New-York tribune., 1919-11-24


with which the Senate's rejection of
the peace treaty was received.
How long is this impasse likely to
last? That is the question which is
the chief subject of discussion wher-
ever brokers and traders meet. For
the most part, opinion is that no
great change in the character of the
market Is likely to take place dur
ing the balance Of tho year. Ger
tainly, there seems to be little hope
Of sufficient improvement in the
banking position to warrant the ex-
pansion in stock market loans that
would be necessary to get a bull
movement under way again soon. It
may easily happen that speculative
money will remain reasonably cheap
and plentiful, as it was toward the
end of last week, but that will apply
only 50 long as the markets de-
mands upon the banks are kept with
in reasonable bounds. Moreover, the
public is not likely soon to forget the
experience through which it has lust
passed. So, while the turn of the
year may bring a change, the view
that meanwhile no great speculation
will develop, at least on the con-
structive side, seems to be we'll
founded. AS for the possibility of a
big movement in the other direction.
all that can be said is there is
nothing in sight now to indicate that
it is imminent.
Who IS buying stocks? Ask any
Wall Street man and he will either
answer "the shorts" or simply
'they." But the shorts buy only
what they sell, and there is obviously
buying Of another they" are
doing it. Who "they" are, no one
knows-at any rate, no one has ever
given a satisfactory answer to the
question. Last week, however.
"they" were, in some small measure,
at least, the speculative investors,
who always find their way into Wall
Street after prices have had tun-
BILE, and who buy little stock and
put it away for six months a year,
or as long as is necessary to bring
about revival Of prices. Then they
come down to the Street again, sell
their stocks, depart and return no
more until another break attracts
them.
The most momentous thing in the
financial world last week was the
weakness of the foreign exchanges,
which carried most of the Furopean
moneys to new low levels in terms of
dollars. The pound sterling, for ex-
ample, broke below 50 for the first
time in history, thus vindicating the
prediction made several months acc
by Sir George Paish. Unfortunately
there is nothing to indicate that the
end Of the decline Is in sight. Unless
the peace treaty is passed by the
Senate at the next session Of Con.
gress, there is little or no chance
that international bankers here vii
undertake to float foreign loans
They say now that the matter Of
providing credit for our foreign Gus
toners is strictly up to the govern
ment. And the outlook for early &C
ton in that direction is none toe
hopeful.
A member Of The Tribune's finan
cial staff, just returned from a sur
vcy Of conditions at various indus
trial centers, reports that leading
| factories have orders that will keer
them busy for months, and ever
years. Many of them are planning
expansion of their facilities to take
care Of the demands. And this i.
only business actually booked-fol
\ which definite orders have beer
4 placed. The extent Of the unsatis
fled demand, for which no attemp
has been made to place orders a.
yet, is equally imposing. Think O.
the tremendous shortage of housin,
II and of the enormous expenditure
the railroads must make as soon a.
y the muddle in which they are in
- volved is cleared up. The untitled
= business of yesterday is a prett,
H good shock absorber against the pos
sible unfavorable developments O
tomorrow.
II Meanwhile the situation grow
constantly more acute. Figures pub
J llshed yesterday show that the trad
: balance in our commerce with tn
world is running in favor of thi
! country at the rate of more than 81,
S00,O00,000 a year, despite the fac