased his productionand has brought very little new land under cultiva-tion. According to the Census the acreage de-voted to the leading cereals in the ten-year intervalincreased only 332%, while aggregate productionof these cereals was only a mere trifle (1.7%) largerin 1909 than it had been in 1899. In the meantimethe population of the United States was enlarged bynearly 16,000,000 (15,977,691), or 21%. Hence, withpractically no increase in quantity, the value of thecrops has risen almost 80% (79.8%), having increasedfrom $1,482,603,049 in 1899 to $2,665,539,714. Inother words, the farmer has been getting rich fromthe great advance in prices alone.This week some further Census data have come to

hand ,and these eniphasize and confirm what we have pre-viously said with reference to the farmer having failedto do his part in providing for the expansion of popu-lation in the United States. The previous Census fig-ures, so far as they dealt with the quantity and valueof the annual production, had reference merely to cer-tain selected crops. The figures now given out dealwith the entire crop production of the farm. The totalvalue of the crops of Continental United States in1909 was, it appears, in round numbers, $5,487,000,-000, . as compared with only $2,999,000,000 in 1899,the increase thus being $2,488,000,000, or 83%. Hencethe farmer is getting an annual addition of, roughly,23 billion dollars, and as there are no trusts or com-binations in the farming business, these latter cannotbe charged with having brought about this tremendousexpansion. The increase, it should be understood,does not represent anything that has been or is beingtaken from the agricultural classes, but something thatthese classes have been gettingand getting, too, atthe expense of the rest of the community. For, as tothese total crops, the same situation is found to existas in the ease of the selected crops already referred to.That is to say, there is practically no increase in pro-duction for the ten years, and the augmented value ofthe product is to be ascribed almost entirely to thehigher prices that the farmer has been able to charge,and the rest of the community (save so much as he con-sumes himself). has been obliged to pay.

This latest Census bulletin (or, rather, outline of thesame, which is all that has yet been given out) containsan exceedingly instructive and useful analysis whichthrows a flood of light on the present high cost of living.The first question that comes up is as to the increasein the area devoted to the crops. In the case of somecrops it is impossible to secure figures showing acreage.

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AUG. 17 1912.] THE CHRONICLE 381

Hence, the Census statistician is obliged, to confinehimself in the matter of area to the crops for Whichreports of acreage were, secured. , The, value of suchcrops in 1909 was $4,953,000,000, or nearly nine-tenthsof the value of all crops. The acreage of the samecrops was in 1909 311,293,000, against 283,218,000 in1899, an addition of less than 10%. With the,value in1909 $4,953,000,000, the corresponding value in 1899was only $2,721,000,000. In brief,, then, with anaddition to area during the ten years of only 9.9%the addition to values has been no less than 83.3%.The Census bulletin distinctly states that a large

part of the extraordinary increase in the :total valueOf farm crops between 1899 and 1909 is. .attributableto higher prices. For all cereals taken :together; theproduction increased only 1.7%, while the value in-creased 79.8%; for hay and forage the production in-creased 23% and the value 70.2%. 'How these' highervalues have operated to promote the prosperity Of theagricultural classes will be understood When we saythat in 1909 the value of the crops averaged $863 perfarm, while the average value of crops per farm for1899 was only $523. In other words, the cropsaveraged $340 more per farm in 1909 than in 1899, theaddition being, roughly, 70%.But the Census statistics do not rest here. Com-

putations are made to show what would have been thevalue of the crops in 1909 had the agricultural classesreceived no more per unit in that year than in 1899.Had the prices of 1899 prevailed, the value of the cropsin 1909 would have been only $2,962,358,000, againstthe $4,934,490,000 actually reported and the compari-son would have been with $2,691,979,000 in 1899,giving an increase of but $270,379,000, or only about10%. The difference between $2,962,358,000 and$4,934,490,000, or $1,972,132,000, represents, we aretold, the amount added to the value of these crops in1909 by reason of increase in prices, the average per-centage of the increase in prices being 66.6%. Thisaddition of $1,972,132,000 by reason of higher pricesrepresents the extent to which the farming communityhas benefited at the expense of the rest of the coun-try and in view of this palpable evidence gOing toshow what has been at work in this country tendingto increase the cost of living, it is not necessary to referto the operation of so-called trusts or to" consider moreinsidious influences like the increased production ofgold.As we have already seen, there has been an addi-

tion to population during the ten years of 21%, withonly a trifling increase iirthe quantity produced, andaccordingly the farmer has been able to fix priced tosuit himself. If the greater aggregate value of the1909 crops represented a greatly increased product,and was the result of more efficient methods of farm-ing, Or of large additions to area, the farther Might beregarded as having come legitimately by. his en-hanced profits. As it is, he has had to d9 nothing butsit still, take things contentedly, rake in the money,and seek to divert attention from himself by crying"trusts," thereby deluding the consuming Masses intothinking that these latter were the 'cause of all thetrouble.Under these circumstances are we in error in assert-

ing that the farmer is at the bottom of ,the great in-crease in the cost of living in this country? We haveseen that the enhanced prices of 1909 meant an addi-tion to the farmers' receipts of nearly $2,000,000,000.

We do not say that this has been all clean profit tohim, for to the extent that he has not done all thework on the farm himself, but has had to rely in parton hired labor, the higher price of such labor has been.a partial offset. Making due allowance for this, thefigures given portray accurately the basis of the won-'derful prosperity the farmer has been enjoying andexplain how he has been able to buy automobiles on,an extensive scale and indulge in other luxuries. Yetthis same farmer has been loud in his denunciation ofthe railroads and of trade combinations. It is easyto see the reason for this attitude. As such tremen-dous amounts of money have been coming to him'without effort, he imagines that railroads and in-dustrial combinations in like manner are failing to'give full consideration for what they are earning.Although he has been receiving , much, he imagineshe should receive more.

Obviously, if the farmer is in the main responsiblefor the great increase in living expenses, it is with himthat the remedy must be applied. The chief indict-.ment against him is that he has, not increased hisproduct per acrehas not enlarged his output andthereby lowered the cost per unit. That is what, themuch-abused "trusts" would have done in similarcircumstances. They would have applied scientificmethods and have increased the fertility of the soil.The methods of the farmer, on the other hand, havebeen wasteful, extravagant and singularly inefficient.He has not bestirred himself because there was nooccasion for so doing. Higher prices came to himwithout effort with the increase in population, and thetariff protected him against importations from theoutside. There is a duty of 25c. a bushel on foreignwheat, on foreign potatoes, and equally high tariffimposts on meats, on fruits, and on practically every-thing else that the farmer raises. Yet this samefarmer, enjoying such exceptional profits as the result,mainly, of the policy of protection, has been acting thepart of the hog and demanding cuts in duties on East-ern manufactured goods because these are the thingshe consumes, and therefore he wants tobuy as cheaplyas possible. The plight of the wage-earners in theEastern manufacturing industries would, indeed, bepitiable if tariff duties on manufactures were removedand the existing high duties on food products allowedto remain. Nevertheless, the farmer immediatelyrebels when it is proposed to cut or abolish the dutieson agricultural products. That touches him in aweak spbt. The strength displayed by Mr. Rooseveltat the Presidential primaries in the spring was due largely, there is reason to believe, to the fact thatPresident Taft, through the reciprocity arrangementwith Canada (which failed by reason of the oppositionof the Canadian voters) proposed to admit free of dutyfrom Canada into the United States many agriculturalproducts which, under existing la% are subject toheavy duties.The two Houses of Congress are now wrangling over

wool duties, steel. duties, cotton duties and the like.What they ought to do, if they are sincere in their pro-fessions and want to lower the cost of living, is to takethe duties off foodstuffscereals, meats, cattle, fruit,and the like, all of which are now heavily taxed. Openthe United States to the markets of the whole world.We know it is claimed that the farmer is not now andnever has been receiving any benefits from the pro-tective tariff duty. When the population was smallthe benefits may have been problematical, but withthe increase in the number of inhabitants the situation..,

