"The lowest quotations for these bond and note issues were reached in 1917, when the cause of the Allies assumed a gloomy appearance. The depression was aggravated by the general decline of the entire securities market in the later part of that year. Some recovery occurred by the end of last year, but the beginning of 1918 saw them still depressed. Last March, April, May and June, when the great German drives were in progress, they showed little disposition to break, but after the active participation of the American Army in the fighting began and news came that the counter-offensive had assumed a decided and successful phase, an assertion of strength took place in foreign government bonds, carrying quotations 'not only to the highest of the year, but in some instances to the best figures attained since they first made their appearance in the American market.' The following tabulation is presented by Bradstreet's as giving the range of prices for the most prominent bonds and short-term notes of foreign countries during 1917 and 1918, with the quotations for them on August 22nd:
| /——1917——\ | /——1918——\ | Aug. | ||||
| High | Low | High | Low | 22 | ||
| Am. For. Sec. 5s. | 1919 | 977/8 | 90 | 98 | 94½ | 97½ |
| Anglo-French 5s. | 1920 | 95 | 817/8 | 95 | 88¼ | 94¾ |
| Canada 5s. | 1926 | 100 | 89 | 95 | 907/8 | 92 |
| Canada 5s. | 1931 | 100¼ | 87½ | 94 | 887/8 | 923/8 |
| Fr. Republic 5½s. | 1919 | 101 | 91½ | 99 | 94 | 987/8 |
| U. Kingdom 5s. | 1918 | 985/8 | 95½ | 100 | 97 | 997/8 |
| U. Kingdom 5½s. | 1919 | 987/8 | 93¼ | 99¼ | 95¼ | 98¾ |
| U. King. 5½s, new | 1919 | 1019/16 | 95¼ | 100 | 9¾ | 995/8 |
| U. Kingdom 5½s. | 1921 | 98½ | 84½ | 95¾ | 915/8 | 953/8 |
| French Cities | ||||||
| Paris 6s. | 1921 | 967/8 | 73½ | 921/8 | 815/8 | 917/8 |
| Bordeaux 6s. | 1919 | 967/8 | 74 | 95½ | 84 | 947/8 |
| Lyons 6s. | 1919 | 967/8 | 74 | 95½ | 84 | 94¾ |
| Marseilles 6s. | 1919 | 967/8 | 74 | 95½ | 84 | 94¾ |
| Russian Govern.[6] | ||||||
| External 6½% | 98¾ | 45 | 64½ | 33 | 61 | |
| External 5½% | 1921 | 985/8 | 36 | 60½ | 34½ | 57 |
[6]Curb market quotations.
Diagram Showing the Effect of the War on the Prices of Stocks
[(See explanation on page 32)]
"British issues, as shown above, declined least of all, 'and consequently had less ground to regain in the rise,' Bradstreet's adds:
"The feeling of confidence in England's credit has all along been a factor in connection with its American obligations. This will doubtless be strengthened by the announcement made this week that the United Kingdom secured 5 per cent. notes, due September 1, 1918, will be paid at their maturity on that date. There were originally $250,000,000 of these notes, which were sold in our market in 1916; but the outstanding issue has been reduced to about $180,000,000 by purchases in the market for redemption. French obligations have been one of the chief features of the advance. As will be seen from the above table, the French Republic 5½ per cents., due 1919, have risen 6 points from the low figures of the year. The 6 per cent. notes of the French cities, Paris, Lyons, Bordeaux, and Marseilles, with rises of about 10 points each, are conspicuous examples of the good effects following the checking of the German advance and the counter-offensive launched by the Allies and the American Army. No division of this part of the bond market has, however, shown such a marked improvement as the Russian external or dollar bonds, which though not listed at the Stock Exchange, are dealt in extensively on the New York Curb market'."
GERMAN PROPERTY IN AMERICA
Until the United States entered the war with Germany it had never been realized that an enormous share of the economic wealth of the country was under German control. Attorney-General Palmer, in an address at Detroit, estimated this share to be about two billion dollars in money value, with an economic and political value far greater: