The Washington herald., 1914-01-20
BUSINESS WORLD
WITH PRESIDENT
Confidence IN Executive
Overshadows Any Rumors
of Wild Legislation.
CLEARINGHOUSE MEET
Old Officers Will Be Reelected.
Changes Under New Law-National
Savings Holds Annual Meeting.
by w. sTEALEY.

by w. sTEALEY.
The New York stock market yester
day closed strong.
The upward trend, which has beer
going on for two weeks, again was en-
phasized.
The Improvement is credited to the at
titude of the President. While it Il
understood that the details of anti-trusi
legislation are not given In the address
which will be delivered today, financial
centers, nevertheless, believe the Presi'
dent personally will maintain a favor
able attitude. This is regarded as al
important for the reason that 1t is the
firm belief of the public that the Presi.
dent completely dominates Congress. and
the food of radical legislation proposed
by Individual members of the Senate and
House to boost their own reflections
has no chance Of becoming law.
Information relative to the status OF
bills these days is to be obtained at the
White House and not at the Capitol
Any uncertainty as to the attitude oi
the President seemingly has been dropped
from the business world, and the mis-
trust in which Congress is held is not
regarded as an important factor.
Prices Are Firmer.
Prices yesterday were firmer fraction
ally at the opening, with buying orders
for foreign account in Steel. Southern
Pacific, and the Copper issues. Commits
sion houses held a sprinkling of orders
but not in sufficient volume to give a
sharp impetus to quotations.
Fluctuations showed the guiding hand
of manipulation by banking interest;
traders added to activity by operating
gingerly for small profits.
From foreign financial centers come
cheerful reports of easier money rates.
Buoyancy was noted in London, where
investment securities were in good de-
mand at rising prices, and consols ad-
vanced nearly a point during the day.
A further reduction in the English bank
rate is expected. At Paris, Vienna, and
Berlin, discount rates were fractionally
lower.
Purchases for foreign account in New
York probably exceeded 5000 shares,
including Steel, Southern Pacific, Cana
iian Pacific, Amalgamated. and Utah
Copper. The purchases were made in
the early dealings and again just before
the close.
Steel common rose from g. S-4 to S. rs.
Bethlehem Steel issues gained fraction
ally. Republic Steel common a point and
the preferred 81
Copper stocks were purchased for Bos-
ton and London accounts. Utah rose
to 50, and Amalgamated crossed 20, while
Anaconda, unusually active, touched
g 3-L Traders were pleased by the gains
shown in the investment stocks. St. Paul.
Chesapeake and Ohio Illinois Central,
Louisville and Nashville, and Pennsyl-
vania were all active and higher. South
ern Pacific crossed 81. Union Pacific
again moved within narrow limits.
Local Stock EXCHANGE.
The feature of the Washington Stock
Exchange yesterday was the trading in
Washington Railway and Electric COM
mon. Fifty-four shares of the stock
were sold 50 7-Sd90. The stock later was
offered at 81. Four shares of the pre-
ferred sold at 30 and a 5000 4 per cent
bond at 50.
Two shares of Capital Traction sold
at HAIL.
Ten shares of Washington Gas Stock
brought s. 1-2 and eight shares of Amer
lean Security and Trust 2e5.
Clearinghouse Meeting.
The annual meeting of the Washing
ton Clearinghouse Association will be
held today. 1t is expected to result in
the reelection of the old officers, Will
lam ]. Flather, president; ]. Gales
Moore, secretary, and the standing COM
mittee, consisting of w. T. Galliher,
Clarence Corson, William ]. Flather.
George w. White, and A. B. Ruff. The
occasion will mark the twenty-fifth an
nual meeting. The clearings in 1855
amounted to s4,ooo.ooo. Last year they
totaled s40S, ,0o0, 600.
Under the new currency act there will
be several changes of important relation
to clearinghouse balances.
After the Federal reserve bank is es-
tablished the president of the clearing
house will present his balance to the
Federal reserve bank, which will debit
the accouts of the debter banks and cred
It the balances of the creditor banks, the
whole transaction being a matter of book
entries, requiring possibly ten minutes of
the head bookkeeper''s time. Compare
this with the work of going to the bank
vault, counting out the required amount
Of Clearinghouse gold certificates hav-
ing another officer or teller certify the
count, making proper entries in the vault
and reserve cash records, sending one or
two men to the clearinghouse, where
further records and receipts are required.
The process is then reversed as the
amounts are paid over to the creditor
banks Three score banks go through
this, or a similar process, every day in
New York alone
The accounting is only a part of the
saving. Clearinghouse currency /certi-
fcates were long ago adopted to elimi-
nate risk and to avoid the counting and
recounting Of large sums of money, to
say nothing of the useless wear and tear
upon gold. To issue these certificates,
maintain a depositary and safeguard it
day and night from within and without,
accounts for no small part of the an
nual expense Of the clearing house.
The Federal reserve bank will no doubt
be a member Of the clearing g-house on
zone side" only, that is, il will charge
the checks 1t has on other member banks
through the exchanges and the drafts
which they hold payable at the reserve
bank will be deposited In the regular
way.
C. & O. Omcfal Talks.
In the opinion of James H. Dooley, of
Richmond, Va, a director Of the Chesa-
peake and Ohio Railroad, business activ-
ity depends largely upon the proposed
6 per cent increase in freight rates
pending before the Interstate Commerce
Commission. Il believe the railroads will
receive an increase" said Mayor Dooley
yesterday.
TT is absolutely essential that an in
crease be granted; otherwise many roads
cannot continue to exist. With per
cent higher charger on\freight the whole
country will be benefited by the better
ment In railroad finances and purchasing
power. and by. election time business in
general should be very active. The mer-
chant on the other hand, would feel but
little the eject of the increased rates.
"Whiie Southern lines are not a party