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382 THE CHRONICLE [VoL. Lxxxxv.has certainly changed.. We are told that prices arefixed in Liverpool and other foreign maikets, and thatit is the total supply for the whole world in any givencommodity in relation to the consumptive wants ofthe whole world that fixes prices. To an extent thatis true. And yet it is idle to suppose that with Canadahaving 75,000,000 bushels of wheat annually forexport, which is now shipped 3,000 miles across theocean to Europe, prices would not be lowered if thissame wheat could enter the American market--could pass, for instance, from Winnipeg to Minneapolisfree of duty instead of being obliged to pay a taxof 25c. a bushel as at present. As to meats, the bene-fits might not be so immediate but would certainlycome in time. Assured of free entry to Americanmarkets, capital would quickly become available forengaging in cattle-raising on an extensive scale inSouth American countries. In regard to fruits, vegeta-bles and the like, a nation of 90 million people shouldnot be left at the mercy of a part of its own popula-tion. In the end the removal of the duties on agri-cultural products, we are sure, would be beneficialto the farmer himself. He would be forced to practicesoil cultivation and improve his methods, with theresult of increasing his productions; and with a largerproduct he would be able to net the same return asno,d, though charging the cohsumer much less.At all events, now that there is statistiCal data going

to show what accounts, in the main, for the high costof living, it will be wise to instruct the masses on thispoint. One would have expected enlightened treat-ment of the subject at the hands of such an accom-plished student of affairs as Gov. Woodrow Wilson;but in a speech to the Jersey farmers on Thursday heindicated his notion of the requirements of the situa-tion by saying: "While you farmers were feeding theworld, Congress was feeding the trusts." Utteranceslike this fill one with a feeling of despair. They arenot likely, however, to possess much availability in thefuture, now that such telling statistics are at hand.Senseless and baseless attacks on the railroads and onlarge industrial enterprises may furnish cheap weapons.for the politicians, but increased exactions by the farm-ers to the extent of $2,000,000,000 a year constitute aconcrete fact bearing on the problem of the high costof living which it is impossible to overcome or contro-vert by the most persuasive arguments or the mostdemagogic appeals.

Bank officers at this centre are looking forward withmuch confidence to profitable business during theclosing months of the current year and the earlymonths of the new year. The demand for loanablefunds promises to be well in excess of the supply,especially if, as now appears probable, trade andindustry should promptly assume proportions basednot alone on day-to-day requirements, but on pre-parations for a prolonged period of improved times.Our banks can hardly be claimed to hold a super-abundance of cash reserves. The actual cash surplusas reported by the New York- Clearing House lastSaturday was only $20,788,250 (including the trustcompany members of the Clearing House) above re-serve requirements, and represented a gain of but $389,-300 for the week. The requirements had been increased$1,454,700, as a result of an expansion in deposits.Therefore the net increase of $1,844,000 in cashholdings did not fully show in the cash surplus, Oneyear ago the actual surplus (including trust companymembers) was $26.852,950, while two years ago the

banks alone were carrying a surplus of $55,743,400.Thus the position of New York's financial institutionsis relatively less strong than in the immediate past,and this, too, at the beginning of a season when croprequirements promise to make active inroads onbanking reserves in the East as well as on those inthe agricultural sections. That the banks of thecountry are to be called upon on a larger scale thanusual for crop funds, there can be no reasonabledoubt. If, we except oats, there does not appear tobe a single one of the great grain crops that suggestnew records in the volume of production. But takingall the great crops combined, it would not be surprisingif the agricultural year were to prove more productivethan any earlier year.Thus the probabilities point to an increase in the

requirement of banking facilities to move the greatcrops to market. In this direction a feature of thegeneral banking situation of the country that hasbeen brought to our attention recently by one of theleading bank officers in New York will be of interest.We refer to the fact that the banks not alone inNew York but especially throughout the West havenot available the amount of liquid assets that wouldbe especially desirable under current conditions.The banks of the country, according to the bankofficer in question, have their funds tied up oh toolarge a scale with short-term notes and similar financialinstruments that during the last two or three yearshave proven highly attractive investments to banks,which have found it impossible to utilize their reservesin the course of ordinary mercantile business. NewYork banks are probably, in proportion to the volumeof their assets and business, tied up as severely as theinterior institutions. Nevertheless, a feature in bank-ing circles in New York this week has been the offeringby interior banks of very large amounts of theseshort-term notes and other securities for sale withan agreement to re-purchase them at some definitedate in the new year. We are informed that the offersof these notes and short-term securities to New Yorkbanks on the basis we have named have reachedseveral million dollars; but it is questionable whetherany appreciable proportion of the offers has beenpurchased, as New York financial institutions arethemselves pursuing a uniform policy of strengtheningtheir liquid resources. They have no desire to tietheir resources up on any larger scale than at present.One expedient that is being followed quite generallyin New York is the refusal to purchase arlditionalsupplies of commercial paper, although offerings inthis direction are more than usually large and atattractive rates. It seems, indeed, quite a fairstatement that the commercial paper business at themoment is being conducted almost exclusively byout-of-town financial institutions. In addition, theNew York banks are permitting their loans to "runout" and are not, except in very special cases, renewingthem at the old rates.So far as our relations with foreign markets are

concerned, we are informed that Germany has prac-tically repaid every dollar of the loans made byAmerican bankers earlier in the year. New York'sLondon balances are also quite generally concededto have been reduced to normal working proportions.Consequently, there is comparatively slight oppor-tunity to depend on London for banking aid duringthe next few months. London at the moment is amore comfortable money market than New York,day-to-day 'funds ruling there at about 2%, as against

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@3% for call money in New York. This situationhas, we are informed, induced the transfer of somefairly large Stock Exchange committments fromNew York to London to take advantage of the easiercarrying rates. But usually conservative Londoncorrespondents suggest that the easier conditions atthe British centre are likely to prove temporary andfor the moment at least reflect the semi-annual dis-bursements of railroad dividends. There is still acongestion of securities in the hands of London under-writers, however, and the prospects of protractedease in money are not considered particularly bright.Trade and industry in Britain are moving on such anactive scale and the situation in Germany in thisrespect is so completely similar that there seems slightencouragement to look for any fairly permanenteasing up in money rates, either in London or on theContinent.

Paris still remains the cheapest money centre, andhas been loaning quite freely to Berlin within the lastfortnight, technically, we are informed, on Viennaaccount. As long, however, as the ice has beenbroken, it seems fair to expect that French banks willsoon be found to have resumed the exceedingly cordialrelations that existed with the German banks beforethe Moroccan incident of a little over a year ago socompletely disorganized conditions that had existedfor years. An additional feature in the world'smonetary outlook is the approach of peace betweenItaly and Turkey, which, in turn, means a demand forfunds to pay, in some measure, for the destructionof property and the general waste of war. Taking aworldwide view of the money situation, therefore,there is little to suggest a return in the near future toparticularly easy conditions.

