eign loan ever floated was that negotiated by England and France. Various small credits and gold imports of more than $150,000,000 had not prevented sterling exchange at New York from falling to about $4.50; normally it is $4.86, and in August, 1914, it had been nearly $5. In September, a commission of British and French financiers, including Baron Reading, Lord Chief Justice of England, as chairman, and noted English and French bankers and publicists, came to the United States to negotiate a loan through prominent American bankers. It was stated that their original desire was to establish a credit for $750,000,000 or even $1,000,000,000, but after various conferences led on the part of American financiers by J. P. Morgan and Company, the sum of $500,000,000 was fixed upon. An extensive underwriting syndicate was formed in which banks from all parts of the country participated, though some banks in various sections refused to join. Refusal was due in part to financial reasons and in part to sentiment. A vigorous effort was made by some of the leading German-Americans to prevent the participation of banks, especially savings banks, in the loan; and this was accompanied by proposals for the establishment of German-American banks in New York and Chicago. The American Truth Society formed by Germans in this country held meetings in 35 cities in opposition to the loan; it later issued a list of 56 banks taking part in the loan which were "not to be forgotten nor forgiven." The loan was taken by the syndicate at 96 or on a basis to yield an average 534 per cent and sold to investors at 98 or so as to yield for the 5-year period during which the securities run, about 52 per cent. The privilege of converting these securities into 42 per cent bonds running from 15 to 25 years was included. The subscription list was closed early in October, and a total was exceeded by some $50,000,000. The largest individual subscription was $35,000,000; there was one of $20,000,000; one of $15,000,000; and three of $10,000,000 each. The first installment of 25 per cent was due October 15; a second installment of 25 per cent was due November 15; and a final installment of 50 per cent was due December 15. The loan had momentous consequences in preventing the breakdown of European exchange. It thus made it possible for England and France to continue their purchases of war supplies in the United States, a condition which reacted powerfully upon the condition of American manufactures. FEDERAL REVENUE. The great decline in import duties which had made necessary emergency taxes in 1914 continued to be a cause of anxiety to treasury officials during 1915. It became evident early in the year that existing legislation would probably produce only barely sufficient revenue to carry the government's finances to the close of the calendar year. Moreover, when it became evident that the Administration was determined to enter upon a policy of greatly increased expenditures for the army and navy, it was perfectly certain that new sources of revenue would need to be devised. This additional revenue could be secured from an expansion of existing taxes or from new taxes, or from the sale of bonds. Either policy was evidently fraught with political dangers and economic difficulties. It was generally agreed that the income tax, which in the fiscal year 1915 yielded only $40,000,000, was capable of yielding a much larger return; also that a Federal inheritance tax was also likely to prove a fruitful source of revenue. Early in December Secretary of the Treasury McAdoo suggested that the emergency revenue law which would expire on December 31st be reenacted; that the law providing that sugar should be free of duty after May 1, 1916, be repealed; that the income tax rate be raised; that the exemption limit of the income tax be lowered from $4000 to $3000 for married men, and from $3000 to $2000 for single men; that the income surtax begin at $10,000 or $15,000 instead of $20,000; and that taxes be imposed on gasoline, crude or refined oil, and on automobiles and other internal combustion engines according to horse power. Members of Congress proposed taxes on the profits of the manufacture of munitions; or an increase of the taxes on whiskey and beer. Most of the proposals of Secretary McAdoo's programme above outlined were approved by the Administration. In December a caucus of House Democrats voted in favor of extending for one year the emergency tax law. On the 16th a joint resolution to this effect passed the House by a vote of 205 to 189, all Republicans and 5 Democrats voting in the negative. In the Senate the resolution carried by a vote of 45 to 29. The discussion of this proposal was largely partisan in character, and brought out the opposed policies of the two parties regarding the protective tariff. ENGLAND. The most conspicuous feature of English financial history of the year was the prodigious efforts of the government to finance the war. The direct cost of the war to Great Britain up to the close of 1915 was estimated at $8,000,000,000, of which some $6,500,000,000 represented the cost during 1915. This had been met for the most part by loans, but also in part by taxation. In addition to previous taxes, over $1,000,000,000 was raised by new taxes; and at the close of the year further taxes were in contemplation. The stock exchange at London, which had been closed in August, 1914, was reopened in January. The valuation of 387 representative British stocks by the Bankers' Magazine showed a decline in the aggregate market value of these stocks of $900,000,000 in the latter days of July, 1914; of nearly $350,000,000 more between August 1 and February 1; and of over $700,000,000 additional decline between Feb. 1 and Dec. 1, 1915. This shrinkage was striking evidence of the unfavorable condition of general industrial operations. The war necessitated a great shift of both labor and capital to new lines of production (see UNEMPLOYMENT). The foreign trade of England showed an excess of imports in each month of 1915 over the corresponding month of 1914, with the exception of January, in which the imports of the two years were practically the same. On the contrary, the exports were smaller in each month than in the preceding year. The total imports of the year exceeded $4,270,000,000, as compared with $3,500,000,000 in 1914. The total exports amounted to $1,925,000,000, as compared with $2,180,000,000 in 1914. The tremendous financial strength of Great Britain was revealed by the fact that she had extended credit to her allies in large amounts, had exported gold to the amount of $400,000,000, and yet in spite of a most unusual unfavorable trade balance, had suffered a loss of only $100,000,000 net in her gold holdings: this was owing largely to the inflow of gold from South Africa and Australia. se FRANCE. The war almost completely interrupted the foreign trade of France. It was estimated that from the beginning of the war, France had produced from her own agriculture and manufactures five-sixths of all her supplies. The Paris Bourse was reopened late in the year, and the curb market resumed partial activity. Also toward the end of the year the liquidation of accounts suspended since July, 1914, was resumed. From August, 1914, to November, 1915, the government paid out $5,200,000,000. Of this sum $1,000,000,000 was cured from regular taxes previously imposed; no new war taxes were enacted, though a revision of the income tax became effective Jan. 1, 1916. The bank of France had, up to Nov. 1, 1915, advanced $1,400,000,000 to the government. Moreover, this bank held gold slightly in excess of $1,000,000,000 at the close of the year, although it had sent $140,000,000 gold to England, $40,000,000 to the United States, and an equal amount to Italy and Greece; moreover, its gold reserve at the outbreak of the war was only $615,000,000. During the latter half of 1915 an especial effort was made by the government to accumulate the gold hordes of the French people, with the result that from July 1 to December 1, $250,000,000 in gold was sent in. Perhaps the most notable event of the year was the flotation of the "Loan of Victory" in the closing months. The total subscriptions to this were not known at the close of the year, but they approximated $2,900,000,000 from all classes of the population. Payments were made to a considerable amount in gold, and the amount paid in exceeded that due. GERMANY. In Germany the year brought no considerable changes in industry. The Boerse operated unofficially during the greater part of the year. Statistics as to foreign trade were lacking, though it was known that the overseas trade was almost eliminated. It was stated that the Boerse had reflected the prosperity of industries engaged in the manufacture of war supplies in that a real boom of war shares occurred during the summer, with excessive speculation. It was claimed that the prosperity of the country was evidenced by the increase of deposits in savings banks. At the outbreak of the war these banks held aggregate deposits of nearly $5,000,000,000. Up to June 3, 1915, the new deposits were estimated at $500,000,000; and it was estimated that the total increase in savings deposits from the outbreak of the war to the close of 1915 was $750,000,000. The most striking financial events were the war loans. Imports as The total area in square kilometers is equivalent to 144,249 square miles. The population was 33 per square kilometer in Nyland (greatest density), and 2 in Uleaborg (the least), and the average density for the country was 9. Evangelicals numbered 3,057,627, Greek Orthodox, 52,004, Baptists, 4467, Methodists, 676, Roman Catholics, 423. Speaking Finnish their native tongue were 2,565,742, Swedish 344,364, Russian 7339, German 1794, Lapp 1660, other tongues 298. Total population as estimated Jan. 1, 1913, 3,196,700; 1911, 3,154,824. Of the 2,712,562 adults listed as actively pursuing occupations, 1,555,357 were engaged in agriculture. Helsingfors had 161,091 inhabitants in 1912, Abo 52,057, Viborg 28,257, Tammerfors 46,192, Nikolaïstad 23,275, Björneborg 17,072, Uleaborg 21,271, Kuopio 16,266. Education is on a much higher plane than in Russia. Primary instruction is free and compulsory between the ages of 7 and 15. Secondary schools are well attended, and special schools of agriculture are maintained, devoting particular attention to stock raising and dairying. PRODUCTION AND COMMERCE. Cereal crops are grown; also roots and forage plants. The timber industry is important. Iron ore is mined, and pig and bar iron are produced for export. In 1912 the harvest yielded 42,283 hectolitres of wheat, 3,656,630 of rye, 1,795,000 of barley, 7,416,030 of oats, 6,630,110 of potatoes. Revenue from crown forests in 1913, 13,517,512 marks; expenditure, 3,283,960. The trade by countries of origin and destination, with values in thousands of marks (gold), is shown below for three years: wooden wares, fish, cotton textiles, iron. Vessels entered (1913), 11,901, of 3,696,330 tons; cleared, 11,937, of 3,628,905. Merchant marine (Jan. 1, 1913), 3547 vessels, of 408,660 tons (507 steamers, of 71,297). COMMUNICATIONS. Railways in operation Jan. 1, 1913, 3763 kilometers. At the beginning of 1914 the total mileage of the Finnish State Railways, including 207 miles of line owned by private capital, but operated by the state lines, was 2537. Finland has 2765 miles of navigable waterways, of which, with the existing facilities, it was estimated that the freight capacity is about 1,600,000 tons a year. The waterways, as well as the railways, are under the administration of the state. The Russian government has decreed that all new lines are to be constructed in conformity with Russian lines, that existing lines are to be so altered as to permit the use on them of Russian rolling stock. With the completion of the Kaskö-Kristinestad line will be begun extensions of present lines to form a continuous route from Nikolaïstad to Petrograd. The projected alterations and extensions were decided upon, not by the Diet of Finland, but by Russia; though the Finnish railways are for the most part owned by the Finnish government. FINANCE. The revenue for the year 1913 (figures are from an English source) amounted to £6,796,715 ordinary and £20,610 extraordinary (£22,050 from funds); of which £3,004,905 was derived from state domains and forests, railways, canals, etc.; £2,709,666 from indirect taxes (customs and excise), £244,850 from direct taxes, etc. Expenditure, £5,953,867 ordinary and £956,442 extraordinary (£22,281 for funds); of which £1,917,015 for communications, £785,411 for worship and instruction, £574,122 for civil administration, £531,882 military contribution, £301,019 debt charge, £292,864 for agriculture, etc., £281,156 for commerce and industry, etc. The military contribution goes into the Russian treasury. The debt stood Jan. 1, 1914, at £6,485,352. GOVERNMENT. Until the present régime Finland enjoyed the autonomy guaranteed her in the reign of Alexander I. Latterly the Russification system has been applied to an increas. ing number of departments, until the schools, the press, the law, and the legislature have all been invaded. By the end of 1912 the constitution was virtually annulled. The Diet (200 members) elected by universal suffrage for three years, formerly possessed of large powers in civil administration, has latterly been little more than a figurehead. The Russian sovereign is the grand duke. There is a resident governor-general, and a secretary of state residing at Petrograd. FINLAY, CHARLES JOHN. Cuban scientist and biologist, died Aug. 20, 1915. He was born in Cuba in 1833, and received his education in France, and at the Jefferson Medical College, Philadelphia, from which he graduated in 1855. He took up practice in Cuba, and in 1881 made the discovery that the mosquito was a disease spreader. This theory was at first received with ridicule, but Dr. Finlay continued his experiments, and in the last-named year his theory was established by tests in the transmission, through the bites of mosquitoes, of yellow fever. Five years later his discovery received atten tion from medical journals, and gradually came to be accepted. In 1899 the United States Army Commission proved the correctness of the theory through the work of Major Reed, Dr. Lazear, and their associates. These men took Dr. Finlay's data as a basis for their investigation. Dr. Finlay was chief sanitary officer of Cuba from 1902-08. He belonged to many medical associations in Cuba, and in other countries. FIRE INSURANCE. See INSURANCE. FIRE PREVENTION. See FIRE PROTECTION. FIRE PROTECTION. Increased attention was being paid to methods of fire prevention as distinct from fire fighting in many fire departments throughout the United States during 1915. This involved more inspection by members of the uniformed force, the formulation and enforcement of new regulations, and the arousing of public sentiment to realize disadvantageous conditions where they existed. This side of the matter had been too much neglected in American fire departments in the past, and it was to be hoped that fire department efficiency would be regarded on the basis of the small number of fires rather than on the number of fires occurring and extinguished with small loss. But the movement was not confined exclusively to fire departments. Better statutes were being passed to afford increased protection and to punish neglect and carelessness; better building construction was being secured through improved building codes and otherwise (see BUILDING OPERATIONS), and in general a more enlightened public sentiment was supporting legislators and officials in their plain duties, not to mention increased attention to proper fire protection by factory owners as well as individuals in their homes and other buildings. LIABILITY FOR FIRES. An interesting and noteworthy development in American fire protection is the assessing of damages due to fire on the owner of premises where a fire originates through neglect, carelessness, or violation of rules and regulations. A law, signed by Governor Brumbaugh of Pennsylvania on May 6th, applied this principle to cities of the second class in that State. The essence of the law was as follows: Where a fire originates on the premises occupied by any person, firm, or corporation as a result of his or its criminal intent, design, or wilful negligence, or where said person, firm, or corporation has failed to comply with any law or ordinance made for the prevention of fire or the spreading thereof, such person, firm, or corporation shall be liable in a civil action to the city for the payment of all costs and expenses of the fire departments incurred in the extinguishment of or any attempt to extinguish any fire originating as aforesaid. The amount of such costs and expenses shall be based upon the wages of the firemen and other officers for the time they were engaged, a reasonable amount as rental for the use of the apparatus and the cost of the water and other materials used, with an additional amount of 10 per cent on the total amount as overhead charges. In 1915 there was a general improvement to be noted in fire-fighting facilities due largely to the general acquisition of motor apparatus; and in part, as a result, the number of fires During the 39 years ended 1915 the fire losses for the United States and Canada had attained the stupendous total of $6,049,817,225, or an average annual loss of $155,122,518. The following tabulation shows the losses by years and emphasizes the improved record for 1915: FIRE LOSSES DURING PAST THIRTY-NINE quenched soon after their incipiency was in- 1914. 1913. 1912. 1911. 1910. 1909 1908. 1907. 1906. 1905. In New York City in 1915 there were 1004 fewer fires than in 1914, with a reduction also in the average loss. This was due to the various 1902. fire prevention methods which had been enforced by the Fire Department, including better housekeeping, better construction, better fireproofing of shafts and stairways and other openings, better inspection, and increased supervision by fire department officials. The work in fire prevention was securing results, and it was believed that the city was in better shape to resist fire than ever previously. AMERICAN FIRE LOSSES IN 1915. The losses by fire in the United States and Canada during 1915, as recorded by The Journal of Commerce and Commercial Bulletin (New York), aggregated $182,836,200, or a decrease of $52,755,100 from the figures of the year 1914, which were $235,591,350. The fire loss record for 1915 was the smallest since 1905, when the figures recorded were $175,193,800. This decrease of fire losses was considered a most encouraging sign and seemed to show that the various campaigns for fire prevention and protection had not been without results. There were no serious conflagrations during the year, and while some 28 fires resulted in an estimated property damage of $500,000 or over, only one amounted to more than $2,000,000. The fires of $500,000 or over during the year were the following: 110,319,650 115,655,500 Total for thirty-nine years....... $6,049,817,225 During the year the engineers of the National Board of Fire Underwriters worked out a proposed scheme of relative values for fire defenses and physical conditions of the various towns and cities. This scheme was adopted tentatively by the Actuarial Bureau with the consent and approval of the Executive Committee of the National Board, and was of interest as showing the various factors to be considered in reaching an estimate of the facilities for resisting fire possessed by a community. The table is based on a maximum of 5000 points, and the relative values are as follows: Relative Values (Maximum 5,000) Water supply Fire alarm Building laws Explosives and inflammables Natural and structural conditions 1,700 1,400 550 50 200 200 150 750 5,000 Working on the above scheme it was proposed to classify the various towns and cities according to their merit. The first class would be cities and towns where the deficiency from the above maximum did not exceed 500 points; second, 500 to 1000; third, 1001 to 1500; fourth, 1501 to 2000; fifth, 2001 to 2500; sixth, 2501 to 3000; seventh, 3001 to 3500; eighth, 3501 to 4000; ninth, 4001 to 4500; and the tenth representing a deficiency of 4501 to a condition without fire protection at all. The scheme worked up in detail, and the various elements of apparatus, water distribution systems, etc., were all considered. was During the year there was an extension of high pressure systems, and of this form of protection. This subject was taken up in a paper on "Fire Protection" read at the International Engineering Congress by John R. Freeman, and in the discussion it was stated that high pressure systems are only available where there 1,100,000 is a large and properly trained department. 1,000,000 Nevertheless, the construction and extension of 500,000 1,000,000 1,000,000 2,000,000 such systems were in progress, and Cincinnati, Ohio, was installing for a congested area dis- During the year a number of serious fires oc- treme speed with which work was being done, the Up to November, 1915, 153 school fires were A serious fire during the year was that at the There were, as usual, a number of fires during ex- STATISTICS OF FIRES. The National Board of 298 300 298 Number of Cities Reporting Loss United States Argentina Population 1912 1913 Per Capita Loss 1914 1911 1912 1913 1914 1911 1912 1913 1914 1911 3 3,518,493 4,425,696 3,945,743 3.58 4.21 1,428,042 1,428,042 166,445 7,164,849 168,812 2,659,575 2,559,608 Ireland 2 2 694,272 699,808 45,000 ... |