Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-02-27
STRONCEFFORT MADE
Toby BANK STOCK
Increased Bid Recorded on Exchange
for National Metropolitan
Shares.

National Metropolitan Bank stock,
! which was the feature of the trading
| on the stock exchange several days
ago. when the bid advanced from 1855 to
1881, was unusually strong again today.
| The broker who was the buyer of the
stock when the advance referred to was
recorded raised the bid today from 1873
to 1921 during call without bringing out
any stock under 205, an increase of five
points above the last asking price. After
call he bid 1873 for the stock, but it was
quite evident it was held considerably
above that figure.
The amount of business transacted to-
day was quite light. The only bond
transactions were the sales Of $1,000 OF
railway and Electric As at S2ss, an
eighth of a point advance over yester-
days best selling price, and the sale OF
$1,000 OIL .apital Traction 5s at 1o9
Capital Traction stock sold, odd lots, at
no. and Lanston sold seven shares at
81.
The monthly digest of trade conditions
Of the Commercial National Bank of this
city contains the following reference to
the new banking system:
Splendid progress is being made by
the special committee having in charge
the ors anization of the new federal re-
serve banking system. There are many
details to be arranged. however. before
the actual work of installing the ma
chineHy can be begun, even after the To-
cation of the various federal reserve
banks has been determined upon. Nearly
all the national banks of the United
States have signified their intention Of
organization is completed it is certain
that large number Of state institutions
will apply for admission.
The banks are in excellent shape to
make the change since money Is now
plentiful, the tension of q few months
ago having completely disappeared. That
does not mean that money Is not in active
demand. for the inquiry from many quar-
tiers is broad, and as business improves
mercantile requirements will enlarge. But
as it is today 1t will be an easy matter
for the banks to pay their subscriptions
for stock in the federal reserve ban Ks
and at the same time to make fresh de-
the provisions Of the new law. The sue
cess Of the new currency system Is easily
assured, and although 1t 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 Sl3nlncance OF this change IN our
currency and banking system. 1t 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 unsettlement 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
broad discount market in the United
States, and In enabling American institu-
lions to compete for profitable business in
foreign trade. to do which. under the re-
strictions of the national bank act, was,
never possible.
1t will take several months after the
system has been installed to tell just
what the important changes will be or
to what extent the member banks will
avail themselves of the new privileges
afforded by the law for charging the
scope of their activities. The expert
ment is being watched with keen interest
by currency experts in all parts of the
world. and it is significant that fears
have been expressed in Europe lest the
new benefits enjoyed by the banks of
the United States should work to the
detrinent of foreign institutions, which
have never before been confronted with
strong competition from this side.