The Fall River cotton mills dividend record for thethird quarter of 1912, if taken as an indication of thepresent condition of the manufacturing industry atthat important centre, reflects only a nominal im-provement over the period immediately preceding,and is not quite as satisfactory as for the correspondingquarter of a year ago. It is true that five corporationswhich paid their stockholders nothing in the thirdquarter of 1911 have made distribution this year, buttwo which then paid dividends passed them in thislatest period. Altogether six corporations defaulted intheir dividends for the third quarter of 1912 and 4reduced the rate of last year. With cotton on a lowerbasis of value it was rather expected that better divi-dend results would be apparent in this third quarter,but improvement in business at Fall River thus farhas been, it is reported, largely confined to print-clothestablishments, and this would seem to explain the:passing of dividends by two of the prominent finegoods mills. Our compilation of dividends for thethird quarter shows that the actual amount to be paidout to stockholders in the period of 1912 is only$308,116, or an average of 1.11% on the aggregatecapital invested, as against $309,617, or 1.12%, in1911 and $435,150, or 1.64%, in 1910. The 1912 rateis the lowest in 17 years. For the nine months of thecurrent year the total distribution of $826,250 and theaverage of only 2.98% compares with $1,094,492 and3.94% in 1911 and 5.23% in 1910. The greatest nine-month rate in our record is that of 1907 (7.27%) andthe lowest the 1.33% of 1898.

Transvaal gold production returns for the latest month (July) show an aggregate yield of 766,338 fine

ounces. This is some13,000 fine:ounces greater than inJune, but about the same amount less than in May.It is, however, by comparison with earlier years thatthe really marvelous development of gold mining inAfrica is fully realized, as it is hardly to be expectedthat each particular month should show a better resultthan its predecessor. Our readers, of course, arefamiliar with the fact that the Transvaal has veryappreciably augmented its contributions to the newsupply of the precious metal. In July two years agothe output of the mines was only 638,714 fine ounces,increasing to 709,258 fine ounces in 1911 and 766,338fine ounces in the current year; for the seven monthsof 1910 the product was but 4,298,219 fine ounces, or20,275 fine ounces per diem, whereas a year later thetotals had risen to 4,685,410 and 22,101 fine ounces,respectively, and in 1912 further advanced to 5,309,245fine ounces, or 24,926 fine ounces daily. In the sevenmonths of the current year the Transvaal has producedalmost as much gold as was secured from the minesof the whole world in 1889.

The activity in building construction in the UnitedStates noted in earlier months of 1912 continued intoJuly, for, although the volume of operations was notof as great magnitude as in June, it was larger thanin the month of 1911 and much in excess of 1910.Moreover, that the activity is very well distributedover the country is shown by the fact that 75 of the121 cities included in our compilation report a greaterestimated outlay for construction under the contractsarranged in July than in the month last year, andwhere losses occur they are not heavy as a rule andindicate quite generally nothing more than a mid-summer lull after the practically unprecedented .op-orations of the spring. As measured by the estimated.cost of construction, more has been d6ne in the build-ing line in the elapsed portion of 1912 than in anyprevious corresponding period in the history of theUnited States.In Greater New York the contemplated disburse-

ments covered by the July permits fall a little belowthe amount for July 1911, Brooklyn Borough aloneshowing a gain. For the city as a whole this year'stotal is *$16,518,819, against $17,737,758, or a declineof 6.9%; but contrasted with 1910 there is a gain ofclose to 20%. Outside of Greater New York themonth's contracts comprehend an outlay of $72,522,-166, which exhibits an increase of 7)4 million dollars,or about 11.7% over 1911, and a gain of no less than19 millions, or 35.7%, as compared with 1910. Anumber of the larger cities other thaniNew York recordgreater or lesser losses, but as they in many casesfollow much earlier activity, no special importanceis to be attached to them. Most conspicuous in thiscategory are Chicago, Baltimore, Cleveland, Buffalo,Omaha, Minneapolis, Washington and Philadelphia.On the other hand, many leading municipalities reportconsiderable gains, among them being St. Louis, At-lanta, Memphis, Birmingham, Bridgeport, Cincinnati,Des Moines, Hartford, Houston, Los Angeles, Louis-ville, Milwaukee, Salt Lake City, Springfield, Mass.,St. Paul and Toledo. Including New York, the grandaggregate for the 121 cities isl$89,040,985, as con-trasted with $82,662,409 foriJulyA1911, or a gain of7.7%, and compared with the month in 1910 there isan increase of 32.1%.For the seven months of the calendar year 1912 the

intended expenditure at the same 121 cities, as com-piled by us, totals $579,954,909, 'Against! 525 millions

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in the period of 1911 and 523Y1 millions in 1910, thegain being over 10%. Greater New York's operationsexceeded those of 1911 by 16.5% and 1910 by 6.9%.Outside of this city the seven months' aggregate for1912 makes, of 'course, a new high record, as at 436%million dollars it compares with only 402w millionsin 1911 and 3893 millions two years ago.

In the Dominion of Canada the phenomenal ac-tivity in building operations heretofore referred tocontinued in July. Returns from 33 cities give anintended outlay for July 1912 of $19,329,255, com-pared with $12,817;311 in 1911 and $10,298,343 in1910. For the seven months of 1912 the projectedexpenditure at the same 33 cities (19 in the East and14 in the 'West) aggregates 1073' million dollars, or29 millions more than in 1911 and 4734 millions inexcess of 1910almost 80%. Greatest actiVity isobservable, of course, in the Northwest, where someof the cities exhibit operations more than double thoseof 1911. This is true of Edmonton, where 9 millionscontrast with a little over 2 millions; Victoria, 5 1-3millions, against 1V1 millions, Sic., &c. In the Eastthe notable gains are at St. Ca.therines, Brantford,Fort William; Hamilton, Ottawa, Port Arthur andMaisonneuve.

The official visit of the French Premier, M. Poin-care, to Russia has been the subject of discussionin diplomatic circles in Europe this week and hasattracted' attention in foreign banking circles at thiscentre. As usual in such instances, sufficient secrecyhas attended the real objects of the visit to preventany general statement. But it seems to be very

. generdly ,conceded in diplomatic circles that mattersof first importance to the future of the Europeanpolitical situation are under discussion. News comesfrom Moscow this week that Alexander Kokovoff, theRussian Premier, and Sergius Sasonoff, the RussianForeign Minister, are to visit France next month todiscuss affairs connected with the "Russo-Frenchalliance," and Grand Duke Nicholas Nicholaievitchis to attend the French army maneuvers as represen-tative of the Russian army. The fragmentary dis-patches that have been received in connection withPremier ,Poincare's visit strongly suggest an offensiveand defensive. alliance between France and Russia.The recently announced new naval program by Russiaby which the latter in the course of five years is tobecome a strong naval Power seems to confirm tosome extent at least this view. A dispatch to theParis "Matin" from St. Petersburg on Wednesdayindicates that the new entente may apply also toAnancial matters. According to the dispatch in ques-tion, the French Premier on receiving the JapaneseAmbassador at St. Petersburg stated that France andRussia were, perfectly agreed as regards the new Chi-nese loan. England and Japan, the dispatch inti-mated, had also agreed with Russia in demandingthat the loan should not injure Russia's 'interests inMongolia, and that, folloiving Japan's Manchuriaexample, the loan should not be utilized for arma-ments in Mongolia. The United States and Germanyhave not accepted the conditions. The suggestioncertainly obtrudes, in view of this information, that therecent failure of the Chinese loan, after arrangementsfor it had been definitely made by the syndicate ofinternational bankers, had a deeper significance thanthe more objection by China, to supervision of the ex-penditures.by a representative of the bankers. It willbe recalled that Prince Katsura, representing the

foreign office of Japan, recently, returned to Tokyofrom St. Petersburg, whence he had been on a specialmission. The Prince returned sooner than expectedbecause of the Mikado's death, but he took back withhim to Tokyo, according to cable dispatches, fromSt. Petersburg specific assurances that in all futureemergencies Russia and Japan will act together in theFar East, a policy that is regarded as leading straightto the partition of Manchuria and outer Mongolia andtheir removal from Chinese domination. This is asituation that seems to invest the approaching visitof our own Secretary of State, Mr. Knox, to Japanwith particular significance. Mr. Knox, it is true,officially goes to Japan to attend the funeral of theMikado. The Secretary, accompanied by Mrs. Knoxand by Ransford Miller, Chief of the Far EasternDivision, left last evening and proceeds by way ofChicago and the Canadian Pacific via Banff, and willembark on the U. S. cruiser Maryland from Seattleon Aug. 21 for Japan. The courtesy shown by ourGovernment in sending such a high representative isfully appreciated in Japan, and while it is denied thatany official significance is attached to the trip therecan be no. question that the moral effect will be dis-tinctly beneficial in furthering the friendly relationsexisting between the two countries.

