The Washington herald., 1913-09-27
Melon RUMORS
AGAIN CURRENT
Becoming More Specific but
None the Less Unauthorized.
Cause Higher Prices.
STRONG TALK ON BILL
Chicago Bankers Pay Compliments to
Glass Measure-Crop Money
to New York.
STRONG TALK ON BILL
by I. A. FLEMING.


Every one on Wall Street was talking
of the probable cutting of the Union Pa
cific Iong-ripening melon. which may be
anything from an Usage orange or a
lemon to real watermelon, rich and
juicy. One statement had the announce
ment coming on Monday and predicted
80 per cent distribution. one-half in cash,
the other half in r & o. stock, and there
were several other statements with
which the bulls endeavored TO cheer and
encourage a tired market.
AS A matter of fact. there has been no
decision made as TO the distribution, and
so far as this matter is concerned. the
only news is that good sources expect
the slashing of something in the near
future and hope that it will be rich
feat
But Wall Street was disappointed just
the same that only Union Pacific stock
showed betterment as a result Of the
predictions. that is, material betterment
Reading was somewhat higher, probably
on the report that the company was
planning to dispose of its coal prop
critics and get inside the law, and nat
uraly the seeds were Sown for a melon
crop on the strength of this statement
by the president of the Reading.
Some day We will know more about
this Union Pacific. melon, know its cir
conference. and diameter or else under
stand that wisdom has dictated the policy
of outstanding resources in a great rail-
road as a very convenient thing to have
friend in need and an assurance of
good mana cement With the big cash
assets in the treasury and not given
away the stock should be worth more
rather than less money. Despite the
squirt in Union Pacific it was a dull mar
ket, 260,OOO shares. Close observers saw
signs of distributing stock. and the vary
ing tales of probable L. p. action caused
much doubt about any being taken.
Price Movement.
Tnian Pacific gained three points to
l6l is ant closed at 16O L.. Steel closed
a Thursdays prices. Southern Pacific
Was up a point, Reading gained SIS, and
Nipper and New York Central a like
amount Louisville and Nashville was
the weak sister, with a two points drop.
Realty gained a point, American To-
bacco two, Interboro SIS. and Canadian
Pacific "a.
Peoples Gas declined two points on
the announcement of the alliance with
the electric company. increased dividend
and rights, the consummation of the
boom.
Some of the best-posted commission
men look for a rise in stocks, but the
street is divided. the more so, as late
advices are to the effect that a cam
paign on trusts is part of the Wilson
program.
Against Currency Measure.
Illinois bankers. in State convention
assembled, to the number of 1000, rep
Tesenting 1.5OO banks, at Chicago, held
divers opinions on the money bill, but
the consensus OF opinion was that lit
needed fixing"
Here are some potential interviews:
David A. Forgan told the Illinois bank
ers: The popular idea of the banking
business is that we handle all the money
Of the country and some of it sticks to
our hands. We handle credit which in
many instances we create, and for this
work We receive the smallest remunera-
tiOn in the business world. ! wish we
could hold a convention to explain the
banking business so clearly that even
politicians in Washington could under
stand it The Owen-Glass bill, l think,
will destroy banking.
In the Chicago Clearing House Asso-
citation there are thirteen national banks
and twenty-four State banks. The ratio
is the same all over the country, and
State charters are more liberal and free.
National banks in large cities are at pres
ent acting as clearing houses for coun-
try banks. The pending currency bill
will take all this business from national
banks and leave them only city business.
We can make money only through gen.
eral prosperity"
Senator Sherman told the Illinois Bank
ers' Convention that the currency bill
unwarrantably interferes with stock
holders private funds. Neither can at
tempt to control be beneficial. Money of
this country cannot be held by banks
under laws that place control in hands
of government over its investments or
loans, and direct to whom and on what
terms credit shall be extended"
In the course of these discussions
bankers have not, of course, given up
all hope of material notifications to the
bill before its enactment. Some Of them
seem confident that Objectionable fea-
lures will be eliminated before the bill
emerges from the Senate committee.
They are simply preparing for a contin-
gency. Even those who believe that the
bill will be enacted in substantially its
present form hope for reasonable amend
ment within a year from date of enact
ment. In that year they can refrain
from participation in Federal reserve
banks and still remain in the national
banking system. One of the arguments
of those cOunSellng delay is that II, to-
ward the end of that year, few Federal
reserve banks are established, Congress
may itself become convinced of the i'm
practicability of the bill and make rea-
sOnable amendments
Gets TO New York.
Ten millions of the money deposited
with interior banks for "crop moving
has been received in New York. In the
natural course of business currency flows
that way, and it is a stream that cannot
be stopped by a say so.
Bankers were elated at the receipt i'm
mediately following the deposit of S20,
100000 by the Treasury Department last
week. They rejoiced, according to the
Wall Street Journal, because of the OBJ
ject lesson this movement must give the
Secretary of the Treasury, who planned
to keep all government aid and assistance
away from New York banks"
More has been offered and refused for
the reason that the offers have been
accompanied with requests that the banks
In New York should send government
bonds, which might be used to deposit
as security for government bonds. Bank
ers are unwilling to buy bonds for this
purpose.
The Secretary of the Treasury an
nounces that the total amount of funds
for "crop-moving purposes distributed
to date aggregates s24159.OO0, and that the
District of Columbia received but S407. 900
- mn