The Washington herald., 1914-02-27
STOCK MARKET
PRICES Higher
fractional Gains Noted on
More Important
Issues.
LOCAL BANK OPTIMISTIC
Commercial National Believes Condi-
tions Indicate Trade
Revival.
By w. sTEALEY.

, By w. sTEALEY. !
The New York stock market yesterday
closed stronger, copper. Baltimore and
Ohio and Northern Pacific being the only
o important stocks falling to make gains.
Steel, Union Pacific, Can, Great North
ern and Chesapeake and Ohio, all made
fractional gains. Reading opened at 165 3-S,
but closed at 164 "a, Wednesdays price.
! The Mexican situation is regarded as
more OF factor in the market than any
. Thing else. With the tariff and currency
. questions settled and confidence in the
Presidents ability to prevent drastic cor
pUration legislation at the Capitol, the
Mexican trouble is the only big element
of uncertainty and disturbance. With it
removed there is little doubt that the
financial and industrial work of the ma
tion would be i'm a position to expand.
A feature of the market this week has
been the advance in kresge Stores, which
closed at l02.
The initial transaction on the exchange
was 100 shares at % on September IL,
1912. The low record, since the listing
on the exchange, was at IS in 1872.
The rapid rise in the stock Of seven
points in less than two weeks has no
doubt been influenced by the statement
of earnings for 1913, which showed 1467
per cent earned on the S5O0O,O00 common
stock. An initial dividend of per cent
was declared OH September l6, 1913, . per
cent being payable October l, 1918, and >
per cent on January /, 1914. The amount
of any subsequent dividend on the common
stock has not been discussed SO far. al
though an increase in the rate which will
place the stock on regular basis is
looked for in some quarters.
Local stock Market.
Bond sales on the local stock exchange
yesterday aggregated $4,000 the major
portion of this amount being in Washing
ton Gas 5s at los. Railway Is sold $1,OOO
al 50 and $l,GOO at 81 1-2. Anacostia and
Potomac Railroad 5s sold $1,000 at loo.
The stock of Railway preferred sold
at S. common 81 3-3 and T7-S.
For the first time in several months
there was a demand for Washngton-Vir.
ginia railway stock. Twenty-Five shares
Of common brought 40 and twenty-five
shares of preferred 20. Fourteen shares
of Capital Traction brought Ito, one
share. 100 l-2.
Thirty shares of Mergenthaler sold at
2i5 81, seven shares, PIG IA.
View of Commercial National
- In its March digest of trade conditions
the Commercial National Bank, OF this
city. takes an optimistic view of the
business situation, both in the vicinity
of Washington and the country at large.
Confidence is being restored generally
throughout the United States. says the
statement, and sentiment regarding bus
mess and politics is certainly more hope
full than it was a few weeks ago. The
banks are in excellent shape to make the
change since money is now plentiful, the
tension of a few months ago having COM
pleteIy disappeared. That does not mean
that money is not in active demand. FOR
the inquiry from many quarters is broad,
and as business improves mercantile re-
quirements will enlarge. But with the
country's bank position as strong at it is
today it will be an easy matrer for the
banks to pay their subscriptions for stock
in the Federal reserve banks and at the
same time to make fresh deposits of re-
serve money called for by the provisions
Of the new law. The success of the new
currency system is easily assured, and
although it will lead to some radical
changes In the methods of doing business,
such arrangements as will be required
have in a large measure been provided
for.
Speaking broadly. it may be said that
the country has not begun to grasp the
real significance of this change in our
currency and banking system. II gives
to the American people the facilities
which bankers and currency experts have
for years been asking for as a necessary
protection against panics and the periods
of unscttlement to which the American
money market more than any other
money market in the world has been SO
often exposed. More than that, the new
system will be effective in creating a |
bread discount market in the United
States, and in enabling American institu- |
tons to compete for profitable business in
foreign trade. to do which. under the
restrictions of the national bank act was
never possible.
Increased optimism has been naturally
reflected in broad investment buying of
securities. This movement within the last
month has reached unusual proportions,
both in this country and in Europe, |
where the relaxation of money rates has |
been an impOrtant factor, causing indf-9
viduals-, and Institutions to employ idle |
balances in the purchase Of high grade |
securities. There has beeen4a good deal |
of reinvestment buying by people in this |
city, and it looks as if the movement
would continue for some time to come. |
it does or not depends largely |
on the political developments and the
possibilities of some sudden change in.the |
in Mexico. There is no doubt, |
however, but that the investment markets
are on the upgrade, and that people gem
orally are more favorably disposed to-
wards Investment securities than they
have been at any time in several years"
The forty-seyenth annual number of
Poor's Manual of Railroads comes from
the press with 2,O52 pages. about 800
pages more than the last previous num-
Der and with new features, among them
whether interest on bonds
Is payable without deduction for the in
come tax The new volume fully sus-
tains the high reputation of this pubIi-
cation for completeness and convenience
Of arrangement
Like many other securities of their
kind, Seaboard Air Line adjustment IS.
As and preferred stock went up
'apidly last MONTH. but are now quiet and
leavy. The company is showing about ,
per cent increase in gross earnings /
,ver last year. Passenger traffic to
slorida recently has been of record size. ]
rhe double track completed on the main /,
inc in 1913 has greatly relieved congested
conditions.