The Senate Panama Canal Bill, which was passed onFriday of last week, and amended the House Bill,was immediately sent to a conference committee ofboth Houses and an agreement of the conferrees was.reached on Wednesday evening. The bill prepared atthe conference passed the Senate yesterday. In theconference bill the Senate recedes from the clause ex-tending free tolls to American ships engaged in foreigntrade. Canal tolls will, therefore, be collected fromAmerican ships in the foreign trade the same as from allforeign ships. This concession was expected to placateGreat Britain, for while American coastwise shippingwill be exempt from tolls, the conditions created aresimilar to those already existing under our navigationlaws, which specifically prohibit any but Americanships engaging in the coastal trade. Another importantchange in the bill as compromised in conference fromthat which passed the Senate applies to the Bourne-Root amendment, which endowed the Inter-StateCommerce Commission with authority to compel rail-roads to divest themselves of water lines when theirownership was "injurious to the public." As a substi-tute the Senate conferrees accepted the House pro-vision prohibiting the ownership by a railroad of anyrater line with which it does or may compete fortraffic. However, this latter provision was modi-fied in order that the large railroads might not bearbitrarily compelled to sell their water-line proper-ties. The modification was in the form of a provisionempowering the Inter-State Commerce Commission,if it finds that water-line service maintained by a rail-road is beneficial to the public, to extend the time towhich such service may be operated beyond July 11914. But every railroad-owned water line requestingsuch an extension of time must subject itself to thecontrol of the Inter-State Commerce Commission as torates, facilities, &c. The following important pro-visions of the Senate Bill, however, were continued inthe bill as recommended by the conference: First,permission is granted American citizens who ownforeign-built ships to receive American registry, al-though without the right to engage in the Americancoastwise trade; second, free admission to American

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ports will be provided for foreign ship-building ma-terials of all kinds as a concession to American ship-builders, who protested that the admission of foreign-built ships to American register would injure theirbusiness by transferring much of it to foreign countries;third, the provision was retained prohibiting the useof the Canal by any ship owned or controlled by a cor-poration operating in violation of the Sherman anti-trust law. Cable dispatches from London show ageneral disposition of the British press to decline toaccept the refusal of free tolls to American ships en-gaged in the foreign trade as sufficiently clearing thesituation. An expression of opinion which seemsrepresentative of the feeling of the British press gen-erally was voiced by the ".London Daily Express" ints issue of yesterday, in which it said:"If any responsible mind in America sincerely

believes that the Panama Canal Bill can be put rightby dropping the clause allowing free passage toAmerican ships engaged in foreign trade and retainingthe clq,use allowing free passage to American shipsengaged in the coasting trade, then that mind mustbe childlike and bland. This is no more than thechange of a letter. The offence against internationalmorality and the menance to British rights securedby the Hay-Pauncefote Treaty remain intact. In-deed, it is hard to avoid the suspicion that this quiteindefensible clause which was added after the Britishprotest was lodged was inserted in order that bydropping it an air of sweet reasonableness might begiven to the original vexation."

Washington advices yesterday presented a newphase of the Canal situation in its relations to ourforeign treaties. The Washington correspondent ofthe New York "Times", for instance, declared thatprominent Senators are seriously alarmed at thediscovery that our twenty-five arbitration treatieswith nearly every civilized country in the worldare seriously imperiled by our course on the PanamaCanal Bill. Our arbitration treaty with Great Britainwhich figured so prominently in the Senate debateson the no-toll question will expire by limitation nextApril. In the face of our action disregarding the Hay-Patincefote Treaty as to the tolls, and general opinionthat the Senate will refuse to arbitrate that subject,there is grave fear that Great Britain may finallydecide to let the arbitration treaties lapse withoutrenewal, and this for practical purposes wouldabrogate similar treaties with other nations. Howseriously Great Britain resents our course in regardto tolls is indicated already by her failure to acceptour invitation to participate in the Panama Exposition.In the opinion of many Senators, the proposed legisla-tion in its final form not only bars the SouthernPacific vessels that operate between New York andNew Orleans from the Panama Canal, but will compelthe divorcement of the New York New Haven &Hartford and other big railroads from their steamshipinterests, representing an investment of many millionsof dollars.

Cable advices still continue to suggest the earlyarrangement of satisfactory terms of peace betweenTurkey and Italy. London cablegrams state that anarmistice will be announced in the very near future,and that Italy, in consideration of the transfer byTurkey of its sovereignty rights in Tripoli, will pay inyearly installments a large indemnity to Turkey.Nothing of an official nature, however, has yet beenannounced in this direction, though this, if history is torepeat itself, need not necessarily be considered surpris-

ing. Turkey's home affairs continue in a highly uncom-fortable state. It is reported that diplomatic conversa-tions have taken place with regard , to the Austrianproposal to grant autonomous government to theEuropean Provinces of Turkey with a view to givingpractical independence to Albania and Macedonia.According to dispatches from Constantinople, com-plaint is made in official circles that although Turkeyhas done everything possible to secure an amicable.settlement with Montenegro regarding the frontierquestion, even to disavowing the action of her own.Minister at Cettinje, the Montenegrin Government,probably anticipating an unfavorable finding by the.mixed commission that was agreed to, has now starteda fresh move by appealing for the support of thePowers in favor of securing a certain undefined frontierratification and is mobilizing her army facing theGussinyeli district of Albania. Pacha, Ministerof Interior in the new Turkish Cabinet, resigned hisoffice on Tuesday, giving as the reason for his actionill-health and excessive work.

In our own hemisphere the affairs of the lesserrepublics are more than usually active in the directionof so-called "revolutions." In Nicaragua the nego-tiations that took place early in the week for peacebetween the Government and the insurgents havefailed because General Mena, the commander of thelatter, insisted that he be reinstated in the War Minis-try, from which office he had been deposed by Presi-dent Diaz. General Mena also insisted that theNicaraguan Cabinet be completely changed in accord-ance with his desires, and that General Chamorro,commander-in-chief of the Nicaraguan army, be exiledfrom the country, together with other military officers.American marines were landed at Managua, Nicaragua,as a result of General Mena's bombardment of thecity and aided in repulsing the rebels.In Mexico the formal conclusion of the revolutioz is

still delayed. General Orozco, 'chief.. of the revolu-tionists, admits that negotiations have been underway with the Federals, but says that they. are nowsuspended so far as he is concerned. He declares thatnegotiations were offered by . Rafael Hernandez,Mexican Minister of the Interior, when Hernandezwas in El Paso, Texas, last week, and says, while theywere discussing terms for the basis' of peace, Presid6ntMadero wired to General Ikeda to do as he thoughtbest with the rebels if any should surrender. Orozcodeclared that he would not accept such terms. Orozco'sproposition to Hernandez was that. Madero resign andthat De la Barra be declared Provisional President, anda new election be held as soon as possible, at whichMadero could be a candidate for re-electionif he wished.War clouds that are said to be hanging over the twin

republics of Hayti and San Domingo are giving.officialsof our own State Department some anxiety. TheHaytian Government is confronted by internal dissen-sion and by threatened war with. San Domingo, Dr.Peynado, the Dominican .Minister in Witshington,has, it is reported, been instructed to. open negotiationsfor a loan of one million dollars with: which to wagewar against Hayti. Activity 'in. the Haytian colonyat Kingston, Jamaica, is taken to indicate, accordingto dispatches from that city, that preparations areunder way for the formation of an expedition to oustthe new President of Hayti, General Tancrede Auguste,who was elected by the Haytian Congress on Aug. 8,following the tragic death of President Leconte. .

