The Washington times., 1919-09-29
BoerSianer'S
Comment
on Business
= R0ERGIANER.

BY nOELeG AEA4NL4Ae
The world at large and Americans
| in especial are Injured to shocks.
/ Wars horrors and sUbversiOns have
hardened the masses and the classes
alike. Short OF a terrorists' reYolu-
tiOn nothing could happen which
would upset any public for longer
than a few days. 1t would seem that
a strike, however potentially serious,
IS now looked upon as a street row
was regarded before the war.
Another explanation is money pleth-
ora Everybody who is popularity
supposed to be anybody has money;
has it to spend, and above all to ven
tUre. Apparently, Mr.. COmmOner Is
prepared to embark upon any sort Of
an aleatoTy enterprise. This is at
tested by the difference between the
first grade bond market and the mar
ket for preferred shares which yield
a high dividend rate and have a
speculative value; or, better, specu-
lative possibilities.
Corporation and other mortgages
well secured, but assuring only a
modest return, are not nearly as
easily fioated these days as are
preference certificates Offering per
cent or more, together with the
GAAosAALg u a IlEC OL LllE CEA NAAAGeENN1r
The speculative prOpensity-for
such il isis rather encouraged, not
deferred, by the state of the money
market as such. Currently the Mid
die West at least should give evidence
OF the seasonal requisitiOn on II for
CrOp-mOving purposes; for of late
years the Midwest has financed the
crops without the aid of the East.
Although more money than ever Is
needed for the financing Of the har-
vest, the monetary situation in Chi
cago and other Western Reserve
cities is much better than comfort
able; indeed, bank deposits are today
at maximum.
A cOgent and perhaps a more con-
vincing proof Is the present cOndi-
ton Of the Federal Reserve Bank Of
Chicago. The reserve Of this institu-
tiOn (of the Seventh district) stands
at IS per cent, the highest since the
doors were opened. Moreover, 50
skillfuIly has the bank been man
aged. in a territory flush OF funds,
that 1t has loaned literally to other
Federal Reserve banks.
A pink-eyed Optimist. in quest of
any specious sign which may ft his
fixed notion. has hit upon the GER
tainty that to Secretary Glass idea
OF defeFring interest payment from
foreign debtors is due the betterment
in foreign exchange rates. He may
as well contend that tOday's action
Of the government Of Honduras In
ordering a six months moratorium
on bank note obligations down there
increases the intrinsic value Of Hon
duran currency.
Foreign moneys are gradually bet
tering in the American market be-
cause American exports to Europe
are decreasing and European exports
to America are increasing; not to
an alarming extent either way, but
sufficiently to give the pound near
and to rescue the franc,
lire and mark from an impoverished
depth.
The steel strike viii, Of course,
further these trade tendencies; the
longer IL lasts the more accentuated
Will be the trends. Within the week
a South American importer had
twenty-One orders on cotton fabrics.
He pUrpOsed placing the orders in
this country. The steel strike dis
or frightened him. The
demands were cabled to Europe;
some Of them to Germany.