The Washington herald., 1913-03-19
STOCK MARKET
AGAIN Lower
Bears Continue Rampant Sell
ers, but Holidays May
Help Situation.
STATES CONTROL BANKS
Comptroller Murray's Address
Trading, but Good Strength
in Local Stocks.
BY /. A. FLEMING.

BY 1. A. FLEMING.
Wall Street is not holding its own. save
in spots and these are becoming less
and less numerous day after day.
Because of the fact that the short
line is something to conjure with on
favorable development. and for the
further reason that few shorts will care
to take the chances of Friday, Saturday
and Sunday passing without producing
the specific development. it would seem
within the possibilities that there would
be 4 recovery in values between this
morning and the close of the exchange
tomorrow afternoon
But this three days vacation, from
Thursday afternoon until Monday morn
ing. is about the only hope of the holders
of securities in recovery. The liquida-
ton has kept up at a distressing pace
the only gleam of satisfaction yesterday
being in the latest strength of num-
Der of rails, which refused TO yield more
than a small fraction and other rails
and industrials that stood up to the rack
for less than points loss.
This, too. i'm the face of serious de-
clines in Mexican Petroleum, Lead.
Loose-Wiles, and a few less important
specislties.
Full of Gloom.
Wall Street is fun of gloom at this
time. The failure of the Union Pacific
Railway Company to meet the emergency
by reason of the dissolution order on
the Southern Pacific merger is one big
factor; Europe is still disturbed, Ger
many and France are after gold. The
-ailroads of the country have been ad-
vancing wages to employees. while the
Interstate Commerce Commission has
given them small succor in their at
Of ting hV higher rates
IN freight.
Tariff revision is at hand mad while the
chances are that it will not be as
drastic many expect. it will be suf-
ficient to reduce production until settled
business affairs generally are satisfac-
tory. The great Steel Corporation may
show a shinkage IN orders. but its plants
are still working steadily at production.
The story of business from all sections Is
'nly hampered by the fear of reductions
II tariff. not so much the fear as the
knowledge that cuts will be made, but
low deep?
Collections are good. Money in the
great centers of the world is close, but
here Is no StrinSency in the minor mar
[CtS.
Just row all things are against the
stock market. The big men have their
,robIcms: the big corporations have
heirs. and yet speculation has been all
al the side of the traders who sell what
hey have not. and one Of these days
hey will have 10 pay the score.
Must Meet Conditions.
If corporations must do business Of
.inercnt plans Il railroads must cut div
dcnds to met the excess operating.
hen these changes have been partially
discounted by the heavy recessions in
.alues. There is always the assurance
hat tn" Iublc iS not in stocks. that If
Tie big men hold on there can be no
leavy liquidation and nothing approach
ng a panic.
Thlt prices are low is admitted. but
hey have been lower in non-panic years.
The increased capitalization and in
iebtedness of many rails in the last few
Years have warranted material recess
ions.
..TryinE 10 Get Results"
This is the title of a pamphlet just on
the press. containing the address on
the same subject delivered before the
Pittsburg Chapter of the American In
stitute of Banking by Hon. Lawrence o.
Murray. Comptroller of the Currency.
The Comptroller called attention in his
address to his efforts to secure safe
guards around the banking system, bet
.er and more thorough investigation and
new regulations made for the purpose of
protecting to the limit the rights of
iepostors and other creditors of banks
voluntarily retiring from the system
Above all. insisted, day in and day out,
upon a most rigid. painstaking and COM
prehensive examination of national banks
that il is possible to obtain under the
present law through the agency of
high-minded. courageous and able body
of national bank examiners.
Comptroller Murray calls attention TO
the fact that the national bank act does
not give him as much actual power as
MANY OF the State laws do TO the state
superintendents of banking.
I'm three States the law requires that
the bylaws OF a bank shall be approved
by the head of the banking department.
[ 'nder the law of Massachusetts the
amount of money to be invested in a
banking house is made dependent upon
the approval of the bank commissioner.
BY the laws of eight States the head Of
the State banking department is author
lied to remove the banks officers, the
statutes giving this right either on ac-
count of the recklessness. dishonesty or
of the officers or employees |
or for due cause or because. in the
opinion of the State banking authority, |
the officer of employe has abused his |
trust, or Deen neSlSenl III lne PERFORM |
ance of his duty Seven of the States |
give the State banking department au-
thority to prescribe and approve all |
books and accounts of banks.
MANY other powers not covered by |
the bank act are given to the various |
State banking departments. For in |
stance. the right TO order the removal |
Of one of two banks transacting busi- |
ness in the same building. and in close |
proximity: the right to pass upon and to |
compel the bank to call in loans to !
directors not approved by the State |
the power to require |
bank to pay off borrowed money: the ap- |
proval of salaries of officers and trustees |
of savings banks; the extension of the |
period during which real estate |
may be held; the approval of consolida- |
ions; the right to prescribe the maxi J
mum rate of interest paid to depositors:
the calling of a stockholders meeting; !
the reduction of overdrafts: the right to |
determine the value of a banks invest
ments and to compel it to charge down |
Investments to the value fixed by the |
State authority: to revoke the license |
a authorizing a bank to operate in the |
State; to require every hank to select |
A competent, person, approved by the |
to supervise and check |
Dff the balances of pass books
Has Initial Authority.
But the Comptroller has the primary
say in granting charters judged from
his statement.
.sSinca I have been CorpfrolIer ahout