New-York tribune., 1913-07-14
A Week of Important Events
and Disturbing Happenings.
THE PITTSBURGH FAILURE
The Currency Bills Faults
Growth of American Exports
in Manufactured Products.

trend of values
The principal happening of the week
was tie failure of the First-Second Ma
tional Bank of Pittsburgh, carrying with
II the American Water Works and Guar
antee Company and some minor institu-
tions in other places. SO far as the Pitts
burgh bank itself may be considered its
effect on other institutions In Pittsburgh
and among the banking interests of the
important cities will not be serious. as for
quite n period the information has been
general among the leading banks that the
First-Second National was under sus-
picion and might not be able to weather
the storm. Going further. however. and
looking at the matter as reflected through
the influence Of the American Water
Works and Guarantee Company, the re-
suit will be more pronounced, especially
on the unlisted securities market as this
was one Of the great public utility or
ganizations Of the country, and its re
ceivershp will create distrust in the
minds of those who nave been purchasing
public utilities on account of their yield
and underlying security coming under, AS
they do. the quasi municipal class. The
tendency will be 10 disturb confidence in
public organizations Of this character. and
this on top of the general distrUst which
has been created in the public mind re-
garding Wall Street and the securities
markets generally is regretta BILE. There
is another side to the question. which
will shed ray of light and allay some
apprehension. and that is not only will
extensions planned by holding companies
be checked. but in this restriction the
necessary protection will be afforded in
vestors who now are carrying large
line of gas, electric, street railway and
other loose stocks and bonds
During the week Paris renewed the i'm
portation of gold bars from this market,
and the prospect now is that further
Withdrawals will follow. The gold situa-
tion will be aggravated so long as the
Balkan war continues, as the tendency
to replenish gold reserves has been
shown by the French bankers, and at the
present time this is the only market open
on which France may draw. The news
during the week regarding the Balkan
situation was more disturbing than for
some time past. Instead OF a prospect
of peace, reports Of renewed mixing in
of Turkey and Rumania, in addition TO
Servia and Bulgaria. was indicated by the
dispatches, in consequence of which the
stock markets and the bourses Of Europe
sold off easily. The weekly return Of the
Bank of England, which showed COM
paratively small increase in gold hold
ings, emphasized the continental strain
of the London supply Of gold, as did the
weekly statement Of the Bank of France,
which displayed a loss in both gold and
silver holdings.
The Glass-Owen banking and reform
measure was conspicuous among the i'm
portant subjects under discussion through
out the week. In a measure so composite
there must be elements OF promise as
well as some that are subject TO criticism.
Banking Reform" in the following para
graph. sums up the proposed bill very in
telligbly.
IF the measure is to be regarded as a
foundation on which TO build a scientific
and practical banking system, it is a be-
ginning Of promise 1t contains much that
is excellent. II shows an understanding
Of the fundamentals Of banking as 2
science and an appreciation Of the needs
of the country. II attests the influence Of
the investigations and studies OF the sub
ject which have extended over a period OF
five years. In some of its provisions.
however, the meaning Of the trainers is
no clear. There are some crudities and
some vital defects"
The National City Bank Of New York
says that an interesting immediate con-
sideration in connection with the proposed
legislation, affecting every national bank,
is the probable effect OF the passage OF
the bill in it's present form on the price OF
government bonds. Possessing both the
circulation privilege and the available use
as security for government deposits. these
bonds have been for some time lowering
about par, with the market occasionally
showing an inclination TO go below that
point The market value OF the Is and
the 3s that are available for circulation
has also had strong sustaining factor In
the availability OF the bonds for circuld-
ton privileges, which the proposed meas
ure will remove. Should the law pass in
the form in which the bill was introduced
all government bonds now securing public
deposits would be released and no ma
tional bank could increase its issue Of cir
culation, and the circulation privilege
would subsequently entirely disappear.
During the interval some $685.. $50, 100 might
be expected to be refunded into IS and the
government debt would be placed on
purely investment basis, the same as that
of all other countries. No other country
can now borrow money for per cent,
and II would seem problematical whether
this government could maintain s6S5 600
per cents at par.
In the midst of so much fault1nding
with the affairs of the country and the
desire OF many people to change the
order of things and materially alter the
country economically it is well to note
the progress of American Industries In
their attempts TO compete with other
countries by branching further into the
various buying centres Of the world and
placing the trade marks of American
manufactures along with the products
Of Great Britain, Germany, France and
other export countries.
During the last fifteen years the
United States has made wonderful prog
ress i'm the sales of this country's manu-
featured products. While the products
Of the soil OF the United States have
been conspicuous in foreign. markets and
held the controlling balance in American
exports. there has been complete
change in the character of our foreign