The Washington herald., 1913-01-08
MONEY MARKET
Will BEEASIER
Local Bankers Interested in
Policy Of New Treasury
Head on Tax Deposits.
BONDS IN GOOD DEMAND
New York Stock Market Shows Good
Gains and Shorts Are
Run In.
By i, A. FLEmING.

By 1. A. FLEMING.
The period of tight money ID over. The
United States moved its enormous crops
without the aid of the government and
without calling upon Europe for a set
tlement Of obligations.
Moreover. our great financial interests
absorbed an enormous amount of foreign
holdings of American stocks, sold when
conditions looked very much as IL there
would be a general European war.
Europe is greatly in debt TO the United
States and eventually this obligation
must be settled. either in the shipments
of gold to this country or in future
Liquidation OF our securities.
Because of the fact that conditions
abroad have been much unsettled and
capital made nervous over the war be-
tween the Balkan allies and the Turks,
Europe has been permitted TO stay the
debtor nation.
Money is returning from the West at a
rapid rate. and the surplus is increasing
correspondingly in all New York banks,
as well as in the banks of Washington
and other cities.
AS a result Of this easy condition there
has been a rise in the price of high
grade short-term notes. about a point.
and commercial paper is once more mar
ketable
The underwriting of the large holdings
of Southern Pacific stock, owned by
Union Pacific. s126.0OO, 600. which must be
sold. will make money in New York
little closer; for it would never do to
throw such a large block Of stock on a
market. forced sale, without being pre-
pared TO protect it.
In Washington.
In Washington money also is working
to an easier basis. The real estate de-
mands are not as heavy as usual at this
time of the year. and local institutions
figure more or less prominently on the
local exchange as buyers of high-grade
bonds
Tight money in Washington comes in
the gentle springtime. Our merchants
are then borrowers, discounting their
bills freely while the government grabs
off its millions for taxes
This brings Us to an interesting point
Before the next draft of tax money from
the banks a new administration will en-
ter and dominate Washington. as well
as the rest of the District of Columbia,
including Georgetown.
Will the new Secretary of the Treasury.
when inducted into the office now pre-
sided over by Secretary MacNeagh. turn
over S3.OO0.0O0 tax money to the banks
to be repaid in installments AS usual
or not?
There is no question but what the
money ought to be put back in the
banks-it is in every large city in the
land. although not with the impartiality
that is accomplished in Washington. II
is vital question and il is to be hoped
that it will not need an investigation.
a probe to decide that the present policy
should be continued.
Gas Matters.
The Hume suit was the subject of dis
cussion at a special meeting of the d.
rectors of the Washington Gas Company
yesterday morning. Discussion pro ana
con failed to result in any course OF &C
ton being decided upon, and because of
the fact that the attorney for the cor
poration was engaged in court, further
consideration was postponed for a time.
In the meantime, President Letter is
''ducking" in the bayOus, channels, and
marshes of Louisiana, somewhere below
New Orleans.
And also in the meantime the price Of
Washington Gas holds decidedly steady,
unaffected by the suit.
1t is claimed that should the court
order the sale of the holdings in George
town Gas Company owned, legally or
otherwise, by the Washington Gas Com
pany, the proceeds of the sale could not
be distributed, but would have to be
placed in the custody of the trustee of
the mortgage of the Washington Gas
Company, as part of the trust assets for
the bonds.
In the meantime. also, many share
holders are holding their proxies. intend
ing to exercise the right to vote in per-
son.
Wall Street Market.
Starting slowly. gathering speed and at
the same time strength, the New York
stock market made a good closing. with
stocks. 1al 81 in the leading rails, with
serious weakness in Beet Sugar and
Western Maryland only.
Just why there should be any advance,
Just why the rally, no one seemed to
know. except that the interests that con-
troll Wall Street were in the humor to
run in the bears and in their manipula-
ton caught many stop orders from the
shorts of Monday, and they were as
sisted by the reports that European
powers had interested themselves in the
interest of peace in the Balkans, and,
further that Adrianople might surrender
during the discussion of peace terms.
That the sale OF s126,Ooo.ooo Southern
Pacific stock is a bull argument. is ques-
toned That further dissolution Of
trusts, further splitting of things gen.
orally, and obstructions to the old method
Of doing business is generally admitted.
The majority in the House is but look
ing for subjects, and there is no telling
where the lightning or the probe will
strike.
With all the show OF strength of Tues
day. with the general gains In industrials
and rails there was deep undercurrent
of bearishness that indicated that the
bear who would stay with the market
would make a good thing. although any
endeavor to follow the daily fluctuations
would puzzle even the experts. One
good feature was the recovery In the
Petroleum shares, all the leaders coming
back with gains of 1-2 points.
The, coppers also were much better.
Equipment stocks were rather quiet, but
steady, not sharing in the advances Of
he session.
Bank Earnings.
THE American Security and Trust
Company made between Is and IA per
cent in 1872.
The National Savings and Trust Com
pany made 2l.G per cent on its capital.
The earnings Of the Columbia National