The Washington herald., 1913-05-14
Light TRADING,
BUT firm Tone
Point Advances Made on Most
Of Leaders-No Liquida-
ton Pressure.
CANADIAN PACIFIC WEAK
Local Securities Steady-Banks Get
ling More Money-Wan
Street Gossip.
BY 4. A. FLEMING.

Street Gossip.
BY 4. A. FLEMING.
While the volume of business was not.
materially larger. there was a better
feeling on the street, caused by dispo-
sition on the part of some shorts to
cover their contracts. The good show
ing made by the Steel Corporation on
the defense in the government suit may
have been an influence for strength,
while another factor was the commits
sion to the Bulgarian Minister at Lon
don to sign a preliminary peace treaty.
London resumed business after the holi-
days and showed a fairly good tone.
Immediately following the opening
there was a trend toward lower figures,
5.as point reactions being noticed: This
weakness did not bring out any liqui-
dation, and this fact. probably more
than anything else, was responsible for
the strength of the afternoon; but with
this strength there was nothing like ac-
tivity-it was the deadest kind of dead
market.
The total sales were but 10000 shares
for the five hours session. or an aver
age of but 81, 900 shares an hour, with
So. 900 in the last hour.
Europe was cheerful on everything
but Canadian Pacific, this stock acting
throughout as If liquidation was going
on and heavier selling expected. 1t re-
suited in loss of 1ss, which. with rs
ON Colorado Southern preferred; "a on
America Tobacco, and rs on Bethle-
hem Steel preferred indicated about all
The weak spots of the session.
Gains.
Reading, st. Paul, Union Pacific, Ill-
nois Central. Lehigh Valley, Steel COM
mon, Steel preferred, Copper. and Smelt-
ing all gained about point and held the
advance, the closing being on the top OF
the late rally.
chesapeake and Ohio altered the well
defined daily plan by coming strong
s.. or IL higher.
Erie. General Electric Great Northern,
and some less important stocks were very
quiet and tgended to easier prices.
There was some covering late In the
day, but with the total sales of the day
so restricted there was nothing worthy
of comment
Annual Meeting.
The annual meeting of the Citizens
Savings Bank was held yesterday at
Alexandria The election of officers re-
suited as follows: President, James A.
Sample; vice presidents, A. p. Crenshaw
p. G. Affieck. John Herbert. and e. j.
McQuade: treasurer-cashier, Bestor X
Walters: secretary. Sidney ]. Besselie;
assistant cashier, George c. Burns; at
torney. Wharton Z. Lester.
The old board of directors was re-
elected. with the addition spf three new
membcrs-John II. Magruder. Gerson
Nordlinger and Louis c. Wilson.
The two first named are prominent
business men of the city, and the third
a prominent professional man.
Local. Securities.
Self-cvident facts on change are the
strength i'm Washington Gas which holds
as steadily as possible around 81 3-iaS1,
and the manner i'm which Capital Trac-
ton comes back when depressed. a mat
ter of fifty-fve shares of the latter sold
at 121. and after call eighteen more. when
il was again put under record pressure
and eased to 100 1-2a120 5-S
Washington Gas sold at So to 81 ga. back
TO S. with stock offered at So and A Sd
bid
Railway and Electric shares We're prac-
tically nominal as they have been for
some days sale of five shares preferred
being the only transactions. Bid prices
were lowered. Stock will sell ex-dividend
tomorrow.
Mergenthaler slow at 26a215 "a. with
Lanston steady at 81.
In the bank stock list Union Trust show
ed at s35
Currency Revision.
The Washington correspondent of the
Journal of Commerce, discussing the
proposal to distribute the reserves of
national banks by the creation of divi
s+ i.-1 ilyol,- fhot
opposition to the plan will develop among
those interested i'm Stock Exchange specu-
lation.
1T will, undoubtedly he a provision of
the new currency bill" he says, that
the reserve banks shall not lend money
upon Stock Exchange collateral or redis-
count notes protected by such collateral
and intended for the purpose of specu-
In alton.
1T may reasonably be questioned. how
ever. whether the supposed Inconvenience
or suffering inflicted i'm this way would
be as great as supposed by some. The
reserve banks or reserve associations. II
created. would render credit much more
liquid and would thereby set free quanti-
ties of funds that banks are now obliged
TO keep tied up i'm their other assets. III
these were released. they might increase
their loans on Stock Exchange collateral.
Doubtless, however, the new plan, il ii
worked well. would change the distribu-
ton of funds throughout the country to
a certain extent, and the effect would
be to alter the sources from which loans
could be obtained on such collateral.
This might lead to a period of readjust-
merit that would infiict hardship upon
some speculative interests
Government Deposits.
Banks are obtaining more funds from
the Treasury Department under Secre-
tary McAdoo's recent departure. and they
are willing to meet the charge of 2 per
cent IL they can have the cash.
National banks are allowed to use but
6 per cent of the funds, the ruling under
the law that they retain % per cent of
deposits being effective on government
deposits as well as individual and bank
funds.
Under the present plan of paying checks
direct the work of the banks is much
more onerous. One and sometimes two
or more clerks are kept busy all the
time keeping the records of such pay
ments-
Government depositary',. is something
of an Advertisement for banks, even for
some of the larger institutions. The diff
ference between the interest profit on as
per cent of the funds and the cost of
clerical assistance. plus per cent to the
government. still leaves a good margin Of
profit to the banks using government
funds, and for this reason they want the
money.
Mmnsey Trust Company.
The Munsey Trust Company opens for
t,,,c;no~~ foy,orrou Morning in the Num-