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While day-to-day money in London has ruled easierduring the week and the immediate situation has beenaided by the smoothness with which the fortnightlysettlement was carried out, the private bank discountsin Lombard Street still are significant of an exceedinglyfirm undertone. The official Bank of Englandminimum rate was not changed on Thursday from 3%.Nevertheless, the outside Bank rates for spot bills, allmaturities, at the close last evening were 3@33'%,while bills to arrive command 314%. Call moneyduring the week at the British centre has been readilyavailable at about 2%, notwithstanding the settle-ment, and in instances has been fractionally belowthat figure. There has, to some extent at least, beena transfer of speculative commitments from New Yorkto London to take advantage of the lower rates atwhich they can be carried in London. Reports werecurrent in London early in the week that New Yorkbankers were arranging for a return of gold from Paris,but no confirmation of the reports has been availableat this centre, and thus far no engagements for theimportation of the precious metal have been made.Excellent information available here is that Berlin, by'borrowing \indirectly from Paris, has been able to payoff all its recent New York loans, and there is also,excellent reason to believe that the recent heavy bal-:awes that New York banks and bankers have beentarrying in London have been drawn down to normal'working proportions. We discuss this matter ingreater detail in another column. The London stockmarket appears to have become much more cheerful, asa result largely of the improved money situation.Good evidence of this is the advance in Consols aswell as in other high-grade securities. The closingquotation of Clonsols last evening was 75 7-16, whichcompares with 74S a week ago. In Paris privatebank discounts remain unchanged at N% for allmaturities, both for spot bills and those to arrive.Discounts in Berlin are well maintained at 4% forspot bills and 4%% for bills to arrive. Amsterdamand Brussels both repeat last week's figures at 3% and3M%, respectively. The official Bank rates at leadingforeign centres are: London, 3%; Paris, 3%; Berlin,432%; Brussels, 4%; Amsterdam, 4%; Bombay, 3%,and Bengal, 3%.The weekly statement of the Bank of England was

a good one, although, considering the season, it couldwell be better, as this is the time of year when it isnecessary to prepare for the active requirements of thefall. The reserve showed an increase of 1,661,000,bringing the total up to 29,814,000, against 28,-609,272 one year ago and 29,959,033 two years ago.Nevertheless, the proportion of reserve to liabilities isonly 49.82%. This is an improvement from 48.81%last week, but compares with 55.91% one year ago,53.19% in 1910 and 51.52% ten-year average forthe corresponding week in August. The Bank gained1,186,361 in its gold and bullion holdings. It ob-tained the greater part of the 850,000 of Gape goldoffered in the open market on Monday, though this, asusual, does not appear fully in this week's statement.The actual bullion holdings now total 40,878,192,comparing with 40,083,642 in 1911 .and 39,921,963in 1910. The loan item was expanded 528,000 thisweek, making the aggregate of the Bank's loans34,141,000, and is well in excess of the figures of ayear ago, which were 25,626,161, or of 1910, whenthe total was 28,389,988. Public deposits are notbeing released as rapidly as expected, the decrease thisweek amounting to only 264,000. Ordinary deposits

registered an expansion of 2,412,000, notes reservedincreased 1,698,000, while notes in circulation de-clined 475,000. Our special correspondent furnishesthe following details of the gold movement into andout of the Bank of England for the Bank week: Im-ports, 846,000 (wholly bought in the open market),exports, nil, and receipts of 340,000 net from the in-terior of Great Britain.

The weekly statement of the Bank of France ap-peared on Friday of this week, as the Paris market wasclosed on Thursday for the "Assumption Day" holi-day. A feature of the statement was the reduction of10,450,000 francs in silver, which brings the totaldown below the 80p,000,000-franc markto be exact,to 796,025,000 francswhich compares with 834,-225,000 francs one year ago at this date and 842,150,-000 francs two years ago. The gold holdings increased2,250,000 francs, making the total now held by thebank 3,286,925,000 francs, which compares with3,175,900,000 francs in 1911 and 3,392,150,000 francsin 1910. The statement, taken altogether, was asatisfactory one, as it indicated a curtailment of41,425,000 francs in circulation and of 19,450,000francs in discounts. General deposits showed a re-duction of 17,600,000 francs, treasury deposits an in-crease of 24,150,000 francs, and advances a reductionof 10,450,000 francs.

On the local money market the undertone has beenfirmly maintained this week and the earlier maturitiesfor time accommodation closed at fractionally higherquotations. The New York banks may be said tohave completely withdrawn as buyers of mercantilepaper, leaving that field to the out-of-town institutions.The banks are also pursuing a fairly uniform policy ofrequiring payment of loans as they mature, and at anyrate are in few instances renewing at the old figures.The total reserve above requirements of New Yorkbanks and trust companies, according to last Satur-day's statement of the New York Clearing-HouseAssociation, was, as we have already shown, $20,788,-250, which was an increase of only $389,300 for theweek. A year ago the surplus held by the Clearing-House banks and trust companies was $26,852,950,having been increased from $17,906,350 the week pre-ceding, while two years ago the surplus held by thebanks alone (the trust companies at that time notbeing members of the Clearing House) amounted to$55,743,400. The current surplus, therefore, cancertainly not be considered as indicating exceptionalstrength, especially in view of the promise of an unusualdemand during the coming autumn, when the bankswill be called upon to aid in supplying the financialrequirements of an unusually large harvest, an in-creased activity in trade and industry, and, accordingto seemingly general expectations in financial circles,an improved speculative movement in Stock Exchangecircles.

Call money during the week covered a range of 23@,3% and banks and other lenders are showing a dispo-sition to regard the lower figure as their minimum.Qn Monday 2% and 3% were the extreme quotations,with renewals at 23%; Tuesday's and Wednesday'shighest quotation was 2%, the lowest 23/b and theruling basis 2 8; on Thursday the maximum rate of3% was again reached, while 2%% was the lowestand 274% remained the renewal basis. On Friday2%% was the highest, 2%% the lowest and 29% theruling rate. Time money closed firm at31A @33% for

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AUG. 17 19'2] THE CHRONICLE 38760 days, 3Y1@4% for 90 days, 43 @OA% for fourmonths and 4%@4%% for five and six months. Mer-cantile paper, as already noted, is not in demand inNew York. The supply is quite plentiful, but New Yorkinstitutions have no desire to tie up their funds for longterms. Paper is selling out of town, however, on thebasis of 5@532% for choice single-name bills extend-ing beyond January. Sixty and ninety-day endorsedbills receivable are quoted at 5%, but these are notoffered freely. Bills not usually classed as choice arequoted at 5@,6%

