The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-06-13
SHARP RALLIES
IN STOCK LIST
Easy Money, London Buying,
Investm emit Orders, and
Shorts Covering the Cause.
LEADERS MAKE GAINS
Local Stock Market Strong and Mod
erately Aetive-Gossip of
Wall Street.
BY i. 4. FLEMING.

by J.. -. FIEMfNU.
Yesterdays action in the stock market
was another story, and entirely, different.
Whether II lasts over Friday. June IL,
1913, or not. it was great bull market,
and one that gave much encouragement
10 tired holders of securities, made bears
cover freely. sent London in to buy back
Canadian Pacific in sufficient quantities
to run up the price rs points, and to
give the list a closing grinding on the
top.
1t was the second most active day or
the present movement Naturally, much
of the business was in the way OF shorts
covering, but commission houses reported
much investment buying. odd-lot and
otherwise, while many were sore at
themselves that they did not get in on
the low of Wednesday. The great army
of shorts has not commenced to get in,
having confidence that the rally is but
temporary, and that the next weakness
will make new low records.
Influences.
There were several happenings that
seemed to give courage. Considerable at
tention was given to the announcement
of Secretary McAdoo regarding the $780,
100000 emergency currency circulation ana
his willingness that the banks should
use IL JUST why IL SnOulQ mas not ut-
veloped. Every banker in the country
knew perfectly well that the emergency
currency law was still in force; that the
Treasury Department, just before Comp
troIler William Barrett Ridgeley's retire
ment. had had plates made for the then
existing national banks-about 1000 of
them-that the plates were made for sew
eral denominations for each bank, and
that the SJOO00O,0O0 had been printed and
was available at any time for any bank
applying for the emergency currency, as
provided for in the law creating it.
While several associations were form
ed, not one dollar of emergency money
has been issued. The application of a
bank for emergency currency would be
an admission that an emergency exists
and the banks have not shown the
slightest indication to warrant such an
assumption.
They have expressed the hope that
either Congress should enact currency
law or extend the Aldrich-Vreeland
emergency law yet another period. as il
expires a year hence.
As it stands TO-DAY it is a safeguard.
an assurance that ii would >be available
iE the event of necessity and as such is
a guarantee against strinSency.
Union Pacific Plan.
that the court looked with favor upon
the proposition Of the Union Pacific and
Pennsylvania Railroads to exchange
holdings, the former of Southern Pacific
stock for Baltimore & Ohio shares, held
by the Pennsylvania. This would elimi
nate holding of stock by competing
roads But this only solves the problem
Of $3.50 900 southern Pacific stock, the
exchange being $42O00,000 Baltimore x
Ohio common and preferred stock.
The Union Pacific asks for year TO
dispose of the balance of the Southern
Pacific holdings, and the court suggested
ma ximum price that the stock could
be sold for.
Attorney General McReynolds object
ed on the ground that he especially de-
sired to separate Central Pacific from
Southern Pacifics ownership.
4 Potent Aid.
4 movement made by the National
City Bank, of New York, was probably
as effective as anything in the list of
happenings.
For many years the bank has had
minimum loaning rate of 3 per cent.
Late on Wednesday the bank announc-
ed call money at IA per cent, and this
smashed the rate on call money to l IL
per cent and kept it down. Naturally
the low rate and the excellent yield in
stocks at present prices made opportuni-
ties for good turns by big operators, and
helped materially. The National has a
surplus reserve of S2s,Oo0,0Oo.
1t may have been possible that there
was support here and there, but the
buying, aside from investment, was short
covering.
Some openings were slightly of. but
as a rule they were better. The advance
etc a. he hull Of tka
in the first three hours, some slight
recessions. but a close near the top.
The probable settlement of Bulgarian
Servian affairs by agreement or through
the good offices of the Car of Russia
was helpful to foreign matters, and
London bought 5000 shares largely
Canadian Pacific and Copper.
Gains.
Canadian Pacific made the largest gain.
In the rails generally the advances were
2 to points. Some to points. 500
Line regained points loss and did il
easily. Reading SIS, Union Pacific 3-s
the best of the Americans; Steel CON-
mon gained 31-4
The only exceptions to the strength
was New Haven. which lost fractionally,
and North American preferred.
A report that Lawyer Brandeis would
bt pTOStNule new maven ana
break asunder the merger with Boston
and Maine caused its weakness.
Local Stocks Firmer.
More than 400 shares of stock and
5000 par value bonds changed hands on
the local market yesterday.
The undertone showed a distinct i'm
provement There were evidences of
good buying in Railway common, and
here there was an advance from IS to IS
and strong closing. Railway preferred
sold at S7Z and IS.
Washington Gas acted reversely, but ii
has held its strength excellently while
other stocks showed a disposition to easel
Oft 1t opened actually Y higher and
eased from 81 to S. closing with ri
point net loss for the session.
Mergenthaler sold at y0isa2lOh, and at
a095sa210 varying odd lots.
Second National Bank sold to the ex-
tent of sixty shares at 162a16291s. In the |
event of President Cox being chosen al
District Commissioner, it would mean
his resignation from the presidency OF
the bank. Whether Vice President Gle |
phane would succeed or not is a ques-
lion.
Gas IS were sold at 1o6 Railway and
Electric Is At g. and CoIumhia 30 NJ i