The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1914-04-29
PRICES ADVANCE
ON War NEWS
New York Market Up on the
Possibilities of Peaceful So
luton of Mexican Problem.
DELAY IN NEW SYSTEM
Commercial National Tells of Task
Confronting Treasury Department
in Enforcing Reserve Act.
Nv w. sTEALEY.

tits a war market and until there is a
definite settlement OF the Mexican EN-.
broilment stocks promise to be guided
by news of this character.
Yesterday possibilities Of a termination
of hostilities was made a bull factor ano
there was a general advance IN prices
onlv Missouri Pacific falling to respond
steel, in spite OF the unfavorable re-
port which the market anticipated
grained nearly a point closing at & Ca
madam Pacific gained five points, ciosinG
JsiE; Reading three points, 1ezis and
Union two points, 15zb
Mexican Petroleum. which closed sly
Monday, opened at IS yesterday. dropped
10 50. and closed 5I7S SoUthern Pacific
was up two points
The cause of decline in Missouri Pacific
probably was because notes will be re-
newed at higher interest rate and the
company still win have the problem pro-
viding for assessment on its Wabash
HOLDINGS and for future requirements OF
its own. Possibly it may decide to let
Wabash go.
The United States Steel Corporation
yesterday declared the regular l-2 per
cent quarterly dividend on the common,
and 81 in the preferred. regardless of
the unfavorable report given out on earn
lngs during the quarter ending March 81.
The net earnings amounted to 1884, 3S1
against S23036, $40 in December 81 quarter,
and $s4426S sol in March 81 quarter, 1913.
The decrease, OF course. is due largely
to the fact that the railroads are unable
to buy equipment Increased railroad
rates would help Steel as much as the
average railroad stock. 1t is apparent
that Steel cannot continue to pay existing
dividends on its present rate Of business.
Local stock Market.
Trading In Washington Gas and Rail-
way preferred featured on the Washing
ton Stock Exchange yesterday.
Two hundred shares of Gas stock in
twenty-five share lots sold at so. In odd
lots 155 shares of Railway preferred sold
4I-2ag.
Ten shares OF Capital Traction sold
IO0I-S
Merganthaler was strong at rs. twenty
Two shares being sold
Bond sales were confined to Potomac
Electric consolidated IS, three 1000 bonds
going at 80 81.
Delay in Reserve Act.
In a statement given out by the Com
mercial National Bank an explanation Is
made of the delay in appointing the Fed
eraI reserve board and putting the new
currency act in operation.
THE work is being done carefully"
says the bank. lin the effort to form the
best organization possible and to provide
the new discount facilities With The least
possible delay. II is no easy task, how
ever, to organize twelve great central
hanks which must also operate branches.
all Of which must be fully equipped to
handle large volume of business. Be-
cause of the vast amount of preliminary
work which has to be done, it is impossi-
BILE to say whether or not the Federal
reserve bank will be organized through
out the country in time TO aid in the
heavy financing of the crop-movIng
period
THE indications are that nothing will
be done about formally opening the banks
until the whole machinery has been in
stalled, so that all The twelve FEEDER Il
reserve banks can begin business stimuli
taneously in different sections of the
United States.
THE suggestion has been made in
some quarters that the Federal Reserve
Board might find it expedient to have
these banks at first perform only some
of the functions for which they were
organized. In other words, the PROPOSAL
has been made that it would be possible
TO organize the reserve banks 10 trans
- act only at the start a rediscount bust
ness and not to assume the larger or
ganization which would enable them to
we'll However this may be, it NAV be
said that the whole matter will be taken
up by the Federal Reserve Board as soon
as President Wilson makes the appoint
ments and the board is able to get down
to serious work
There is no doubt but that this inter-
esting experiment in American banking
is being watched with keen interest by
students of banking and finance through
formation of banking methods here as
shall bring the American system into
more or less conformity with the great
central banking systems OF Europe. 1t
is too early yet for any one to tell just
what the result of these changes will be-
but. speaking broadly, it may be said
that the day is not far of when, as a
result Of the larger privileges offered by
our new currency system. II will be pos
sible for banking Institutions of the
United States TO branch out for classes
of business which it was never possible
for them to conduct successfully under
the old order of things.
AFTER the new system is running
smoothly, there is reason to believe that
the larger banks and trust companies of
the United States will extend their ac-
tivities into foreign fields, so that IT will
be possible for them to handle a vast
which is now being turned over by
American business men to foreign insti-
buttons for the simple reason that, under
the present order of things, there are no
American banking interests established
in foreign fields competent to handle such
matters.
zone Of the most important changes
(which will be brought about Immediately
has to do with the rediscounf facilities
offered by the new Federal reserve bal INKS.
IT viii be Of immense advantage for the
700 or 5000 banks which hayex already
aislsd themselves with the newssystem
% save Bank to apply to for redis-
STARTING privileges. There are a num-
~ OF problems which have to be worked
81 n correction with the establishment
= .ais nFv banking system. and while 1t
3 4 E@sg .ge sometime to effect all these
changes. ere is no doubt but that they
VIII be highly beneficial in the end
1T is nor too much to say that the
proper organization of these Federal re-