The Washington herald., 1913-07-11
Slight RALLY
in STOCK LIST
Market Responds but Feebly
to More Favorable News.
What Il Needs.
LINCOLN BANK ELECTION
Gas Shares Shons-Reshiction on
Grain and Security Trading.
Earnings.
BY I. A. FLEMING.


Wall Street breathed a bit easier yes
terday morning, but the asthma returned
again before the close of the session. al
though part of the days gains were
maintained
With the prospect of Federal effort be-
ing directed toward the prevention Of the
promised railroad employees strike, the
Erdman act to be so modified as to work
in line with lessening the strike prob
abilities; with Bulgaria asking for peace;
with the government promising to look
after its 2 per cent bonds and doing
everything 1t can to ease conditions, the
hopeful of the street looked for renewed
activity and higher prices.
For an hour. or two they realized the
expected, in q degree, but the very fact
that the response to the good news of
the morning was SO 'unimportant. that
the hopeful brigade, the commission
houses and brokers. long doomed to the
unexpected and the expected gone wrong.
Joined the glooms again, and found little
real satisfaction with the days record,
either in sales or prices.
Wall Street really needs more impor-
tant news than anything that can come
over the wires for some time.
A clean bill Of health on some Of the
charges that are made against railroad
properties; permit to railroads to add
a fractional advance to freight rates;
less antagonism from members of Con-
gress, and one other very important
item, the settlement of the currency
question or the extension of the Aldrich-
Vreeland act. Confidence is badly need
ed. 1t will perhaps take months. maybe
years, to regain the departing confidence
of Europe.
Railroad barons in times past have run
things with a high hand-their sue
days have gone.
Contraction, Not Expansion.
One thing is very satisfactory to in
terests that have permanent welfare and
Improvement of conditions at heart.
Contraction or safe expansion for the
next few months is desired, and Just
at present there seems to be no move
ment toward expansion. Readjustment
is going along beautifully. and the tenn
porary fluctuations in the market have
but little significance.
The Standard Oil interests are said to
have the brakes on. wherever il has the
power to put them on, and II is admit
teddy a powerful factor in any move
ment IL undertakes
At the top of the sessions record
Union Pacific was rs higher; at the
close a point; Reading practically lost
all its gain; Southern Pacific was 3-s net
lower: Canadian Pacific on profit taking
rose ala. but held half of the advance
There were a number OF k-point gains
throughout the list, while American To-
bacco sold up 81 points.
Floyd E. Davies Elected.
FLOYD E. Davis was yesterday elected
president of the Lincoln National Bank
hlling the vacancy caused by the death
Of the former veteran official. Richard A.
Walker. Mr.. Davis was formerly first
vice president of the bank.
At the meeting, which was a regular
gathering of the directors, Robert CAL
lahan, second vice president was ad-
vanced to the first vice presidency, and
Patrick T. Moran was CHOSEN second vice
president.
Gas Strong.
It is the same old story from day to
day in the local market, where nearly
everything else is playing second or lower
down the numerical scale to Washington
Gas.
There is positive and distinct buying
movement. Lots of stock comes out
every day. but the absorption keeps on
unchecked.
Just what is expected: what is looked
for. and what the plans are remains COW
cred. The Gas Company bought Analos-
tan Island, or Mr.. Letter bought ii for
the company. The corporation has new
general manager-admitted. What else?
They are doing a good business; so are
the railroad companies. 1t pays 5 per
cent and better at present prices-but this
is not the reason. The accumulation has
been going on long enough to suggest
something besides investment
The stock bulls harder at Sass 3-S than
1t did on the way up. but the offerings
are not quite so heavy. Predictions of
the friends of the stock are for higher
values.
1t closed with sellers at IS s-s yester-
day.
Railway common sold at 50 and 50 rs
with a star" nothing between.
Bonds steady-1Oo for Potomac S. lo4
for Norfolk and Washington, and 100 for |
Traction IS. |
Exchanges Have Few Friends.
Exchanges have few friends. These |
days exchanges are necessary. necessary |
evils, perhaps. On this question nearly |
every business man will agree. The time
has gone by when the producer of q few |
hundred bushels of wheat or corn can
personally market it-save at the ele-
vator Of interests that had naught to
do with the planting or in assisting ma
ture in the processes of maturing. Great
the purchase and sale of grains, where
exporters can obtain cargoes. millers buy
by sample or grade exchanges, where
buyers and sellers meet-these be neces-
sary evils, II evils at all.
A market every day In the year, when
business is transacted, is necessitated
for the millions of securities of great rail-
roads and Industrial corporations, as well
as for the purchase and sale of securi-
ties of small corporations Aggregate
capital needed for these great enterprises
would swamp any one person, unless
blessed or cursed with an Aladdin's lamp.
Money Of millions are invested. II there
were no daily market for grain and Sc
curities. banks would hesitate to make
loans on this collateral. and descend to
pawnbrokers
Speculation alone keeps the doors of
exchanges open. Without 1t they would
close
The Reason. |,
In an amendment which he will intro
duce shortly to the income tax section Of |
the tariff bill. Senator Cummins proposes 9
that levy Of 10 per cent shall be made
On all sales Of securities, products of thI