Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-02-25
BY I. A. FLEMING.

BY I. A. FLEMING.
Gov. Harding of the federal reserve
board has obtained a promise from. the
democratic leaders in the Senate to
permit the proposed amendments to the
federal reserve act that have been ap-
proved by the Senate banking commit
tee to be taken up for consideration on
tomorrow, whether the Senate had nm
ished at that time with the revenue
measure or not.
Chairman Owen of the banking COM
mittee has assured Gov. Harding that
there would be no opposition to the
various amendments, and with this as
surance the revenue bill is to be laid
aside temporarily.
The amendments are intended to in
crease the gold holdings of federal re-
serve banks and to give the board
larger control of the gold supply or the
nation. Also to lower the reserve car
ried by reserve banks and to increase
the immediate reserves with regional
banks.
On November IT, 1916, the cash hold
ings of the member banks were about
1915, 100000. Under the proposed
amendment of section 10. $250.000.00O OF
In1S amount "Oulu Ue II ~
the regional banks. The amendment
also provides for per cent Of demand
deposits as a till reserve, although at
one time the board considered giving
the bank the right to be its own judge
as to till cash.
The control of gold by federal re-
serve banks in times of abundance viii
be liable to decrease the danger OF IN
fation and at the same time will enable
the country to part with large sums OF
gold. when the tide turns. with less In
convenience or shock to trade.
The country's stock of gold is NOT
used most effectively when scattered
all over the country. but the greatest
good will come from concentration In
federal reserve vaults where it can be
protected when not required and ex-
tensively used when needed.
There are other amendments calculat-
ed to uphold the power of the federal
reserve board and unity the currency
system.
The House rules committee has prom
Used to take up the amendments early
next week.
Gov Harding looks upon their pas
sage as most important.
Wall Street Market.
The public is out Of Wall street; the
goose that laid the golden egg has been
laid away and now the professional
traders may scalp back and forth with
each other. taking their fractional
profits and paying their losses. The
great bulge of 1856 is a thing OF
memory only; the predicted great earn
ings Of many corporations have gone
to join great expectations that have
failed.
Hoping against hope that the stand
ard railroad shares would come back
sy,@,
ment of many careful investors to buy
old-time rails. but their ventures have
not been profitable.
Railroads today are in the midst OF
clearing away the worst muddle in
traffic that has hit this country since
poor Roadway Unquestionably greed
has had much to do with the scarcity
of empties, but the blockade of freight
in the east has been serious.
1t would seem as If the interstate
commerce commission might cope ener-
getically with this question. But the
chances for railroad expansion, for en-
largement of systems and for a return
of the good old days are not good, dur
ing the periods of suspended traffic
sheets every time a schedule Is raised.
With the present delicate fnterna-
tional situation the stock market will
not look attractive to the conservative
investor. although there are many
apparent bargains in the list.
Postpone Permanent Financing.
The postponement Of the permanent
financing plan Of the Southern Railway
Company. is referred to by the Wall
Street Journal "as the first important
sacrifice on the altar raised to our
broken relations with Germany"
Seven years ago the Southern Rail-
way Company planned permanent
financing and decided the time I'M
Again. with money plenti-
full everywhere, the plans were carried
to the authorization stage and again
postponed.
The bond markets of the United
States are just waiting until Uncle
Sam announces his desire in the way of
expense money in his campaign of pre-
paration and no matter how many
millions are needed the cash will be
Munitions Exports.
From the beginning of the war to the
end Of 1916, the value of the munitions.
all kinds. exported from this country to
foreign ports. was $966,135,567.
There Is no question but what very
large part Of the prosperity of the last
rev years came from tnls HaHuIactur-
ing activity, this and the high prices
for all kinds of agricultural products.
Local Securities.
There has been considerable trading
in local securities during the past
week; some shifting from bonds to
stocks, with intent to avoid the intangi-
BILE tax, should the conferees on the Dis
trict bill fail to reach an agreement on
Its reduction or postponement. and
decided f1rmness in Washington Gas.
which is again at the high of this
movement at IS bid, none offered save
at higher figures.
In the earlier part of the week there
was also some inquiry for street rail-
way shares, but the threat of another
strike Is likely to keep investors aloof