Sterling exchange may be called seasonably weak.With the firm discounts abroad there has been littleencouragement to continue to draw finance "loan"bills, and commercial bills have not yet begun to ap-pear, though by the end of the month we may expectsome offerings in this direction. The large grain cropsare expected. to become a factor in the foreign exchangesituation this year. A distinct improvement is gen-erally anticipated in foreign banking circles here in ourexports of corn. These expectations are based on theexceptional yields this year of oats and hay, which, itis argued, will release for export a large part of cornthat would otherwise have been required for feed.Already a good demand for grain for export is reportedand active ocean engagements for grain at advancingfreight rates suggest that in shipping circles at leastpreparations are under way for a particularly heavyexport movement of our cereal crops. Cotton billswill also soon become available; and there seems justi-fication for the expectation of an early outward move-ment of that staple. The London check rate is wellmaintained on the Continent, the Paris quotationclosing at 25 francs 27 centimes, which is an advanceof IA centime for the week, while the Berlin rate is34 pfg, lower at 20 marks 47 pfennigs.Comparing with Friday of last week, sterling ex-

change on Saturday was irregular but quiet. Sixty-day bills were 5 points lower at 4 8445@4 8455, thoughdemand bills and cable transfers were without changeand were gm-tied at 4 8730@c4 8735 and 4 8765@4 8775, respectively. On Monday a decline of 15points to 4 8430@4 8440 took place in 60-day billsand of the same amount to 4 8715@4 8725 for demand.Cable transfers declined 10 points to 4 8755@4 8765.The weakness suggested speculative operations onshort account. For the same reason the decline onTuesday made further progress, 60-day bills closing5 points lower at 4 8425@4 8435; demand ..also 5 pointslower at 4 8710 @4 8720 and cable transfers 15 pointslower at 4 8740@4 8750. An additional decline of5 points to 4 8420@4 8430 took place in 60-day billson Wednesday and of 10 points for demand, while cabletransfers remained unchanged. On Thursday 60-daybills were again reduced an additional 10 points,closing at 4 8410@4 8420. Checks and cable trans-fers were without change. There was somewhat of adisposition to cover short commitments on Friday andan advance of 5@10 points took place. Closing quota-tions were 4 8415@4 8425 for 60 days, 4 8710@4 8715for demand and 4 8745@4 8750 for cable transfers.Commercial on banks closed at 4 833/8@4 84 anddocuments for payment 4 83M@,4 84M. Cotton forpayment ranged from 484 to 4 8434; grain for pay-ment 4 8434@4'843/2.

The New York Clearing-House banks, in their oper-ations with interior banking institutions, have gained$2,954,000 net in cash as a result of the currency

.

movements for the week ending Aug. 16. Theirreceipts from the interior have aggregated $10,364,000,while the shipments have reached $7,410,000. Add-ing the Sub-Treasury operations, which occasioned aloss of $3,500,000, the combined result of the flowof money into and out of the New York banks forthe week appears to have been a loss of $546,000,as follows:

Week ending Avg. 16 1912,Into

Banks.Out ofBanks.

Net Change inBank Holdings.

Banks' interior thOyement $10.364,000 $7,410,000 Gain $2,954,000Sub-Treasury operations 23,000,000 26,500,000 LoSs 3 ,50a,0e0

Total $33,364,000 $33,910,000 Loss $546.000

The following table indicates the amount of bullionin the principal European banks.

. Banks ofAug' 151012. Avg. 17 1911.

Gold. Silver. Ttal Gold. I Sitr(r. Total.

England _ _ 40,878,192 40,878,1(2 40,083,s42' ......40,083,642France _ 131,656,720 31,840,760 163,407,480 27,036,240 33,88,20( 160,925,440Gentiany _ 46592,900 113,864,950 63,457,840 15,299,500 613123,800Russia .a 153,498,0M 8,173,000 161,6.1,0.0 115,062,0(, 7,727,000 152,789,000Aus.-Hunt 51713,000 12,090,000 63,803;00' 55,775,090 12,408,090 , 68;18.3;000Spain _ 17,074,000 20,963,000 47,037,00( 16,613,000 30,832,0011 47,475,000ltaly_d _ 42,385,000 3,650,00o 46,035,00C 40,100,000 3;580;000 43,680,000Netheri'd( 11,908,000 70,300 12,790,30t. 11,845,009 1,683,100 13,528,100Nat.Belg.e 7,1p4,000 3,592,000.10,776,001 6,691,233 3345667 10,037,000Sweden _. 5,341,000 5,341,00( 4,734,000 4,734,000Switzerl'd 6.798,000 6,793,00( 6,428,00 6428,000Norway 2,253,000 2,253,00( 2,222,000 2,222,000

Total week 111,366,812 106,966,010 324,332,821 301,414,515 108;794,467610,208,982Prey .weet 515,817,571 108,041%890623,859,46' 199,466,595 10'1"420 157

, '308,886,752

CURRENCY REFORM AND THE POLITICAL..CAMPAIGN.

We have heard numerous expressions, since theparty conventions were held, of disappointment thatnone of the platform declarations of these parties hasaggressively recommended either the Aldrich currencyplan or any other scheme of banking reform, equallysane, comprehensive, practical and intelligible, as anissue in the coming campaign. As a matter of fact,the Republican and Democratic party declarations,as well as the third party declarations at Chicago lastweek, have alike taken refuge, so far as concerns theircurrency planks, in glittering generalities, manifestlyframed with a view to evading explicit assertion ofopinion on the main practical details of the question.The Republican platform, adopted on June 22 atChicago, had this to say:"The Republican Party has always stood for a sound

currency and for safe banking methods. * * *It is committed to the progressive development of ourbanking and currency system. Our banking arrange-ments to-day need further revision to meet the re-quirements of current conditions. We need measureswhich will prevent the recurrence of money panicsand financial disturbances and which will promote theprosperity of this country by producing constantemployment."We need better currency facilities for the movP-

ment of crops in the West and South. We needbanking arrangements under American auspices forthe encouragement and better conduct of our foreigntrade. In attaining these ends the investments ofindividual banks, whether organized under nationalor State charters, must be carefully protected and ourbanking and currency system must be safeguardedfrom any possibility of domination by sectional,financial or political interests."

It will be observed that this declaration is alto-gether negative in character, does not recommend theAldrich bill, and in fact is decidedly vague so far asconcerns the outlining of any concrete plan or theexpression of opinion as to definite methods. TheDemocratic platform, adopted on July 2 at Baltimore,says this:

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3S8 THE CHRONICLE [VoL. Lxxxxv."We oppose the so-called Aldrich bill or the estab-

lishment of a central bank; and we believe the peopleof the country will be largely freed from panics andconsequent unemployment and business depressionby such a systematic revision of our banking laws aswill render temporary relief in localities where suchrelief is needed, with protection from control- or do-minion by what is known as the Money Trust."Banks exist for the accommodation of the public

and not for the ;ontrol of business. All legislation onthe subject of b tnking and currency should have forits purpose the iecuring of these accommodations onterms of absolute security to the public and of com-plete protection. from the misuse of the power thatwealth gives to those who possess it."

