The Washington herald., 1913-06-17
firm Opening;
Lower CLOSING
No Announcement on Union
Pacific Matters-Rate De-
cisions Responsible.
CURRENCY LEGISLATION
President Confers with Bankers-What
Is Needed-Local Stocks Steady.
Another Million.
CURRENCY LEGISLATION
by j. A. FLEMING.

buying, and the shorts showed nervous
ness. But there were weak spots. Union
Pacific, Southern Pacific, and the Hill
shares did not act well. and after q
time the list began to wabble, the bears
taking this as I signal for renewed pres
sure.
Justice Hughes delivered the opinion in
twenty-five additional rate cases, and,
as might have been expected, the court
sustained the ruling in the Minnesota
rate case and overruled the lower courts
generally, holding in only three minor
instances that rates were confiscatory.
The State was authorized to make appli-
cation to the lower court at such time
as rates were made compromising to
check further advances.
The Attorney General made the state
ment that he had nothing to say regard
ing the Union Pacific-Southern Pacific
case, and as the Supreme Court Mas now
these stocks showed especial
weakness. Moreover, they gradually
weakened the list, and when the rate
decisions came down-though Just why
they should have any influence is a
low prices of the day were
made. and from these there was but
slight recovery.
Bears Put on Pressure.
Bears and sold-out bulls who bought
speculatively during the last few days,
other than odd-lot investment buyers.
put pressure on the market They sold
Union Pacific off 81. points, Southern Pa
cihc IL. Reading rs. Steel IA, Copper
IL Smelter, IL. Canadian Pacific )
points, and the list generally lal% points.
There were a few exceptions, but not
many. Kansas City Southern rose q
Denver rose Ia; Great Western was
slightly better, and Chicago and North
western was strong. while some few
rails held their own. Wisconsin Central
surprised the street with more than 4
points net gain-a minor stock the leader
in strength.
Some industrials made a good show in
the midst of weakness. Sloss-Sheff
rose l L. points, American Tobacco was
firm, Car Foundry acted well, but, as
a rule, they were weak.
Petroleum shares were soft. Mexican
Petroleum dropped from 81 Is to SIS Il
and California Petroleum lost 43-i
points. Most Of the industrials were
from 1-2 to 11-2 and points of.
Grains Advance.
The decline in stocks was accumulated
by the sharp rise in the prices of grains.
wheat advancing IA. corn. 1-2, and oats.
IS. This was due to the reports of
the drought in the West and South
west. Anything that affects the crop
outlook is unfortunate for the stock
list.
This market needs the bumperest kind
of crop in order TO get 1t out of the
rut; this and recovery in business.
Currency Legislation.
In his conference with the newspaper
men yesterday the President indicated
that he wanted it understood that he
did not assume to know all about cur
rency or was himself alone making up
a bill. He has been simply going over
the work of others There are no longer
any great variations of views on financial
principles of the measure. No stock is
taken by the President in the reports
OF the lack of harmony among Demo-
Gratis. Some have said they did not
want to take up currency this session,
but that does not mean a lack OF har-
mony on currency itself. The first draft
of the bill is ready, but cannot say just
when the bill will be introduced or the
message sent to the House.
The President is still very hopeful of
action this session.
Demands are coming from all quarters
for an early passage of the tariff and
currency bills. The currency plans are
in such-shape that an agreement prob
ably will be reached as to the final draft
in the next twenty-four or forty-eight
hours.
What Is Needed. =
William C. Cornwall, of ]. s. Bache &
Co, New York, in an address before
the New Haven Chamber of Commerce
on THE Importance of a Sound Bank
ing Bill" said in mart.
ANY sound system to meet modern
requirements must do three things:
q. 1t must concentrate the gold re-
serves.
- 1t must make it possible 10 con-
vert sound commercial banking assets
into cash.
So It must furnish an elastic cur
rency.
"Our present system scatters the re-
serves throughout 5000 banks. It per-
mits commercial assets to lie useless In
5000 bank vaults because there is no
place to turn them into cash.
1T furnishes a currency, which, in
stead of increasing in volume when il is
needed for business purposes and dying
out when the need is over, does just the
opposite: is rigid and irreducible in
amount, constantly grows larger without
the slightest regard to business wants,
ana would drive, out all the gold In the
country If We were not such an over
whelmingly rich-producing country.
with no great central controlling sys-
tenn. we have no way OF bringing gold
into the country, when we most need il,
or of preventing its outflow when we
cannot spare it. France, for instance
takes our gold, as shown by the recent
at time when exchange is
against such an operation and reserves
are low, and we are helpless to stop it.
Our supply is at the mercy of the
world"
Local Securities.
All things considered. there was a
fairly good volume of trading on the
local exchange: not large, but as good
as might have been expected, consider
ing practical midsummer and a general
disposition to do as little as possible
Washington Gas was the leader sew
enty-five shares changing hands at So
for the average price
Capital Traction was a good second,
with fifty shares sold, all at 11s1k. ex-
dividend.
Railway common opened at IS and sold
sparingly TO S5Z. the preferred selling
TO the extent of three shares at 81,
though the best bid was STA Saturdays
close.