The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-06-15
THE SITUATION
HAS Improved
Loosening Of Money Market
and Prospect Of Sane Cur
rency Legislation.
GAINS MADE In STOCKS
Washington Again Demonstrates Its
Independence As Investment Cen
ter-Review and Outlook.
GAINS MADE In STOCKS

throughout the United States and in
Europe, and the practical certainty of
peaceful closure of negotiations growing
out of the Balkan troubles is practically
assured.
1t was on Thursday of last week that
the change came.
The first evidence was in the more
friendly attitude of the great financial
interests of New Yorl--the release of
millions of money from vaults where it
had been accommodating for months,
while the sacrifice of securities in the
processes of readjustment continued
without much effort on the part of these
same interests to check it They were
Indifferent because they expected it,
knew the break was coming, had unload
ed and prepared TO replace sold out Sc
curities at bargain-counter prices
Whether it was the bank call. the re-
minder of the emergency currency in
vaults, or the attitude of helpfulness as
sumed by the administration was i'm
possible to judge, but probably much
natural boarding in preparation for the
call ended when it come.
Banks Were HoardfnI.
There isn't any question but what
banks were keeping their available cash
well up to and beyond the necessary re-
quirements, not only in New York. but
elsewhere. in central reserve and re-
serve centers in the East well.
1t seems next to certainty that there
will be a currency measure enacted dur
ing this session of Congress and that it
will be along conservative lines and not
at all tinged with anything approaching
rabid populistic legislation.
That measures of the latter character
may be introduced in the House from
time to time does not entitle them to be
recognized as probable influences, for the
administration will have none of them
With great crops maturing. with bust
ness ~ure to revive just soon as it be-
comes known when the tariff will become
effective, seasonable weather. money
easier and in better supply. the prospect
is much more encouraging.
Rate Decision.
While the Minnesota rate decision was
a keen disappointment to the railroads
and to financial circles, there was as
suranCe that railroad property had to be
respected just the same as any other
property, that the railroads had the right
to their unearned values through ap-
probation of property. that confiscation
was impossible, and that the power
possessed by the States was only by the
grace of Congress.
The Hill management has given orders
stopping all necessary WOrh
tain the efficiency of both the Great
Northern and Northern Pacific lines
this as the result of the decision.
Some railroad officials declare that in
the end the decision will be more favor
ably interpreted.
Bank Statement.
tt q was an actual increase in the
reserves of New York City banks of
& no decrease N
tically equalled the increase This re-
duction in loans was accomplished with
actual loss in deposits of A,4G2.O0e.
There was encoura cement in this show
ing. High rates of money will have to
go until crop moving time.
There has been no special need for
them Business has been decidedly slow
and unreasonable weather and the GER
tainty of tariff changes has made it even
more quiet. Manufacturers have been
slowing down to keep pace between de-
mand and supply to be in a position for
the tariff changes, when effective.
In Washington.
There are unmistakable signs of an i'm
provement in real estate in Washington
and real estate is the first to feel de-
preston and one of the first to catch
the spirit of recovery. In various parts
of the city building plans are being car
ried to completion and some rather pre-
tentious propositions that have seen held
up pending easier money are being re-
vived. Money, almost impossible to OBJ
tain two months ago for building pur-
poses, is once more available.
Once again Washington has shown but
a sympathetic sensing of the troubles in
New York. and the smashing declines in
stocks and excellent bonds on the New
York list.
-
in our local market. There has been
little pressure anywhere in the list. and
only within the last week or two has
there been recessions worthy Of mention.
Washington is the home of investors
not spectators. Margin trading, except
on margins that prohibit speculation, and
mean ultimate payment in full, is not
INDUCED in.
There has been no forced selling, and
so far as known. no calling of loans by
local bankers
Investors in Washington securities
have had every evidence of the indie
pendence and steadiness of local securi-
ties and bonds. and il there has been
some little readjustInent in bonds. it has
been in recognition of the fact that
money is worth at least per cent.
Most local. stocks and bonds are at the
low of the year. including bank stocks;
for it has only been within the last
fortnight that Washington has shown
the sympathetic softness.
Yesterday in Wall Street.
For a time after the opening Satur-
day the market showed a disposition to
wabble and then it came strong, gain
ing tone toward the final hour, and
making a strong closing at near the top
prices of the three days recovery.
The bears acted as il they considered
il time for another raid. but they quickly
changed front on the evidences of good
buying and covered freely. 1t was just
as good a closing as on Thursday, but
at sharp improvement and better CLOS
ing than on Friday.
Evidences of good buying were recog-
nized. and for once the movement was
largely in the leading stocks.
First there was drop of half point,
then this was lost in the subsequent
gains.
When the fray was ended Reading had
gained u, Union Pacific 2A. Southern
Pacific practically points, Hill shares
points, Pennsylvania, New York Cen
trail, and other high-grade rails point,
and most of the indrstrials KIza1h points,
with the closing near the top.
American Tobacco moved up. SIS. and