Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-06-03

While the general market maintains an
upward course and a decided recovery
has been made from the setback OF
few days ago. the local market continues
to be without feature except an almost
entire absence Of activity. There seems
to be no disposition to do anything
whether to buy or 10 sell-and the record
made at the daily meeting of the ex'
change Is without any particular sisntf1-
canoe.
Today was no exception to the rule and
the call was attended with but few indi-
cations of interest on the part OF the
brokers' Now that the currency legisla-
ton uncert ainty no longer exists the ex-
PLANTATION of the dizziness in the market
is largely based on the outcome OF the
presidential contest. 1t appears to the
minds of some market observers as II
that was TO continue as cause OF dis
turbance until after the nominations
have been made and the campaign Is we'll
under way.
The local situation in financial way
continues to present strong features. ana
1t is acknowledged that the banks and
trust companies are we'll supplied with
cash. IT has even come to be cause
OF criticism on the part OF some that the
reserves are SO great and it is said that
the policy of keeping in the vaults such
a large proportion OF cash is result OF
too great caution.
Such a condition in looked upon. how
ever, as favorable for an abundance of
money at low rates when a more active
policy Is adopted. At present invest
ment buying continues to be the basis of
what business is done.
The market for bonds continues active
and there Is much theOrzng as TO what
course the gas company will pursue il
regard to the per cent certificates
which the first of the present month be-
came subject TO redemption at the option
of the company. 1t IL now thought the
holders will be given an opportunity to
exchange their certificates for new issue
Of the per cent bonds of the company.
The extent to which the bonds and notes
of railroad and industrial corporations
have been absorbed during the present
year throughout the country. Is regarded
as an indication of the establishment of
confidence. During the months Of April
and May the total Of such securities
placed is estimated to exceed SILT .O00.MH'
and including those sold from the begin
ming of the current year to April ] the
grand total Is about $500, ON,OOO
1t Is noted also that during the past
two months the long tenn bonds have ex-
ceeded in quantity the short term notes
EcNeISHS III SIdt TcSpcCl tlIc COHuliUu
prior to April 1.
In one respect at least the provision
made In the emergency currency bill for
the total amount that may be issued
seems to be ample. II a Judgment of the
needs of such condition of business
known as panic can be based upon what
was done during the panic of 1907. Ac-
cording to the figures compiled recently.
It appears that the maximum amount of
clearing house certificates issued in this
country by the clearing houses during the
panic of 1907 was $219.S57.O 900. This Is
not quite half of the amount Of currency
that the new law authorizes to be issued.
but 1t would seem to be sufiicient to sup
ply any money famine that would be like
ly to occur in the next four or five years,
for which period this measure is limited.
But the fact is the knowledge that a
supply of money can be had will in it.
self. 1t Is thought, be one strong reason
why an emergency currency will not be
called for. During the panic of last year
there Is no question but that the situa-
ton was aggravated by the fears OF men
Of what possibly might happen, and it was
on that account that bank deposits dwin-
died and safe deposit boxes began to
bulge out.