The Washington times., 1913-02-09
IN LOCAL FINANCIAL CIRCLES
BY GEORGE II. GALL.


and that It is entirely probable that the
price Of that raw material will be
largely increased to the company for for
company will next year be facing much
, the same problem az has Just compelled
the Georgetown company to restore its
advanced rate and II may be necessary.
!. pGnssd .s SSs OS sass to sss more .sssu sSr s- 4
| Georgetown under q combined company.
| II is unlikely that any advance would
be at all considered by Congress. even
though the company found Itself In Q
President Letter VIII undoubtedly be
reelected At the meeting Of the direc-
tors tomorrow afternoon.
The second edition Of the booklet.
THE Most Satisfactory Bonds." issued
by N. w. Haisey q Co.. presents . table
showing the trend Of railroad, munici-
pal and public service corporation bonds
since 1905. The average market price
Of six representative high grade rail-
in the past SIX years.: Blk municipal
bonds have declined from lo3% 20 ~.
while six representative public service
bonds have lost only half point in that
time. the present ,os, syerags e.. price OF ie0%
In connection with a detailed expiana.
tiou OF public service corporation bondr
and the factors surrounding the buy
ing and selling of them. the bankers
say: "The venturesome. the supernciai.
the inexperienced. or. those. who. for
n: 'sss es ass srs e failure
IN they assay the difficult pursuit Of In
vestulent banking. Sooner or later they
and their clients are bound to suner
through purchases OF .unsound securi-
ties"
One of the effects Of the present cur
rency system of this country is q perl
odical advance and decline In bond
prices. In the fall. when funds are need
ed to finance the movement of the
crops and the large January interest
disbursement are drawing near. money
y IN such demand that banks and In.
employ their funds In the money
market. After January I this money
flows back In abundance and has to be
again invested In securities short-terna
notes and the high-grade bonds are the
i,rst to feel these ehsnsss I IN the sinSng mSnsy
from one to three points In the last
half Of last year. while money was In
greater demand. Short-term notes. the
security closest In form to the money
market for the employment Of funds.
ing to note how far these securities
have come back toward their former
levels. The long-term htsh-grnde bonds,
have gained only about half OF their
last years decline. Notes have dore
point from their en6-of- of-the-year prize ~.
which means, many points decline IN
Yield because Of their early maturftiesL
i fhs Weeks Price Chsnges.
IA
On TIE Washington Stock Exchange
disclosts the fact that three securities
' ere deais In that lad not been touched
this year. F3rme.s and Ne
chanics' National Bsnk. Potomac F1re
Insurance Company. and Greene Csn-iI
anea.- "A large block OF the last, stock |
came out and sold at 81.
Price changes were fairly numerous /
also. The price Of Anacostia and Po-
tomac Railroad Ss dropped from loi TO
,s1a. Considerable shading for a WASH !
ngton railroad bond. In contrast with 1
this issue Washington Railway Fs .
made new high for the year. u buI
the last OF the previous week. Four /
other new highs were set, 100 for Poto-.
mac Consoiidated SIS. e06A for National
Bank. s1A for Washingtou !.
Railway preferred. and ssk for WASH /
ngton Gas
New lows were less numerous. In
addition to Anacostia and Potomac
Railrosd IS. LAnston. MerRenthaief,
Ind United States Trust showed sales
II lower prices than heretofore during
he year. The shading. In 1-anston was
he most considerable. a point and a
,alf
A feature Of the .yek was the bring-
ng out Of some Georgetown Gas stock
md two successive efforts 70 deal. with.
ut result except to furnish quotations.