The Washington herald., 1913-05-24
Slight Change
in SECURITIES
Early Declines Were Generally
Recovered on Short Cover
ing Later in Session.
WILL. NOT PAY INTEREST
New York Bankers Protest Against
Paying 2 Per Cent on Govern
ment Funds.
By y. A. FLEMING.

meuI uuuo.
ByI.A. FLEMING.
Tame readers found some satisfaction
In tie action of the stock market yester-
day The ease with which it rallied as
the session wore on, getting nack It's
earlier losses 70 a decidedly strong clos
ing. gave the close observer an impress
sion of latent strength.
There was nothing further confirmatory
of the Southern Paciic-Union PACING
compromise plan, although the street stun
feels that the matter is underway for
solution, else the Southern Paclnc
officials would not journey across the
continent The bears made play with
the immediate opening for further re-
cessions and managed 10 bring IL point
reactions on the average, but their enorts
were resisted by their fellows, who con-
cluded that the signs of the times war
Tanted moderate covering anent the eotn
of MAY, and there will probably be more
getting in out of the danger zone before
Monday afternoon, when the Minnesota
rate decision is confidently expected
Money.
market needs. the legitimate business de-
lnand being greatly restricted and few
loans being called. So there is no pres
sure from this source. Most of the liqui-
dation of the forced character is over,
and me market, if one may judge IRON
its action, is in a position TO be rallied
much easier on any good news than II
is to be successfully raided on bad news
ia a word. it is in good shape for con-
tingencies.
The declines were practically recovered
on almost everything. although small
fractions were lost on St Paul, Steel,
Pennsylvania. IG9 81, and Steel
Petroleum Earnings.
California, petroleum for quarter ended
March 81, 1873 net earnings after all
expenses, but before depreciation.
S535.lS6, as compared with S521,Si5 for quar-
ter ended December 81, 1872. After al
lowing dividends at the rate of per
cent on the preferred. the balance is
equal to approximately $40 per cent
on common stock. per annum.
The sales of the session were light:
only $4,000 shares, just about an average
day.
The bearish influences of the day were
the denial by Jacob Schiff OF the opti-
mistic interview accredited to him on
Thursday. the ruction between Bull
garians and Greeks. some little atten-
ton to the japanese situation and the
lac. of any confirmation Of the theory
that is still believed concerning the pro-
posed plan for the settlement OF the
Union Pacific-SoutheIn Pacific matter.
The strongest stocks on the list were
the TobaccOs Liggett & Myers Tobacco
shares were not mentioned. Lorillard
rose points and a like advance was
scored on Snuff.
The weakness in Pennsylvania was
bear argument, the old leader going
to 100 "a
Rather pretentious plans of further
fnIncing and equipment construction
have beer mapped out, but they will
probably wait on the ; per cent freight
rate increase.
Local Stocks.
Washington Gas was the only active
feature of the local stock market. A
fresh block OF stock was marketed, but
the buying that has been in such evil
dence for nearly a month absorbed the
supply at 81 3-4aA rs, and the latter
price was bid at the close.
4 little Railway preferred sold at ~,
the bid price for both issues, with ~
asked.
MergenthaIer showed good strength at
rs 5-Sa21S 81.
A sale of 10 shares of Capital Traction
was made at 10. and the stock was Of
fered at l2O is. with lZU best bid.
VIII Not Pay Interest.
The Chemical National Bank. of New
York City, will relinquish its line of
United States deposits on June l because
of the new order of the Secretary of the
Treasury. which goes into effect on that
date, requiring all national depositary
banks to pay . per cent interest on their
government deposits. This action is not
on account of any exception taken to
the Treasury's order, but II is in ac-
cordance with the long-standing policy
of the Chemical Bank in not allowing
interest on its deposits. 1t is the only
bank in New York City which now OBJ
serves this rule Up to a short time ago
the American Exchange National Bank
also allowed no interest, but during the
last year or so it has fallen in line with
the custom prevalent among other bank
ing institutions
J. B. Martindale, president of the Chem
icsI National Bank, says: I'm deciding
to relinquish our government deposits
amounting to $4,000 on June ! we are
doing so in fairness to the rest of our
depositors. We could not consistently
pay interest to the Treasury, while. at
the same time, not allow interest to our
customers. carrying in many case much
larger accounts with u.s."
1t is understood at the same time that
the general run of depositary banks here
in New York City are not relishing the
idea of paying the government per
cent on their active" accounts. In fact,
one of the large depositary banks has
requested to have its line Of United
States deposits reduced so as to min
the Treasury Department under the or
der OF March 5 last, which has entailed
an enormous amount of detail Other
matter. but are considering similar &C.
ton. Some banks, however, will retain
the deposits and pay the interest charge
as a matter of policy. The National
City Bank is said to be one of these.
It is pointed out In explanation of the
large applications received from the in
terror banks for portion of the So
o0o. 600 government deposits to be distrib-
uted next month Ia thousand banks are
said to have applied that the country
banks might well he able to afford the
. per cent interest because their active"
accounts would be relatively small. and
they are not called upon to meet any
thing like the Treasury business that
falls TO the lot of the reserve city insti-
buttons. In the case of the reserve city
banks the amount of check
ing done by the Postoff1ce and the Treas
ury Department against the Federal de-