New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-09
REVIEW AND DIGEST
Early Part of Week Witnesses
New Low leveIS-PoIitiCS
and Money at Home
and Abroad.

operations during last week, and dis
PEELED some optimism that had been
garnered by the hopeful bulls during
the previous week, when predictions
had been made in some quarters that
stock prices were dragging along their
lowest levels and were due for an up
ward move. There was reason on
Monday for a slight show of confidence
in an early arrival of improvement,
owing to the more favorable foreign
war news and the gradual strengthen
ing of local bank reserves, with con-
tinued easy tone in call money rates.
The strain which for several months
had been put upon investors who have
TO turn seemed to have reached limit
and on Wednesday in the volume of
liquidation, involving nearly eight hun
dred thousand shares, and the largest
days business, with one exception,
since the beginning of the year. offer
ings were made by holders of securities
in the West and South who had previ
ously refrained from disposng of their
security possessions, and new low
prices for several stocks were recorded.
The situation was further aggravated
by calling for additional margins
among the commission houses. which
resulted in throwing over securities
which had been held by customers in a
vain hope that the market would re-
cover and that they could get out, if
not with a profit, at least without a
loss. SO far as the happenings Of the
period were concerned, really there
was nothing unusual to warrant the
sudden sharp break, and it was at
tributabe to the weakened condition
due to a long strain put upon the stock
market by politics and money, from
which there seemed TO be no immedi-
ate relief. a better tone was exhibited
on Friday and Saturday and prices
made some recoveries. That the coun
try is in for a continued period Of
hardening money rates must be &C
knowledged, and in that respect par
ticularly the future does not present a
rosy picture. In the line Of politics,
affairs at Washington seemed TO gather
force Of an adverse nature. and last
week remarks Of the Attorney General
regarding the policy of the administra-
tion toward corporations were con-
strued unfavorably. and hope was dis
PEELED regarding the probable clearing
up Of affairs during the present admin
istratiOn. II matters not whether the
attitude Of the Attorney General be
justified, the effect on the public mind
toward investments is disquieting, and
It is unfortunate that the trend is
toward iconoclastic rather than con-
structive policies.
Treasury to relieve the money situa-
ton by the distribution of Treasury
funds among the national banks Of the
country has met with a mixed senti-
mental reception. Commenting on the
view taken by the Secretary, the Ma
tional City Bank Of New York says
that on the day following the Secre-
tarys announcement Of his intention
10 distribute 100000 among the
banks he issued a public statement to
the effect that if the national bank de-
positaries Of the government had been
required during the last sixteen years.
from 1896, to pay interest on their av-
erage balances at the rate Of per cen;
per anTmm, the net revenue to the gov
ernmeLs would have been increased
during this period by the sum Of $50
61O,3S1; but the Secretary called atten-
tion to the fact that no interest was
paid by the banks on any government
funds until its collection was author
lied by the passage Of the Aldrich-
Nreeland act Of May 80, 1908, some
times known as the emergency cur
rency law. Whatever saving, however
might have been made TO the govern
ment by the collection OF interest dur
ing the period above mentioned is fairly
Offset by the excessive circulation taxes
which the national banks for many
years have been required to pay to the
government. These taxes were levied
in the beginning for the express pur-
pose Of defraying the expenses OF the
Currency Bureau at Washington. As
these expenses are roundly about $780,
600 a year, and the collections on ac-
count Of the taxes on national bank
circulation something over six times
that amount annually, the surplus over
and above the expenses Of the Cur
rency Bureau collected each year and
deposited in the general fund Of the
Treasury very much. exceed the amount
of interest the government might have
collected on depositary balances. Since
the establishment Of the present ma
tional bank system, in 1863, the ma
tional banks Of the country have paid
to the general government In taxes
and costs incident to the issue OF circu-
lating notes over $213OOO,OOO The en-
tire cost Of maintaining the Currency
Bureau from 1858 10 July |, 1912, in
Guiding amounts appropriated by Con-
gress and all other expenses, did not
exceed S29,0OO.OO0, so that the taxes
and expenses paid to the government
by the national banks exceed the cost
Of the service by more than $1S4, 900
600.
On May Is the Secretary Of the