The sun., 1919-07-14

higher. The money rate question as q
market factor has again subsidized for
the time being, while the bank state
ment should show Improvement over last
week"
z. w. Wagner & Co. say: "our bank
ers have spoken rather plainly, and II
Is not good business to carry large
lines OF securities on credit where there
IL already evidence of record loan ex-
pansion, and more particularly when we
face necessitous financing and Of stu
pendous amount. Those espousing the
constructive position In the stock mar
ket face sporadic flurries in call money
concurrent with calling of loans. 1t
would seem, therefore, good judgment
for those who hold securities on credit
to prepare themselves for increased mar
gin calls with the view in mind to the
averaging of purchases II the opportu-
nifty presents Itself. The trade situa-
ton has improved materially within the
week. The Steel Corporation untitled
tonnage statement shows an increase for
the first time since last October. and
business Is flowing into the steel con-
Germs at q record rate"
J. Robinson-D Dun & Co. say: 1.-THE ac-
ton OF the stock market during the past
week has given more encouragement TO
those committed to the bull side than
at any previous time. In the recent
| upward swings there were no obstacles
| to overcome, whereas during the period
| under review the market was called upon
TO pass through 4 series Of most erratic
money movements, which had only n
temporary hating effect upon specula-
tion and investment. Despite the fact
that some OF the professionals have ex-
pressed themselves as opposed to the
trend OF the market. we must continue
bullish because the public is still In con-
troll and is showing no signs OF falter-
| Ing In its attitude. Stocks are still be-
ing purchased by those who have made
| fortunes in the past and this great buy
/ ing power Is making itself felt each time
a reaction sets In"
wrenn Bros. & Co. cay: Call money
rates continue to rule at restrictive
! levels, and in spite of the fact that trad
ers in stocks have become so accustomed
to these rates as to be rather Indifferent
| to them. their Significance Is as previ-
ously defined, and their influence Is
bound to be depressing. The public de-
mand for stocks remains excellent, but
the underlying situation Is becoming
| somewhat less bullish. Sterling exchange
has dropped to n new low record OF
ASK, rejecting the growing difficulty
which Europe Is experiencing In her ef-
|
exports, and incidentally this signifies
that the need of extending vast credits
to foreign peoples is immediate and
pressing II we are to maintain the great
volume of our export trade. They can
not buy in such quantities unless We do
extend the credit, and for US to do this
! with the money market tight. time loans
on a straight 6 per cent basis and the
crop movement coming on. is to say the
least extremely difficult.
Meanwhile at the very time when
additional credits are needed We are
bound to see a substantial amount of re-
funding of foreign war loans done in this
country. The announcement of a Cana
dian refunding Issue of $75.o00.o0 to be
floated here IL but a foretaste, for Can
ada is more nearly self-supporting as TO
capital requirements than many Euro
pean nations. Exceptionally heavy cor
porate financing Is going on. and this,
while It will place our corporations In a
strong financial position for period OF
months. will nevertheless tend stimuli
taneously TO deplete the investment funds
which might otherwise go into stocks"
Clark, Childs & Co. say: 1T is one
thing to be Of a definitely bearish opin-
ion as to the markets. but quite another
to adopt for certain reasons a cautious
position, which latter is the one 1t seems
| to the writer n Stock Exchange mar
should assume to-day. One cannot have
the least doubt that, with the assurance
of satisfactory crops, continued strength
in commodity prices and a large distri-
button of merchandise. both staple and
manufactured. the country is going to du
a record gross volume of business.
There are. however. from the security
market standpoint the same important
qualifying factors which We have felt II
necessary to bring to the notice Of our
friends constantly OF late, most I'M
portant OF which Is the overextension oi
bank loans in many lines Of business
through the country. 1t has brought
about a situation that must make for
great conservatism In the stock mar
kets, for II Is one that may at any time
cause the member banks of the Federal
reserve system to institute a most vigor-
Gus censorship OF the uses for which
funds provided by the ordinary process
of rediscounting are employed. 1t Is
essential that to speculative pace be
moderated. and z re are reasons for be-
lieving that 1t W.. De. voluntarily or with