Here is a more definite note, in the way of expressingantagonism to the Aldrich bill. Yet, curiously enough,in such principles of legislation on the question asare hinted at in the above paragraph, the Aldrich billis really described. Certainly the Democratic declara-tions cannot be said to have taken ground explicitlyagainst the basic ideas incorporated in the report ofthe Monetary Commission. In a way, it may be saidthat the Aldrich bill is disapproved as a matter ofform, but that the underlying principles of that meas-ure are immediately afterward recommended.That there should be regret at this absence of any

clean-cut declaration on a question of so great im-portance, framed in language such as would enablecampaign orators to set forth the advantage of cur-rency and banking reform to voters during the presentcampaign, is natural enough. Yet, as a matter offact, it is known to all people interested in the currency-reform propaganda that the men chiefly identifiedwith that reform have urged from the start that thediscussion be kept out of the Presidential contest.It was, we believe, unanimously held in such quartersthat the fortunes of constructive currency legislationought not to be staked on the vicissitudes of an ex-citing Presidential campaign, where a multitude ofother extraneous issues would divert and confuse thepublic mind.Let us suppose that one party had unqualifiedly en-

dorsed in its platform the Aldrich plan as it stands; thequite inevitable result would have been that the otherparty would, directly or indirectly, have taken oppo-site ground, and that the whole discussion would there-by have been thrown into the field of angry partisancontroversy. There would have been persistent ap-peal to ignorance, sectional prejudice and party pas-sion in the campaign discussion's; the ultimate outcomeeasily might have been to set back for years the pros-pects of intelligent currency reform. Some of the menwho have borne the heat and burden of the prelimi-nary work on currency reform had no hesitation indeclaring openly, as the Presidential contest drew near,that the only wise policy was to keep the currencydiscussion altogether out of the campaign. This done,and the contest over other issues ended, it would betime to take up the currency problem dispassionately,and the prospect for its intelligent consideration byCongress would be vastly better from the very factthat the public mind had not been confused andwearied with partisan discussion of it prior to theelection.These rersonably obvious facts, we have no doubt,

provide sufficient explanation for the absence of anydefinite declaration on the question in the platformsof either of the two great parties. We have not yetreferred to the third party's declaration on the cur-rency, except in our citation from the remarks of the

Socialist representative in Congress last week, to theeffect that the currency plank of the third-partyorganization "smacks of greenbackism." The truth isthat the third party's declaration was for the most.part mere verbal repetition of Mr. Roosevelt's personalviews as expressed in his long speech to the conven-

.tion. Mr. Roosevelt had said that the "system to beadopted should have as its basic principles soundnessand ela$icity"; that the currency "should flow forthreadily at the demand of commercial activity, andretire as promptly when the demand diminishes"; thatit should be "automatically sufficient for all legitimateneeds of business in any section of the country." Forourselves, we do not remember ever to have heardfrom any quarter a dispute of these perfectly safeprinciples of currency issue; they are among thecommonplaces which drop most readily from the lipsof orators unfamiliar with the subject, and equippedfor remarks upon it only through ability to repeat thecatch-words which they have heard from some one elseand which they are sure could awaken no oppositionanywhere. The only remark of any interest on thequestion in that speech was the statement that "con-trol should be lodged with the Government"whichwas the ground for Mr. Berger's hint at a fiat-moneyleaning by its author.The third-party platform itself, after repeating word

for word Mr. Roosevelt's general declarations, went astep further in remarking that "the present methodof issuing notes through private agencies is harmful andunscientific." It emphasized its candidate's declara-tion that currency issue was "a Government functionfundamentally," and denounced the Aldrich plan be-cause the provisions of that plan would "place ourcurrency and credit system" elsewhere than immedi-ately in the hands of Government. This was arather unmistakable declaration for Government paperissues. Whether such an attitude is to be taken asthe expression of the convention's views or of Mr.'Roosevelt's private opinions, we regard as immaterial;every one knows that where he did not draw up eachseparate plank of the convention's platform, he re-viewed its declarations and allowed none of them tobe submitted until personally satisfied with what theysaid. But we doubt if the third party's opinions onthe currency will interest or influence the general publicany more than the similar declarations by the Prohi-bition Party in former Presidential elections used to do.

If, now, we ask in addition, what is the attitude ofthe candidates, there is even more reason to infer thatthe question will not be an issue in the campaign.President Taft did not mention currency reform in hisspeech of acceptance. Governor Wilson, as we haveheretofore pointed out, indulged in some very general,though sufficiently conservative, observations, andadmitted that he "did not know enough about thissubject to be dogmatic about it." Thus, with theexception of the raw, crude and potentially dangerousnotions expressed by Mr. Roosevelt, what we have isa general agreement to postpone consideration of thesubject.What) then, can be said about the broader outlook

for currency-reform legislation? Our own opinion isthat definite work on banking and currency legislationwill be taken up early in the next Congress, whicheverparty wins the November election. No party can, infact, afford to neglect this problem; nor, in the con- ,sideration of its details, can the Aldrich plan as itstands be possibly ignored by any committee or any ,party. This is true, first, because any discussion

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AUG. 17 1912] THE CHRONICLE 389

would necessarily begin with consideration of the singlepractical measure which has as yet been drafted;second, because, to whatever extent some parts of theAldrich plan may fail to commend themselves to oneor the other body of voters or legislators, there arevery many parts which, when properly explained, willappeal to every intelligent man.In fact, it is highly probable that, when properly

explained, the general scheme will be recognized bythe average citizen as definitely in his personal interest.The "Chronicle itself has objected to some of theprovisions incorporated in the bill as it passed fromthe hands of the Monetary Commission. But this hasnot prevented our hearty endorsement of the generalplan, nor have we ever doubted that the frameworkas it stands could be effectively and satisfactorily usedfor further constructive purposes.One of the most eminent and most active "Progress-

ive" Congressmena public man whose voice is quotedwith great respect in the councils of that factionstated publicly not long ago that he and the peopleof the Western State which he represents approved thegeneral principles of the Aldrich Bill, on the ground thatthey wanted protection against currency famine at atime of future panic, and that they were well-disposedtoward the Aldrich Bill's provision whereby nation-wide regulation of the interest rate in the direction ofuniformity and reasonableness would be made possible.We are confident that Senator Cummins's frank expres-sion of opinioncoming from a quarter whence an-tagonistic views might, perhaps, have been expected,was fairly typical. When the heat and excitementof the Presidential campaign have died away, we shallhear More of this public sentiment in the direction of ascientific, conservative and reasonably prompt enact-ment of a banking and currency reform law.

SOME REVOLUTIONARY PLANS OFINVENTORS.

While the news columns of the daily journals reekwith campaign matter, mingled with stories of strikesbegun or threatened, until the tired reader wonderswhy only discouraging and unpleasant things are reck-oned news fit to print, the inventors and scientistskeep busy, with hopeful enthusiasm undiminished.The currents whirl on the surface, but the depths arecalm. It may be encouraging and helpful to notewhat some of these constructive revolutionists aredoing.The latest from them is that two boys (neither of

them past 21) have achieved a practical wireless tele-phone, after six years' experimenting. The wirelessalready familiar is a telegraph, communicating by adot-and-dash alphabet; this is a telephone, carryingthe voice itself, and greatly magnified. The secret issaid to be in two small coils with "anomalous winding";according to past theory and practice, this winding iswrong in principle, yet it produces results. Theseyoung inventors claim to have sent 700 Miles, and asuccessful transmission for 160 miles was lately re-ported from Italy. With this as a beginning, we mayinfer that the reach will soon be unlimited, as Mr. Mar-coni considers that of his invention to be.From the beginning of the steam engine, its service

has been marked by a constant and large wasteful con-sumption of fuel, and this loss has defied mechanicalskill thus far. Use of oil instead of solid coal in marinepractice is not new, and the latest claim is that a re-cently-launched vessel with "explosion" engines ofvery large size May prove the pioneer in a change which

will greatly reduce the costs of carrying .and greatlyconserve the known coal that remains. Somewhatakin to this is a claim that a jet of coal gas or vaporizedoil, directed upon "a redhot, porous solid," producesan incandescent heat so intense that one difficulty isto find a material which can endure it. The claim isthat one half the former rate of gas consumption willsuffice to obtain a given temperature, and that thisis the most economical mode of steam-producing yetdiscovered.More startling is the vision of an English scientist,

