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Monthly Dividendsand MonthlyEarning StatementsThe monthly dividends paid toPreferred Stockholders of CitiesService Company provide a convenientand regular income safeguardedby earningsFive Times OverPreferredStock Dividend RequirementsThe statements of earnings mailedto stockholders monthly enableinvestors to keep in constanttouch with the financial progressof the Company.Send for Preferred Slock CircularHenry L. Doherty& Company60 Wall Street, New YorkZ)~3We Own and OfferMunicipalBondsrepresenting 29 different States.Ourlist of municipal bonds isalways large and diversified,and we are therefore in a positionto meet the requirementsof all municipal bond buyers.A. B. Leach & Co., Inc.Investment Securities62 Cedar St., New York105 S. La Salle St., ChicagoPhiladelphia Boston Buffalo MinneapolisBaltimore Pittsburgh Cleveland MilwaukeeFinancial Situation, continued from page 66such securities on the other European markets'during the two or three weeks before the war'began. The estimates just quoted are open tomuch doubt; the experience of this war, in thecase of other nations, has indicated the tendencyof all such calculations to exaggerate the facts.But the financiers on the Allied "ReparationsCommission" which drew up the terms of paymentrelied undoubtedly on such holdings as animportant factor in the operation.HE means employed to meet the 5 per centinterest and 1 per cent annual sinking-fundrequirement on the German bonds delivered fora balance of 80,000,000,000 marks (which, after1026, would involve payment by Germany to theAllies of approximately $1,000,000,-000 every year) would necessarily bedifferent. Payment in services renderedin the Allied countries by individualsor corporations using GermanMachineryof theGreatSettlementcapital will be mostly precluded, at least for yearsto come, by Germany's surrender of her shipping,:by the loss of plant and clientage through whichher banking concerns, her insurance agencies andher manufacturing enterprises used to operate inthe Allied countries, and, not least, by the possi-ibility that German operations in some of thosecountries may for some time be forbidden.For future interest and sinking-fund paymentagainst the immense indemnity bond issues, there;would apparently remain only export of German:products to her former enemies—with what pre-:cise economic results, it would remain to be determined.Even so, the problem would exist forthe Allied governments of arranging to compen-;sate at once the citizens whose property the Ger-imans had destroyed, when the governments had:received payment in long-term German bonds.:Clearly, that compensation would necessitate the:raising of equally large loans by the governments:themselves, based to all practical intents on the;German obligations. Here, then, not in Germanyalone but in the Allied markets is the pros-;pect of public borrowings at a comparatively;early date almost as large as those of war-time.This would occur at a moment when the need ofcapital for Europe's resumption of industrial activitywould be urgent, yet when the war hadleft the Continental belligerents in a state offinancial hardship if not of financial exhaustion.How is this stupendous problem to be solved?In the nature of things, even the attempt atits solution was bound to be deferred until thepeace. So long as the slightest chance remainedfor resumption and continuance of a state of war,the machinery of financing Europe's peace-timeactivities could not be set at work. With peacearranged, however, the task will become peremptoryand immediate, and no intelligent financierentertains any doubt that it will fall primarilyto the lot of the United States. Experiencedbankers were busy studying out the problem at :the moment when the general public was looking,Financial Situation, continued on page 7068