The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-04-18
STOCKS FIRMER,
BUT VERY SLOW
Bank Of England Reduces Dis
count Rate Foreign Condi-
tons More Favorable.
MAY GET TAX DEPOSITS
Assistant Secretary Williams Favor.
ably Inclined on Bankers'
Requests.
by J.. A. FLEMING.

by IA. FLEMING.
1t took a reduction in the Bank OF
England rate of discount from per cent
to 41-2 per cent to give the street salts
factory evidences that the foreign situd-
ton was mending-this and the further
assurance that the war vessels OF the
powers bluffing Montenegro would be
withdrawn.
The Balkan war is now taking on the
shape of the long-drawn-out scrap be-
tween Italy and Turkey. not so vastly
important to other interests and yet liza
BILE to raise a storm at any moment.
The assurances are renewed of peacs at
hand. but peace is still in the distance
The market opened slumpy. with small
fractional recessions: then. during the
first hour, turned firmer. and the shorts
witnessed sufficient evidences of better
ment to cause uneasiness, with the result
that they covered quite freely, the re-
suit being advances of moderate proper
lions in many stocks
Union Pacific rose Is Reading 3-S,
Steel SIS. ST. Paul IA, and Mexican
Oil IFS, while Canadian Pacific. Lehigh
Valley, 500 Line, Reading first, and 4
number of stocks made proportionate adj
vances.
Reaction.
1nefl, Nnen Ine news ndO DeeT us
counted when the scared element i'm the
bear ranks had covered, there was p
let-up, for which there was no other
reason-Just the belief that will not down
that conditions on this side of the big
pond do not warrant advances.
There were more people favorable to
the future of the stocks yesterday, two
10 one, than on any previous day of the
week. when the gloom has been so thick
that il might readily have been taken for
a fog at sea.
Stocks are influenced by foreign mat
tiers. just as conditions here effect for
eign status. but the things ahead of the
security trade here are more threats OF
uncertain happenings when our tariff
shall have evolved, when the Attorney
General shall pay his compliments to
corporations. when the Supreme Court
shall hand down the Minnesota rate case
decision, and trust legislation becomes
more drastic.
These are the real influences that are
TO be counted on, while on the other side
the fact that the public is not holding
stocks, that the insiders can. If they so
choose, move up values, is but neutral
izing to bear motives.
Fair Closing.
The closing was moderately strong
There were more gains than declines,
three to one, and the gains were in the
more important stocks. Union Pacific
held but IA of its adavnce, Reading -,
st. Paul ga, Mexican Oil a point, and
Steel barely is.
With all the price f1uctua tons. the bust
ness was very limited. but 100000 shares
for the five hours session.
Local stocks.
There was probably more business over
the counter yesterday than on change.
Bonds moved rather freely, and the
bsks were in the field for favorite is
sues. II the movement to make local
bonds sufficient collateral for tax moneys
is successful. it will have distinct effect
on our local issues.
On change there were but three prices
for the leading utilities, % for Railway
81 for the preferred, and s. 1-2
for Washington Gas. Further advances
came slowly. The only sign of invest
ment demand was in Railway preferred,
which is i'm favor with investors.
A little Mergenthaler brought 21S 81
and an odd share 21S Ia.
Union Trust Stock, 1Sl IS.
NJ. e. Allies and A. 6. Chaplain. as a
committee of the Clearing House Asso-
,iation, called on Assistant Secretary
Williams yesterday, by appointment, and
discussed the matter of depositing tax
money in the banks according to the
ocular custom during the last seven
years, with suggested changes as to Sc
curity and repayment.
They were given assurance that the
department. would give thorough con-
iideration to the suggestions advanced
~ the committee from the local clear
ng house and the prospects, according
o one member of the committee, are
considered good, not only as to the |
deposit, but as to the 10 per cent a |
month payments and the acceptance of
ponds of local corporations as collateral. |
The committee also suggested that I
4, 100000 be the amount distributed in
he banks. Assistant Secretary Will !
ans asked for a list of local bonds in |
he national banks.
Robert n. Harper, one of the COM
nittee, was unable to be present at the
having been called to Lees |
,urg.
Listed Bonds.
Efforts recently have been made in |
congress to confine the investments of |
,onds listed or the stock exchange. |
This surely cannot mean only the New |
FORK Exchange. Banks know much more |
bout local bonds than they can possibly |
NOW about any railroad notes OF bonds
indeed, il is frequently hard to keep
rack of these issues-they come so
while the banker is thor
ughly familiar with local bonds, the
BUSINESS of the corporations and merit |
4 issues.
Listed bonds have a certain amount of 4
merit. there is nearly always a market
or them at some price, and yet there |
re bonds well rated that have not been
sted anywhere-municipals, for instance,
onds of towns and cities, carried on
he bond dealers circulars, but not |
sted on Change.
A certain bond house operating in the
Cast holds that close sticking to listed |
ssues is folly, and under this heading |
to explain:
Attempt 10 Correct Investment
Folly"
These bonds are listed on the New
york Stock Exchange This phrase is
aiken by many investors as a guarantee
4 immediate marketability. The fol-
owing facts are offered to show the
allacy of considering Stock Exchange
sting a synonym for ready convertibility
nto cast: l.
There are S47 issues of railroad and cor
Grafton bonds listed on the New York
took Exchange. During the year 1912
OF single transaction was recorded in
g of these issues. The activity of one
alf of these issues was limited to the
ale of one bond every seven days.
'yer one-half of the total amount OF
usiness was confined to twenty-four
ctive and for the most part speculative
sues.
Listed bonds show much wider nuc-