The Washington herald., 1914-04-24
MEXICAN ISSUES
DROP ON MARKET
Pctr6'erm and Smelters Have
Severe bsca6es, but the
Leaders tod Well.
.PROSRERETY" IN SIGHT
War to Have Stimulating Effect Upon
Business and Boom Times Are
Expected to Result.
.PR0SFEgETY" IN SIGHT
By w. sTEALEY.

The New York Stock Market yesterday
closed with the leaders fraetionally OF.
and sharp declines in issues directly
effected by the Mexican war.
Canadian Pacific also was weak on for
eien selling. A low point Of 1ss "a was
reached, the stock closing at a slight
advance.
American Smelling dropped from Sc to
eo1-2 on the company's closing its plant
in Mexico. Mexican Petroleum went from
e41-4 to 90 "a
Can showed strength on the war news.
the stock closing at 3. gain. Southern
Pacific closed at ss7-S q loss OF nearly
q mt
5ssI and Reading sustained small
IS
important development in the gen.
So financial situation yesterday was the
her rise in foreign exchange rates to
over 47I-2 for demand sterling. This
was largely the result OF the heavy
foreign selling Of stocks for Paris, Berlin.
and London accounts, being followed by
the sale of nearly 5000 more.
The present high rates for foreign ex-
change makes gold exports to Paris i'm
minent No important disturbance is
expected to develop however, owing to the
and the smaller volume OF general busi-
ness.
BOcnI Stock Market.
Mergenthaler was the principal fea-
ture of the trading on the Washington
Stock Exchange yesterday. Twenty-Five
shares Of the stock were sold, 2l5a215 Is
Capital Traction sold fourteen shares,
100 rs and Washington Gas 81 7-SaS2.
Five shares of Riggs National Bank
stock sold at $50; one share American
National Bank, ls2 H.
Graphophone preferred brought Is.
Bond sales were confined to two 800
Riggs Realty IS Qong). at 10e
Return to Prosperity.
There is but one view in financial cir
cles on the effect of the war il it con-
tinues II undoubtedly will have a stim-
ulating effect upon business and will set
a great deal of loose money in circula-
ton There will be boom times, so to
speak. which should find their way into
all channels of trade, including the un-
employed.
This of course. cannot be deemed
healthy prosperity such as would arise
from good crops, excellent money condi-
tions and an absence Of destructive leg
islation. A reaction. OF course, is in
evitabls. but that is too far in the future
for speculation.
The main point is that the country ap-
pears on the eve of a return to the evil
dences of prosperity regretable as il is
that such a condition should come
through war.
Mexico, of course. cannot obtain a
foreign loan and will be unable to carry
on any orderly campaign. After a few
months the war will resolve itself into
police duty which on the whole will
fall little less expensive to this country.
Complications with other nations is the
most important factor. The low element
in Japan. for instance, would have forced
a war with the United States any time
in the last five years had it not been for
the craftsmanship Of the ministry and
its control over the Imperial Diet The
latter, of course, have been restrained by
a national debt Of one billion and a quar-
ter dollars with little left to tax other
than fanaticism.
Virginia Railway and Power.
Virginia Railway and Power Company
is continuing to show gains in its gross
and net earnings and also in the surplus
applicable to dividends. For the nine
months ended March u. 1914. earnings
applicable to dividends were at the rate
OF a57 per cent a year on the S1l 49,
200 of common stock. after providing for
annual dividends cf III per cent are being
paid On the common stock and the COM
pany Is earning its preferred dividends
about two and three-quarter times.
II Is reported in foreign exchange
circles that notwithstanding the current
high rates for exchange, particularly the
rate for franc checks. which are within
l-a Of the gold export point nc shipment
Of the metal will be made unless ii is
agreeable to the Treasury Department
officials 1t is even rumored that an in
ternational house has sounded the
government on this matter and received
an answer disapproving OF any ship
ments pending the present critical situa-
tion in Mexico.
The North Carolina Corporation Com
mission has made an order requiring the
Southern Express Company to put into
effect June 5, a new system of rates
applicable to intrastate express business
based on the interstate rates now in
force.
The new North Carolina rates, how
ever. are modified in some respects to
avoid increasing the North Carolina rates
on various commodities to bring them
up to the level Of interstate rates
Commission appointed to redeem ex-
cess-farc coupons on fares paid to- Ches-
apeake & Ohio in West Virginia while
two-cent fare law was in courts. con-
sidered 1900 claims and paid out Ss5o,oo1
The consolidation Of the Seaboard Ma
tional Bank and the Bank of Norfolk.
Inc. has been approved The capital
stock of the ae ha nh 10 S9n0