The Washington times., 1914-05-10
IN LOCAL FINANCIAL CIRCLES

Two announcements were made dur
ing the last week either of which, un
der normal conditions would have
caused A rise in the securities markets
of the country and tended to improve.
the general business situation One was
President wilson's selections for the
Feieral Reserve Board, the other the
crop report issued by the Department
of Agriculture.
A counteractant for both OF these
bullish influences, however. was found
in the portentous Mexican situation.
Just as the program for mediation ap-
peared 10 present prospects OF sue
cessTUl cuImination, Developments in
Mexico took place which have brought
this country again to the brink of in
tervention. The result has been that
the New York stock market closed yes
terday with both railroad and industrial
issues on a downward trend.
Financiers from al sections OF the
country, regardless OF political affilia-
ton. have had only words of praise
tor the Presidents candidates for the
board which will direct the nation
financial system.
The announcement of the selections
dissipated all fear that theorists would
De cIOaked with the responsibility OF
inaugurating the new system. MessrS.
" arburg. Wheeler and Harding are ma
tional figures in financial circles, ana
each mas not only proven himself nigh
~ practical, but is recognized as a
student of his profession.
Almost simultaneous with the pup
lication Of these selections. came the
cr0n report, predicting the greatest
wheat yield the country has ever
known. With perfect weather condl-
tons obtaining throughout the country
and the crop so far advanced as prac-
tlcal.y 10 preclude serious setDachs'
the report estimated winter wheat re-
,l1rn oF S3D 90 90 bushels.
This Iigure exceeds the banner crop
Of 1915 by lM.oOo.0yJ bushels such d
harvest means wealth for the iaFIleI'
with its reflected benefits fOr all lines
Of business: it means hauling for the
railroads, and hauling which Will TAX
the car supply But stocks dId not
advance hey tended almost iWme-
diately 10 slump.
Reports from Mexico told OF the
strained situation with the possibility
If an atta.k upon Vera .:ruz and the
immediate need Tor more troops. TINS
was the principal cause Of the sliding
market.
Intervention, or decIa ration Of war
bv Congress. many students OF busl-
ness conditions assert, instead OF press
iny the market. would serve as a bullish
influence II is only the uncertainty
as to what is to be This country p"l' v
these critics declare. that is having thls
disturbing effect.
Trade reviews Elblt an IIItpi'N'.N FF''''
nfnt in commercial md Industrial chan
rels. but actual progress - SOW. The
gross carlinGS of railroads reporting
for ADril were l9 per cent less IMAM
last .,ear Though this is dIsc"uraginS
the decrease is 80 much less imam cur
ing January and February as L" h"iu
I0r-L s.r"n'Ira ''-'I.sGt.
The dul,ness is probably best Indicated
by the id'r ca! S'In9!y. The fortniIhtiy
bulletin just Issued hv the american
Railway Association -ives a net sur
Dlus of Idle cars Tor :he United States
II sI9 on ATril L., IN 4Ecreas" Of l6 olO
On the strength Of the excellent croD
report. trade expansion Eas been noted
10 slight extent DIrti"ularlE in the
West. Industrial lines however. do not
reflect this cheerful feeling to any per
cent'ble degree rho tendency is to
hr.. frpquent'c and IN sman lots. Man
uractUrcrS are not accommodating stocks,
,.. % 80. sim 0lW ""''U'. for actual wants
European conditions are practically az
unsettled as those which cyst r"re anh
money 70 extremely tight IN severH' OF
he leading foreign C"nterE. The foreign
rate of exchange has become so high
os to attract already gold from the
United states.
VIII the hanks OF this country con-
tinuaUv e#inin" in deDosrte the gold
eXDorfa alton wOIild doIhtlesS hav"
rep ~hed larger u~oDort nne in recent
woeks. bu' for IN" uoee'b'lfv that thc
Federal GOvern"e"t. facing a nroba-
hil!tv Of war. .ui"h' he called upon to
unIerfake h"rd isvues
Manv trader" of eVnerierCe believe
that the low rrriCe levels have now been
' cached and further changes ar" looked /
tr fOr an advance. The prevailing i'm !
nressi0n howe"er is that there will lfe /
no raDd rise before July or the early !
far
CONDITIONS which obtain arc rousid"r"d |
'rsit" "i"''lHr tC t''c situat on IN 1fn: " hon
a PROSPEROUS crop outlook failed tn dis
turb the duIiness until the late sum-