The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-04
FINANCIAL NEWS
AND COMMENT
Stock Market Turns Generally
Weak in Afternoon and
Closes Heavy.
UPSET BY NEW BANK MAP
Federal Reserve Organization
Scheme Regarded as
Bad Work.
UPSET BY NEW BANK MAP

For the time being anyway the rail-
road rate case lost its prime Importance
In the Wall Street mind yesterday and
the stock market community devoted IT.
self to such deductions Us could be drawn
from the new banking map OF the coun-
try prepared for the Federal reserve sys-
tenn.
In allowing the Interstate Commerce
Commission to be overshadowed by the
reserve bank organization committee the
stock market community seemed also to
forget the supporting influences which had
been furnished by expectations Of a de-
cision permitting the railroads to in
crease freight rates. and for the first time
IN long while the share list seemed
to respond by an exhibition of weakness
to developments regarded as unfavorable
The construction generally placed on the
work of tho reserve bank organization
committee was that II was distinctly ba q
and that II reflected an unchanged po-
litical attitude which was not conducive
to the restoration of financial confidence.
For a while in the early forenoon quoted
values fluctuated fcebly and unsteadily
on very light trading No incentives to
activity were communicated over night
from abroad and the London market
eventually turned heavy OF account of
the pressure Of new security promotions
| on the investment market and the lack
OF public participation In the speculative
situation. THE same lack OF public in
terest here has been one OF the things that
the Wall Street stock market has had to
| contend against, and IL may have been
that yesterdays temperance OF weak
ness was in part result OF the absence
of public support. Another market fac
tor for unsettlement was the decline which
continued In Missouri Pacific OF the an
tO hat i.f fnr .Stu h.
fishing the future OF the property had
fallen through.
The further fall Of the Rock Island
collateral I per cent bonds and the slump
which took place IN the Wabash refund e
Ing Is also provoked tendencies toward
weakness elsewhere. Much curious inquiry
was addressed to the Rock Island situa-
ton without dieting any Information.
Rumors were current that the Rock Isl
and Company interests were campaigning
for large preferred stock issue to 60
ahead Of the railroad common shares con-
stituting the collateral for the per cent
bonds. but this hardly seemed sufficient
to account for the persistent fall OF the
bonds The movement of this security
has begun to cause apprehension that a
worse state of affairs exists in the Rock
Island organization than has been sup
posed. In the afternoon there WAS A
steady supply of stocks In all directions.
Although selling was not heavy pressure
was sufficient to carry prices sharply
down all around and the close was made
at about the lowest levels of the session.
disappointment would be a mild word
to express the feeling with which the
announcement of the reserve bank organ
iZatlon committees work was received,
and ii was this which more than any
thing else was reflected In the final de-
velopment of stock market weakness The
share list had he'd UP wonderfully well
against all manner OF discouragements,
especially OF a political nature, and 1t
Is reasonable TO assume that the considera-
tons which came uppermost yesterday will
not last long. Nevertheless, il was dis
heartening 10 the banking community TO
have matters Of such great dellcacy and
moment handled In such n clumsy and
unIntelllCent fashion as was denoted 10y
the districting of the country for the re-
glonal reserve banks.
The effectiveness of the Federal reserve
plan does not depend much upon the
delimitation OF the reserve regions or the
location of the new central banks as long
as the principal banking centres are it,
cluded, as they have been. Besides n good
deal more depends on the administration
OF the new system than on its geographi-
cal description. Yet the workings OF the
new system cannot be helped by the job
of districting which the organization com
mittee has done, and the task of estab-
fishing the new banks is not facilitated by
the resen'ments and 1ealousies which have
been inspired. to say nothing of the ra-
tional criticisms which may be directed
against tho report Of the committee.
In particular some Of the cities Sc
lected for the establishment of Federal
reserve banks have no title from their
commercial and financial Importance to
anything more than branch banks. Again.
the way In which banking areas. well
defined by the customary course of bust
ness. have been carved UP 20 enable weak
regional banks TO be established is ridicu-
lous. Altogether the conclusion was
reached that the organization committee
had done what ii could to stultify the
Intelligent purpose of the Federal reserve
act and had exhibited In 70 doing a mar
vellous Indifference to anything hut the
dictates OF political and personal infiu-
ence.
Naturally enough such a conclusion
was not conducive to optimism At the
country's financial centre. where perhaps
more than anywhere else signs have been
awaited of evidence that politics was in
process of conversion TO sanity. The local
banking community felt like congratulate
ing the city and state on its escape with
a whole skin from the committees labors.
but It did not like the results OF those
labors generally. What IL more II would
not even pretend that u liked them, and
IL was certain that the country AZ "A
whole would like them less. The kilograms
which began to be received IN banks from
all parts of the land indicated quite
clearly that the organization committee
had provoked a vast deal of discomfort.
About the only expressions OF approval
which were noted came from cities to
which Federal reserve banks had been
very curiouSlN and uueNpertedlV assigned