The Washington herald., 1913-12-24
FINANCES HERE
in GOOD SHAPE
Review Of Year Just Ending
Shows the Conditions IN
Washington Firm.
NO DIVIDENDS REDUCED
Slight Depression in Prices, with a
Decrease in the Volume Of
Business, However.
NO DIVIDENDS REDUCED

n EeEleW OF the year l5lo IN tno iOCdL
financial market shows that conditions in
Washington are far better than in most
Of the other markets of the country.
There have been losses but few cities
have suffered less than the Nations Cap
ital by reason Of a country-wide-in fact,
orld-wide-depression.
Depreciation in principal Is never In
spring. but II is some comfort IN the
hour OF depression If the income there
from Is unimpaired. Reduced dividends
receiverships, and stock assessments
lead TO insolvency, but there need be no
loss Of principal until the securities actu-
ally are sold Hence forced selling en-
tails permanent losses, and patient hold
ing often results in substantial net gains.
In the local market there has been a
depression in prices and a decrease In the
volume OF business, In no instance. how
ever, has any listed security passed or
reduced Its dividend, and for this achieve
ment Washington is deserving Of con-
spicuous and unique distinction. In sew
eral instances increased dividends actu-
ally have been earned, and it speaks well
for the poise of the local market that
no wild speculation has been built upon
these isolated evidences of prosperity.
There has been no forced liquidation of
consequence, and, fortunately, perhaps.
since the market has been too shallow for
the unloading OF securities in bulk.
No Extreme Punctuation.
Less than five quotation lots of one
issue resulted in an extreme decline of
sn per share, and one million bonds (the
total OF two distinct issues) had an ex-
treme fluctuation Of five points. The buy
ing has been reluctant frequently, but
never wholly absent Whatever of ag-
gressiveness there has been originated
with the seller. The reasons for this are
the outcome of business uncertainty and
the general knowledge that the country
was marking time in its material affairs.
Yet for the most part the causes for de-
preston come from the outside and not
from within the local community.
The banks have loaned money with pru-
dence, and no deserving application has
been rejected. The rate for money never
has been beyond its value and has aver
aged under that OF other communities
Approximately 10000 shares of public
utility securities have been bought and
sold, and the extreme declines varied
from s 3-4 points in Washington Railway
preferred 10 Il points in c. pitaI Traction
on almost identically the same number
of shares. Washington Gas, with a vol
ume OF business almost equal to the COM
tined total Of all other utility shares, is
a SndO6 over Two pOlnlS CHedpeT lndn at
the beginning of 1913
The advent Of a Utilities board, within
the period OF the foregoing comparisons,
is to be considered. for new methods of
accounting and new percentages for
are among the possibilities.
Whatever the exacticus may be. however,
there is no serious doubt of the ability
and willingness OF the properties con-
cerned to meet them in all frankness.
have been kept well in advance
Of dividend requirements, but the items
Of depreciation and upkeep are increas-
ing to an extent that emphasizes the
very scant provision which remains TO
of this class for capitalizing
and improvements Local fin
anciers say without dissent that il is es-
sential that some means speedily be
found, which, meeting the approval OF
the authorities, will permit of that in
creasing state of efficiency which the
rrodern utility patron demands as a mat
ter of right
Few Bonds UnIssued.
Only few, in fact. very few, bonds
remain unissued in the treasures Of the
several companies, and new legislation
would have to follow hard upon any
which demanded extraordi-
nary expenditures.
The year 1914 undoubtedly wtff-be de-
voted to a solution of this problem and
the future of the local issues depends
largely upon the extent OF the wisdom
end prudence displayed in the perfection
Of a comprehensive plan. There is room
for economy in operation and for a more
personal and intimate application OF man.
agerial ability, but these needs easily
may be remedied.
The activity in the bank and trust COM
pany shares in Washington reflects a
striking peculiarity OF the local market.
Some 400 shares of stock in this de-
partment have changed hands during the
year 1913 and for no reason in any way
to changes in dividends or
with perhaps a single ex-
ception.
Bank stock Popular Investment.
This form of investment, even though
carrying the double liability of the stock
holder. is more popular in Washington
than almost any other city in the coun-
try. Frequently an investor will buy the
shares Of one bank and pay for them
with deposit carried in a neighboring
in which he has no stockholdfng.
There are many explanations offered. but
the real explanation probably is that for
no other form of investment
has given more satisfactory results to
The buyer. In this department the de-
,lines have run to twenty-three points in
The more active issues, and the years
tota lsales vary from one share of Lin
coln National to about 1.100 shares OF
National
Washington has felt business depres-
sion mere in the reduced volume of busi-
ness than in the extent of the declines.
The depression emphasizes the fact that
he restricted local list has resulted in
higher prices for the few favorite issues
han would be likely in a broader and
more diversified market. Sentiment Is
powerful influence locally and the sta |
,ility of prices is a splendid and deserv-
ng compliment to the integrity and wis
iom OF the men responsible for the Cap |
tails major enterprises.