The Washington herald., 1913-08-30
Steel, SmeIter, and Reading
Higher-Traders Wait on
Mexican Settlement.
TURNING BACK THE CASH
Frisco and Denver Refuse Treasury
acknowledgements Bonds.
acknowledgements.
by I. 4. FLEMING.

Of Mexican difficulties amicably. The re-
ports that all was not as smooth and
easy sailing, as had been expected, and
naturally there was more or less nqui-
dation. London took whack at the list
selling some 2G,OCO shares on balance. The
bears made a play for a break, but they
were only partially successful, for after
the first hour the leaders took on
strong tone, but many of the high-grade
trunk line stocks had hard shedding.
After considering the matter for an
hour the bulls found little more cour-
age and run up Steel common TO CO.'S,
meeting orders and detecting more SELL
ing orders at Go. The reaction at the
close was to a net gain of Z of point
for the day.
The fact that there will be no sessions
of the exchange until Tuesday may have
caused some profit taking and added TO
the selling. Union Pacific, at the top
was half point high. but closed barely
even for the day. Reading was rs up
at the top. but eased to y net gain. In
terborough WAS strong and Il better;
Topper strong; Smelling made the pace
with all advance of Is. but lost of most
OF the gain.
St. Paul lost S. Nipper SIS, New York
Central lis. Mop a point, and New
Haven =.
There seemed to be a disposition on the
part of traders generally to await the
passing Of the holidays and to await
easier money and i finality in the Mexi-
tan matter before continuing on broad
trading basis.
It was much better than an average
Session. with 325,pOO shares sold for the
tive hours. The bank statement today
Is sure to show a loss in deposit and re-
serves.
Mexico and money were the chief fac
tors.
Don't Need Their Portion.
san Francisco banks have informed the
Secretary of the Treasury that it does
not need the proportion of the A6.JOOCeO
crop-moving funds allotted to them.
1t looks now as if a considerable portion
Of the fund would not he distributed.
The prevailing fear of stringency has
been materially lessened.
In one other city deposit offered of
SsnoUu was refused 50 far less than IL
per cent of the cash has been sent out,
but shipments will be larger from this
lime on.
Another local bank received 10000 al
IOtment yesterday. and yet another is ex-
peoting Sl5o,c0O today or Monday.
Government Expenditures Larger.
During the month of July and the first
cash receipts OF the government increased
from SlU> 275.2:'S in the corresponding pc
riod of the last fiscal year to Sll3, GS9, ,2S1,
At gain OF S475t.0Cu
But the expenses have also Increased
rapidly, the disbursements being $l6,144,UOO
greater than during the same period of
the last fiscal year.
These appropriations were, of course, |
made by the previous Congress. The |
efas Ut-H ri.-Ia 8f,-,f
expenses. Si16.O6 in the State Department !
nearly SSCOcOOO on pensions, while our
fast diminishing Indians cost the govern |
uent S2.2iG, ,OUJ more than in the previous !
fiscal period.
We must be getting nearer prepared for I
war. as the department expended $500 /
gU and the navy an extra million. /
Treasury and agricultural eXcesses were /
Very moderate, A,S7LOO0.
The District of Columbia, poor thing, |
has had to get along with SI75,OOO less |
for the ffty-eight days than she was
given a year ago at this time.
1t will be necessary TO gather in the |
income tax, internal revenue cash, and
corporation taxes one OF these days, for |
the expenses are increasing much rap
idly than last year, and already there |
is an excess OF expenditures over re-
ceipts for the fifty-eight days of 500
1851. This is $s,74O,5OO in excess Of the
income for the first ffty-eight days in
the last fiscal year.
Great Gathering.
President John Poole OF the Federal |
National Bank, delegate of the local
District Bankers Association to the Cur
Tency Convention at Chicag-, returned
10 the city yesterday, deeply impressed
with the importance of the gathering |
and the dignitied, conservative attitude |
OF the speakers, although recognizing
Immediately that the proposed Glass /
owen measure could not meet with the
approval of the many representatives
Of clearinghouse and banking associa-
Iions present.
Tney approached the consideration Of
the Objectionable clauses rather with a
view of securing compromises than fore
ing through radical changes generally.
Mr. Poole returned by Detroit, Buffalo
and New York City, and with much
larger acquaintance than he had before
he went West"
It was announced yesterday that the
House Banking and Currency Committee
will give a hearing to the representa- :
lives OF the American banking Assocla- Z
tion who come here fresh from the Chi
cago gathering. primed to present the
objections of the convention.
Government BOnds-A
Continued inactivity has characterized
the government bond market during the
last thirty days. The prompt reaction
to a higher level followed the announce
ment that the currency bill would be
to provide cash redemption for
IS at par twenty years hence Con-
fidence being thereby somewhat restored,
a sympathetic advance occurred in tie
market for all the other issues. A
waiting, hesitating market has since re-
suited.
The recovery in prices has in a large
measure been also helped by the ruling
of the Secretary of the Treasury re-
specting his distribution Of about $5OOOO,-
BOO government deposits, whereby he re-
uuires l per cent of the deposit must
be secured by government b. nds. AL
though banks in general have evidenced
a preference to borrow the necessary
bonds for this purpose at the customary
rental Of > per cent per anpum, few
have succeeded. 1t is, therefore, likely
that any increased demand to purchase
bonds will temporarily contribute to
still higher quotations during the next
thirty days, although too much de-
pends upon Congressional action with l.