Sir William Ramsay, of producing power by turningcoal into gas where the coal now lies in the earth. Hewould utilize seams or beds which are worthless in thesense of profitable working. Having sunk three con-centric tubes, he would force down air for the combus-tion between the second and third tubes; then the coalwould burn where it lies, and the resultant "producer"gas would rise in the space between the first and secondtubes. This gas might possibly be carried profitablyfor ten miles in pipes, but the effective method wouldbe to turn it int() electricity right there and transmitthat. He conceived that it might be possible to pro-duce electric power at a tenth or a fifth of its presentcost. If any such reduction as either of these couldbe made, it would mean electrification of railways,supply of electric power instead of coal to factories,and domestic lighting and heating at far less than pres-ent cost. "If this succeeds," said Sir William, "a can-dle may be lighted in England which will not be ex-tinguished in our time."The electric power obtainable from waterfalls is

unlimited and inexhaustible, and the melting caps ofice and snow on mountain peaks have received thesignificant name of "white coal." Much has been ac-complished already in utilizing this power commer-cially, but the difficulties of transmission, because ofthe cost of copper wire and the material resistance tothe current, have as yet been overcome for only a fewhundred miles of distance. Just at this stage wirelessenters once more. and Mr. Nicola Tesla offers forecastswhich stir the imagination. He has demonstrated inactual tests, he says, that a powerful current from aproper wireless transmitter sets the entire plant intovibrations like a wire, and to the electrician "thismeans that the current wave traverses the globe with-out appreciable loss, and therefore that all kinds of im-pulses, from the feeble electrical tremors caused by thehuman voice and affecting the sensitive diaphragm ofa telephone, to the powerful waves of a trolley wire,can be transmitted integrally from one end of the globeto the other." %tExcept for the mention of "the powerful waves of

a trolley wire," this merely reaffirms the wireless tele-'phone, but Mr. Tesla goes on to the last great step ofwireless power. He declares it a reasonable deductionthat power derived from the waterfalls of the Colum-bia and the great falls of the Zambesi, in Africa, canbe made to run .subway trains in New York. Foranother step, he declares that ocean-going ships needno longer carry fuel, but that the consumption can beat a central station, from which the power impulseswill go (it is impossible to avoid saying "be wafted")to the ship's engines. The power supply could not beexhausted by any delays, since "the ship would be inconstant touch with her source of energy-supply, aswell as in communication with the outside world atevery point of her course."He proceeds to mention airship propulsion and con-

trol by wireless, and some reported experiments from

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390 THE CIIRONICLE [VoL. Lxxxxv.

Stockholm, which are believed to show that "high fre-quency currents" have a valuable potentiality in thera-peutics, and in aiding development of backward chil-dren. It would be easy to add to this a belief in thepossible value of electricity in agriculture, and therehave already been positive stories of stimulating plantgrowth by applying it.To accept these stories unreservedly, and expect

speedy verification, and to decry them as incredible,would be alike irrational. They seem as dreams, butso many dreams have already become real that weshould be slow to declare anything impossible. Elec-tric power in commercial development is not yet aquarter-century old. Multiple telegraphy through asingle wire once seemed impossible. So seemed theX-ray, the qualities of radium, and wireless telegraphy;and the "waves" are so mysterious that transmittingpower by their use need not seem incredible. We canonly say that in an age of successive wrestings of.mar-vels out of the great realm of unknown nature, we can-not conceive the final limit.What peaceful revolutions may come from new dis-

coveries challenges imagination. If coal is burnedwhere it lies, strikes by miners must come to an end.If transmitted electric power and heat are supplied tofactories and homes, organized labor will meet con-ditions hard to overcome. .Possibly the inventors andstudentsthe men who construct, and not the oratorsand politicians, the men who pull down, are to solvethe problems of this already straining century. Atleast, we may take heart to believe that the earth isnot yet burned out, and that the resources of the planof the universe will be found equal to each newemergency

SUBSCRIPTIONS TO STOCK, AND AGREEMENTSFOR RE-PURCHASE BY THE CORPORATION.A contract of subscription to the capital stock of a

corporation should be distinguished from a purchaseby an individual from a corporation of shares ofcapital stock of the latter. An interesting case con-struing an agreement in relation to the purchase ofshares of stock from a corporation is that of Sarbachvs. Kansas Fiscal Agency, decided by the SupremeCourt of Kansas March 9, 122 Pacific Reporter, 113.The defendant corporation sold 100 of its shares

of stock to an individual, taking his note, due in sixmonths, and giving him a written agreement that"his note given in payment for stock" should not bediscounted before maturity, and that if at any time,for any reason, the purchaser should desire to surren-der the stock certificate he might do so and receivehis note back, together with any profit that mightaccrue ;in replacing such stock; also any money hemight have paid on the note. He receipted for stock"purchased by me"; also receipted for a dividend"on certificate No. 330 for 100 shares of the capitalstock of the said company owned by me August 151907." The Court held that he became a stockholderand not a mere optional subscriber. The case arosethrough an attempt by the purchaser to compel thereceiver of the corperation to 'refund the amount paidaccording to the agreement, and the Court held thatas between the plaintiff and the other stockholders,his contract was one that equity would not enforce.Touching the validity of such agreements, the

Court says: "It would seem true, as a matter of prin-ciple, that a solvent corporation, acting through itsofficers, who are authorized by the stockholder or

by its charter, might, as between itself and a sub-scriber, contract to purchase back his stock. Butthis does not mean that it could do so regardless ofthe rights of creditors, or that an insolvent corpora-tion, acting through its officers, without direction orknowledge of its stockholders, could do so at theirexpense, and over their protest. The reason andjustice of the thing, as well as the overwhelmingweight of authority, is that subscribers to the sharesof a corporation should stand on an equal footing.Every one knows that subscriptions are often inducedby knowledge that other investors have subscribed,and it is the usual and customary thing to make useof this fact to secure investments by others who aresolicited. If such subscriber, without the knowledgeof the others, enters into a contract with the companyby which he is allowed to remain in if the venture issuccessful, and retire without loss if it proves a failure,the most primary promptings of justice and fairdealing dictate that he should not claim this ad-vantage against the other shareholders, when suchclaim amounts to his gain, as measured by theirloss."

Subscriptions to stock on conditions subsequent,or upon special terms are absolute subscriptions whichmake the subscriber a stockholder and render himliable as such from the time when his subscription isaccepted, whether the conditions are performed ornot. The special terms attached to the subscriptionare regarded as independent stipulations, the remedyfor the breach of which is an action against the cor-poration for damages. The condition subsequentis the same as a collateral agreement between thecorporation and the subscriber.Where there is continued in the contract of sub-

scription an express contract to pay, the personalliability of the subscriber is admitted in all the States.The provision need not necessarily be in the agree-ment signed by the subscriber, but may be found in thegeneral law under which the subscription is made,and which is impliedly incorporated in the contractof subscription. A contract to pay for the sharessubscribed is supported by a sufficient considerationand is binding on the subscriber. Where, however,the promise to pay for the shares is express, whether itis contained in the agreement of subscription orresults from a provision in the law in contemplationof which the subscription is made, a provision thatthe stock may be forfeited or sold for non paymentof calls will not exclude the remedy of an action at lawupon the promise to pay. Where there is an expresspromise to pay, the right of the company to sell orforfeit the shares for delinquent calls is cumulativemerely and does not bar an action of assumpsit toenforce the personal liability of the subscriber.The difficulty is to determine whether a particular

form of subscription contains an "express promise"to pay for the stock subscribed. Where there is noexpress agreement to pay in the contract of sub-scription; the courts of the various States are not inharmony as to whether any personal liability arisesfrom the mere agreement of subscription. Accordingto the rule held in certain New England States, asubscription to the stock of a corporation raises noimplied promise to pay for them, at least where aremedy of forfeiture or sale is provided by the charterin t