The Washington herald., 1913-04-07
CROPS DISCOUNT
WILSON'S VIEWS
Improvement m Farming Dis-
tricts Expected to Counter
act Furry Due to Tariff. !.
ALL EYESON THE CAPITOL,
Week Likely to See Settlensat sf
Doubts in Minds Of Finaneiers IS
and Traders.
ALL EYES ON THE CAPITOL

|. New York, April 6.-This is the big
week in Washington and worry week in
Wall Street again. Congress and the
Supreme Court assemble tomorrow, and
both are liable to take; action affecting
security values materially From the
Supreme Court the Minnesota rate cases
are looked for. Congress will furnish
the occasion for publishing President
Wilson'S official views on tariff and
financial reform, and the proposed tariff
schedules may be published in day
OF So. ~
While developments in Washington
may be somewhat disconcerting to the
security market, the Improvement of the
| crop situation in America and the col
| lapse of the war movement in Europe
fully -counteract anything that may hap
pen in Congress or the, Supreme Court.
The great restraining influence in the
last few months has been, the tight
money rates, due to the wastesof capi-
tai i'm war and to the boarding of gold
by the frightened peasants of Europe
and by bargain hunters in the market,
Money is already coming out of hiding
i'm Europe, and in America ii is coming
to Wall Street. t
Easier Rates Expected.
Europe sold American stocks freely and
no further danger to the security is
to be looked for in that direction. In
fact London is heavily short of Ameri-
cans and the only activity possible in
the foreign markets for Americans must
be or the buying side Berlin has had
a financial house cleaning and specula-
ton has been checked all over Europe,
both in business and in securities. Spec
uation is rampan. in America in bust
ness, but in the steel market.it is dead.
There are millions of accommodation
notes in TIE banks that must be lidui-
dated, but the general conditions are so
much improved it is quite possible these
will all be liquidated without serious
inconvenience to. the money market.
Easier rates must be expected from now
on, with a continued growth of conf
dence on the part of the public in re-
gard to the stock market. .... ~ III
Now that the general conditions have
changed, il is worth while to consider
individual stocks. There are a few weak
ones even yet Among these Chesapeake
and Ohio is conspicuous. The stock Is
on a dividend basis-that cannot be justi-
fled by its earnings, although at the
time the dividend was declared the earn
iBgs seemed to be sufficient, 1t very
soon developed, however, that these
large earnings were there as a result
of neglect of maintenance. The number
OF dollars expended on maintenance In
any one year is not Of Importance. The
thing to watch is the condition. of, the
road as result of those expenditures,
and it has been evident the last two
years that Chesapeake and Ohio's physi-
cal condition was being made to suffer
for the benefit of the dividends. The
stock has had material decline, and
perhaps has discounted a reduction or
der passing for dividend.
RumcIy in Weak Condition.
Rumely is another stock in a weak
large earnings, it has not collected the
money The nature of its business
makes it necessary for the Rumely COM
pany to sell on long time, and it needs
double the working capital that almost
any other concern would need to. do the
same volume of business. Rumely's
therefore. are OF a technical
character and investors who will buy |
it on the sharp decline 1t is liable to |
have and who will hold the stock for |
a long period are certain to- make |
money.
Copper stocks. even aftef their. recent
advance, are cheap, because coppers were
In a bad condition as the result of the for |
eign war, which is now practically set
tied. Heavy exports of metal have been |
made to Europe the last few days, but |
this metal has not all been sold. 1t il 1
being sent to Europe in anticipation of a |
demand so heavy that il could not be /
supplied unless large surplus were there /
in advance. The actual demand is grow
ing rapidly, as proved by the advance in
price of the metal and there is every trade |