New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-10


measure is not modified to allow bank
members a better representation has
put into more definite form what for
merry had been rumored would occur
among the larger institutions operating
under the national banking act. BY
some persons such q move will be re-
garded as unwarranted and as not
carrying out a legitimate business pol
icy. A little study of the question must
prove the justifiable position of banks
which may prefer state TO national
charters. The . per cent government
bonds on which circulation is based are
selling from 10 points below par. al
which price the banks were obliged TO
subscribe for them. On such basis IL
certainly is not profitable for banks to
conduct business unless they desire 10
do so at a loss, and when the new act
becomes effective the banks will be
obliged to subscribe to stock in the re-
serve institutions and will be allowed
only , per cent on their money.
Few business men will argue that in
view of the expenses incident to OPP
Grafton and depreciation in any line
that per cent is sufficient 10 compen
safe banks for their investments. and It
is perfectly certain that banks can take
the money they might invest in the
regional banking system and secure a
larger return on il through other
sources. Furthermore. at the present
time the large institutions of New
York, Chicago, Philadelphia and other
places do not carry many per cent
bonds compared with their capitaliza-
tons. Some OF the leading institutions
Of the country have gradually parted
with their per cents. until to-day, It
is said. their holdings represent Dor
rowings rather than actual ownership.
This has been found necessary TO avoid
losses which would have been incurred
by a continued holding Of declining
securities.
The investment situation has not i'm
proved recently, and the buying Of gen.
al bOllNSt "hiNIi StNlIlNu " NC lIlNt Tag
ing In September, recently has lessened
considerably. A bond salesman VINO
has confined his operations 10 the New
England district for the last several
years and who enjoyed a lucrative In
come from the sale OF high grade Sc
| curities to large investment clientele
up TO the period when the new tariff
| law began to affect the industries Of
| New England, finds the situation much
worse as a result of the income tax.
He reports that the bond market is
dead, that it is impossible to interest
people with money in bonds except
| those that are tax exempt. In one dis
trict around Fall River, where his busi-
ness in former years netted him sew
eral thousand dollars annually, ne re-
ports practically no sales during recent
weeks. People who have money in
| New England are said to be boarding
! it in cash and not putting it into Sc
! curities. Probably New England is an
exception of the extreme type, but in d
measure the income tax particularly
must have a restrictive tendency or
| investments, and for some time TO come
| the outlook for a revival OF interest In
| the demand for investments is not en-
! couraging.
No attempt has been made by those
! in connection with the steel industry
to deny the gradually diminishing VOL
| ume of business in steel orders durine
| the last week, and the optimism re-
garding the industrial situation as q
whole that has been more of a hope
than fact has received a check in the
reported conditions Of business. The
! Iron Age" in its review published last
| Thursday, in one paragraph says:
Further declines in prices are re-.
ported this week, but as in every Other
| like time Of hesitation, buying is on 50
restricted a scale that the inducement
10 make deep cuts is lacking. Condi.
! tons are not ripe for broad buying
movement like that which began about
two years ago"
The Iron Trade Review" briefly re.
views the situation thus:
The cautious attitude Of buyers in
Towering themselves for prospective re-
qurements very far i'm the future ic-
mains the marked feature of the iron
| and steel market. How much of tn 5
! is due 10 an expectation Of lower prices
! or to uncertainty over the business
outlook remains question. II is evil
dent, however, that both of these are
effective factors. Revision of prices
downward continues to be made toward
bringing the market TO point wnere
the limits of the present buying can be
extended, but there is nothing in the
situation yet TO indiCcte that the ulti-
mate end Of this movement has been
reached.
From other sources there has been a
con firmation of the slowing down Of
steel business, and ii is evident that
the steel industry is looking TO the rail-
roads expectantly for some signs of d
new buying movement. Reports af-
fccting all classes of trade throughout