The Washington herald., 1913-08-22
BETIERMENT in
BUSINESS tone
Recovery Delayed by Mexi-
can Situation Better
Demand for Bonds.
MERCHANTS BUY FREELY
Currency Conference Today-Stoeks
Lewer-Denand for Bonds In
proving-Gossip Of Street
MERCHANTS BUY FREELY

pfoVng-1oS0p OF Sueet
BY 1. A. FLEMING.
Business sentiment, while hesitatins.
has materially improved during the last
few weeks Everybody has been gloomy
and looking for something to happen to
knock the underpinning from under busi-
ness. Naturally the probable tariff
changes have been charged with much
of the lessening volume of trade-the
hand-to-mouth buying order--in order to
keep shelves as clean as possible for the
entrance of new conditions. But the de-
lay in this respect has but cleaned out
stocks to q point where rehabilitation is
necessary. There were more buyers in
New York City this week up to date than
for months They just have to have sea-
sonable goods.
Moreover the recent display of strength
in Wall Street made the grumblers stop
and listen. Stocks do not advance when
things are going to the bowwows. Ad-
mittedly, part of the advance was due
10 manipulation.
Having stopped to take stock of the
strength in the market, business at once
assumed a better aspect, and a more
favorable view is taken by some Of the
leaders on the indication Of an improve
ment in conditions.
One of the telling points that is being
quite generally noticed is the unlocked
for improved earnings of railroads and
fair employment of equipment. Railroads
are now making every preparation for
the fall and winters business, hoping by
reason of increased cars to avoid the
shortages of other years. Freight cars
constructed in 1872 totaled 226,l95 in the
United States, Canada, and Mexico, more
than double the 1911 construction. The
surplus year ago turned to shortage in
the last week of August.
Corn Shortage.
The shortage in corn crop. and possibly
in the cotton yield, naturally indicates a
slowing up in some sections Of the coun-
try. but there will be sufficient aggregate
yield and urgent demand to make the
l-riceS satisfactory to the producers ana
10 keep business good.
Lack of action on tariff is not helping
things, yet business has decided 10 go
ahead, but with sufficient caution to be
ready to turn.
The Mexican situation Is evidently deli
cate. to speak most guardedly, and the
slow-up of the last few days has been
probably mere due to this than anything
else, especially to the foreign interrrsta-
tion. which is more unpleasant than local
diplomats views
Business Goes not consider the Mexican
matter SO serious. 1t is the general be-
lief that it will be permitted to simmer
TO its end-that the worst would be a
blockade. not an invasion.
But it is just one of the unfortunate
happenings of the times.
Depression in Bonds Passing.
The depression in bonds of all descrip-
lions, even to governments. has been
feature of the entire year, especially
since the currency measure was outlined,
and a slow recovery in this important
section is seen by the hopeful ones Bonds
are showing something like strength,
where a few months ago it was scarcely
worth while for bOndholders to send out
circulars.
Money has been held very closely. but
it has not been quite SO much a case of
scarcity as of desire to be fully pre-
pared for any emergency. This some
thing going to happen was in the air.
and bankers husbanded their resources
to the curtailment of credits to anything
that had the tinge of speculation and
kept as large proportion OF liquid assets
as possible.
Treasury Aid.
The much-taIked-of. much-advertised
S5G go. 600 or more will. il is believed, be
handed around by the department to-
day. Two per cent cash, when per
cent is easily obtainable. is welcome to
the bankers, and it will help much in
certain sections for time, and then
lack to the financial center-New York.
This. too, despite sincere efforts OF the
part of the department to reach small
banks in distributing the coin.
All reports from the South have been
full of encouragement. Low prices for
cotton are about the only trouble found
in that section.
Bnnkcrs' Conference.
The currency bill will come in for some
praise and much criticism today at the
hig conference of bankers from all over
the country. The bankers recognize the
fact that there are some good points. but
that some proposed measures would be
harmful and should be changed. Messrs.
GaIliher and Poole were the only local
representatives, Messrs. Harper and
Clapham finding business in the way of
the trip.
Frank A. vanderlip. of the National
City Bank, said:
''They all recognize that the proposed
system has many excellent features
which can be heartily indorsed, but. on
the other hand, the view prevails quite
generally, 1 believe, that the bill has
some grave defects which ought to be
remedied. Most of us feel that there
should be one central bank, and that
the central bank should issue its obliga-
tions, and not the government 1t is
true, nevertheless, that the bill does rec
ognize the value Of centralized power,
and that is a good point In its favor"
The conference will be attended by the
members of the currency commission of
the American Bankers Association, by
representatives of forty-seven State as
sociations. and 1s1 clearing house asso-
Citations.
The findings of this great gathering of
bankers cannot be ignored, or, rather,
should be given every consideration.
There is little doubt but that the entire
assemblage will be near an accord on
the Federal Board of Control-the most
Objectionable spot in the measure.
Potomac IS 30 rs.
Yesterdays session of the local ex-
change was saved from the usual de-
pressing dullness by sales OF fourteen
81 600 bonds of the Potomac Electric
Company. consolidated issue. These were
sold in single bonds, giving the impress
sion OF a squirt OF activity.
Columbia Title sold at Z, and tive lonely
shares of Washington Gas at s4A.
wall street.
Opening of the stock market was VI
lower on the average, with the leaders
or "a MexicEl situation and London's
persistent selling broke the list.
The weakness in Southern Pacific
which sold to sss. has had bad effect
ON the list Close observers are Of the
hAo Hrxrvf-