The Washington herald., 1914-03-27
STOCK MARKET
Weak AND Dull
Steel Is Poor Feature. but
Pennsylvania and Pan
Handle Gain.
LOCAL BANKS REVIEW
Commercial National Optimistic on
Business Conditions and Increases
Quarterly Dividend.
LOCAL BANKS REVIEW
BY w. sTEALEY.

Quarterly D1voeno.
By w. sTEALEY.
The New York Stock Market yester-
day closed with prices close TO those OF
Wednesday.
The most important weakness was in
Steel, which closed at GO 81; fractional
loss.
The present stock market paradox was
witnessed by a gain of 31-2 points in
Pan Handle and a fractional gain in
Pennsylvania.
Reading was firm at 165 3-4. Union
gained fraction. closing at l5s rs.
The opening was dull and uninterest-
ing, but generally lower, and before long,
as the buying demand seemed very poor,
pressure was exerted by the professional
element on Steel and other active stocks,
under which prices receded all along the
line.
The very discouraging statements OF
earnings being put out by the railroads
is perhaps at present the most depress-
ing factor, and causes demand for stocks
TO be reduced to a minimum. In addition
to this. the rally which took place last
week eliminated a part Of the short in
terest and the market received less sup
port from that element
There was, as usual, no liquidation
brought about by the decline, however,
and prices later showed a tendency to
rally in a feeble way. Small net losses,
however. were the rule as result of the
days trading.
Local stock Market.
Railway again featured on the Wash
ington Stock Exchange yesterday, but
the trading was confined to the bonds
Of the company.
In denominations of 1900 and $500 as
sales amounting to $500 were recorded
prices ranging from So to So.
Two 5000 Potomac Electric SIS sold
1oo1-4.
The principal stock trading was in
Washington Gas, fourteen shares selling
50 Lass
One share of District National Bank
stock sold at 1I2, six shares Of Capital
Traction at los. and ten shares of Merg-
enthaler at 215
Commercial Bank Optimistic.
The Commercial National Bank of this
city has sent TO stockholders its digest
of stock conditions and financial out
look for April.
While business Is quiet in this section.
the Commercial finds a firm undertone
.-Un lie chances favoring a revival.
BlE.rrss men are declared to be taking
a. g mistic view owing to the Presi-
!ogL 1T supporting a disturbing cam
r-,lE1 md the fact that the new cur
nav act materially will assist a re-
The Commercial says:
1T is apparent that President Wilson
will not support a disturbing campaign.
or one calculated to increase the problems
Of those who are trying to make up for
the hardships encountered a year ago.
More will be heard of those plans later
on. but in general it is safe to say that
the campaign for antitrust legislation.
whatever il is, will be conducted along
proper lines, with due regard for the
welfare of vested interests and the great
shsreholding classes.
After the new discount facilities have
been provided for il is probable that there
will be a trade revival and that senti-
ment will improve. This means a great
deal for the financial and commercial
markets have been so long influenced
by sentiment as to make it highly i'm
pOrtant that people should TOOK on the
bright side of things. and should disre-
gard the pessimism of those who believe
that changes are detrimental and not for
the best interests of the country.
AS a matter of fact, the country is
adjusting itself rapidly to the new con-
ditions brought about by the lowering of
the tariff duties. In the same way il has
accepted the income tax with some irri-
tauon. although there has been nothing
TO indicate that it was really much of
burden. With so many new laws to
provide for, however ii is little wonder
that the people should express some mis-
givings as to how the experiments would
work out and just what the ultimate
effect would be.
considering all that has been done
since the present administration came
Into office, 1t is quite remarkable that
there has been so little disturbance
The fact is that the people believe in
President Wilson and in his great good
sense, which has been illustrated re-
peatedly during the first year that he
has been in office. The last twelve
month period, in a legislative way, has
been quite remarkable both in the i'm
portance of the new laws placed upon
the statute books, and in the ready sup
port afforded the President by the peo-
pie Of the country, regardless Of party.
Although the prevailing methods will
probably be changed in important de-
tails after the new currency system takes
effect. there Is no reason to believe that
the Federal reserve board will adopt
measures that VIII be in the least un-
settling to business. 1t is perfectly well
known that, for q time at least, the
alton In proposing changes an6> in fore
ing the banks to alter their methods of
lending TO merchants and to others These
things will work out all right in the
end.
There is still fair investment de-
mand, and the buying of high grade
securities is still in excess Of what it was
last year. although not up to the volume
Uf last January. Municipal bonds are be-
Ing bought by people who never took
them before. simply for the reason that
they are tax exempt, and in most in
stances are readily marketable. A great
deal OF fresh financing will have to be
done by this class of borrowers within
the next few months, irf order to take up
the other short term issues which were
put UP a year ago during the period
when il was impossible to secure bids for
long-term bonds.
These obligations can probably be re-
newed II the loans are offered in reason
able amounts and the terms at which
they are put out show an income return
of between 5 and per cent Investors
generally are still asking for a fairly
high income return, and there is no doubt