The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-08-15
Strength SHOWN
IN bank REPORTS
Responses to "CaA" lndi-
Gated Usual Preparedness
at This Season Of Year.
MARKET ADVANCE HALTS
Damage to Corn Crop May Be Seri-
ous-Slow Day for Locals.
, Gossip.
By i. A. FLEMING.

By i. A. FLEMING.
II is Questionable If the recent cali
will disclose very many national banks
shy on their legal reserves The final
returns of the various cities will be de-
cidedly interesting, and will probably
show that the banks have strengthened
themselves for the fall months, that the
restriction of accommodations TO the
wants of legitimate business, with the
knowledge of tariff changes imminent
and the conservative feeling existing In
financial circles has. in many cases
caused a strengthening of the banks re-
serves rather than weakening.
There has been such good demand
for money that bankers were in a posi-
ton to pick their loans and have 1elt
that they were doing their duty in caring
for their customers.
WASHINGTON banks are Strong; few less
than % per cent reserves Will be found IN
the local contingent; moreover, the call
caught our financiers preparing to make
another big payment to the government
SsOO,pOQ to Uncle Sam.
Today a matter of $4,000, being the
second payment on account of the S,OOO,-
BOO tax money so generously advanced ps
the Treasury Department, pending the
needs of the Departments, is being re-
turned. OF this sum $l,60O,oO Will nave
been turned back to the government al
the close of business today. and the COL
lateral deposited therefor released.
Another 20 per cent will be due in thirty
DAYS, and thereafter the repayments Will
be made in $50, 900 chunks
Preparing for Crop Movement.
Naturally some of the Western banks
have been preparing for their annual
IRON expenditures and as there has been
considerable money sent into the coun-
try, they show reduction in reserves De-
low the figures of June 4.
Conservatism in the fraternity and pre-
paring for exigencies has made them
strong.
The statement Of the twenty Chicago
national banks as of August shows
ratio of cash resources to deposit liabii-
ties. S7Sl per cent. against 1876 per cent
in June reports, 37.05 per cent in April,
and IA per cent September 4, 1872 The
deposits are s45S.2g5,57i, a decrease 81
81 So SI7; loans and discounts are SSje.-
bi9. 964. an increase of S6,2s.,5ii; cash re-
sources are Sl70,9ss, 6l4, a decrease or VI
z71.7A, The drop in deposits is largely
due 10 the fact that call date fell on
Saturday, when country Withdrawals are
large.
chicago bankers, in conformity with
bankers in other cities. have been looh-
ing after themselves. They are waiting 10
see the outcome of radical legislation ana
10 observe business conditions thereafter,
the meanwhile holding oheir resources
well in hand
Government Aid.
The action of the Treasury Department
nj 70 ha
lions of the country, and in generally IL
creasing government deposits, helps die
situation materially.
Serious damage to the corn crop VIII
lessen the amount needed in the western
Middle States, but there will be sufficient
other crops to strain all facilities.
The $5O,0Vc,OO government cash, about
which so much adoo has been made. Will
not be drop in the bucket.
Secretary McAdoo has assured the
small banks that they will be cared for,
which suggests the thought that thty
have not peen properly cared for In
MANY previous crop movements in the
last few decades.
Just as the country merchants, the job
Lers, the manufacturers, each class IN
Its place cares for the agricultural COM
nunity, to say nothing of the mail order
houses, so the small banks, the larger
banks in cities and the big banks in r.
serve centers care for the crop opera
tions-all IN good order. as in the years
that have gone and as they will in the
years to come.
And in years that have gone, time ard
again, the Treasury Department has dis
tributed millions in the banks, taking
proper security therefor, in aid of the
crop movement, but never before with
quite so much publicity, and incidentally.
without such heavy travelling expenses
imposed on the banking fraternity.
Halt in Advance.
There was a halt in the upward trend
in Wall Street yesterday, just as the-2
was a change in the weather. and both
were due.
Not since the June bulge started, and
especially since the bulge of a few days
ago, has there been any reaction. Incl
dentally. it might pe remarked, that the
sale of Southern Pacific shares held by
Union Pacific has been largely accom-
p!ished, and it is no longer necessary to
window dress the market to make the
price, go, look attractive.
1t is not just the time to bull stocks
There is every reason for going slow now,
Just as there was a year ago. None OF
the changes that are coming, save with
u Lew OHlCtnOIueTS, nave diTlNtc. LII ii
changes are nearer, but they have net
become effective, and there is no telling
just when they will.
Peril TO the American corn crop is a
pretty serious matter for the railroads
of the East. some of the big granger
roads, as it is for the producers cut 5n
from revenue.
Crop reports look serious, and, allow
ing for the usual exaggeration of bis sed
observers. II is more than probable that
there will be a serious decrease in the
great maize crop.
There was considerable action in t. e
market, but the net result of the session
was not 50 much a show of declines as
hating IN the advance. The bulls stili
have the upper-hand, but there will ts
more proft-taking from this time on.
London showed lower levels and was
followed by u point general recessions on
our opening. Following this came sharp
rally. and the highest prices Of the day
were established. This strength con-
tinuec for time, and then turned to
weakness as quickly as the advance &C.
veloped, and almost to the same extes:
Steel common was under pressure, on
reports If less favorable conditions in
the trade, point decline being sustained.
some Specialtfcs.
Among specialties Mackay rose almost
points and Pump preferred A fea-
lure Of the irregular bond market was
the sale of Mexican Railways 41-2s at
g, against 81 some months ago.