Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-30
LOCAL FINANCIAL NEWS.

The buying Of some Of the bonds Of
the Washington Railway and Electric
Company at the meeting today of the
Stock Exchange served to give body to
what would have otherwise been rather
attenuated record of transactions. and
at the same time emphasized the con-
tinuation Of the conditions noted last
week Of a tendency toward investment
buying. and, in fact, an actual demand
Of considerable volume for securities OF
that character.
1t was also noted in the sales today
somewhat better prices were paid. and
as high as ia. was recorded In the
case Of some of the lots disposed OF.
The other securities on the list did not
attract much attention, but that has
been common enough in recent days, and
was not due to anything current, as far
as could be seen.
The fact that sag in the New York
market which began last week, contin-
ued did not seem to be much OF factor.
except of course, in the very general way
that the state Of the outside market bears
upon the local. According to one writer
on the subject. what has been going on
in Wall street for some days past is "a
bull swing in a bear market" and 1t Is ex-
pected that as the downward movement
of the pendulum in that swing has start
ed in. it will be followed by counter
movement.
The fact seems to be that the stock
market has recovered pretty we'll Sfrom
the recent panic. but the same thing can
not be said OF the commercial world. mat
appears to be a slower process. IL is
thought that substantial progress will not
be made in the security market until the
recovery in the business market Is more
pronounced.
rb. ,asea~. IN, tina Senate ~ The AID
rich bill to provide an emergency currency
is looked upon as a step In the legislative
course that will end in placing upon the
statute books some measure OF that sort
It Is not rega rded as anything more than
an emergency device to provide currency
that may be had in case of panic.
At the same time some amendments
that were attached to the bill before Its
signed to make changes Of Importance and
of a permanent character. The leading
thing of the kind is thought to be the pro-
vision which allow country banks or those
located outside of reserve cities and which
are obliged by the law to have reserves
amounting to Is per cent of the deposits,
hereafter to keep only per cent In the
banks in reserve cities instead Of 8 per
cent. However. one-third Of the amount
required Of this reserve to be kept in their
vaults may be invested In the securities
authorized ss the basis for the emergency
currency which in addition to government
bonds include those Of state, county and
city issues.
The reserves in the case Of banks in re-
serve cities must be kept In the vaults to
the extent of two-thirds Of the 25 per
cent of the deposits required from such
Institutions Under existing law such
banks are required to keep only one-half
Of their reserves in lawful money. These
changes are looked upon as being in line
with policy of preventing in the future
AS far as possible that concentration OF
the money of the banks of the country
in the banks in large cities which was
regarded during last fall as one Of the
weak places in our financial affairs. owing
to the draining from the city banks BY
the country banks Of cash at a time
when the city banks stood in the greatest
need Of money.