The daily times. [volume] (Wilson, N.C.) 1902-1936, 1919-11-03
HENRY CLEWS
FINANCIAL FORECAST
Conservation Advised I'm Specu
lative Transactions great
initiation of
CURRENCY AND VALUES.

New York, No\. 1.-Work dur
in gthe past month has carried the
process of ratification of the treaty
of peace further toward practical
completion abroad, while the United
States still Fefrains from express
ing itself definitely one way OF the
other. The progress that has been
made enables foreign countries to
begin the task of settling down up
on a peace basis and of deermining
what they must do In the way CT
taxation and borrowing in order to
re-eStablish themselves In IN
course of this process very consid-
cradle demands are likely to be
brought to bear upon the United
States and znnch of the financing Of
the next few months will inevitably
be corrected with the Urdblem cf
exports and the making of provision
for the needs of foreign countries.
The closing of the atlantic City
| Trade Conference ON Saturday, Oc-
! toben 25, makes possible an estimate
of the results accomplished there
| with respect to financial negotio-
| tions. It is exident that foreign
countries want practically all the
assistance they can possibly obtain
I in the American market and that
: very moderate compuaticns ;of this
assistance would place the figure
well toward two billion dollars in
| the Immediate future. Meanwhile
Congress has practically reached
the point of passing the Edge bill
which provides for the cEeatin fof
Enew enterprises supervised by the
lgFederal Reserve Board, whose func-
tilon it will be 10 take the aobliga-
IEtions of foreign essncerns guaranteed
t'by the government under which
such concerns are operating and
tsse them as collateral for their own
ohlieations to be sold to citizens of
the limited States in order to fascili-
| tate exports which canet be paid Sor
at the present time by those who
receive them abroad. lit wo,lld
seem now as if a nmaalber OF these
i corporations would be organized
and it may be that much OF sthe 1ber-
rowGngs asked for by foreign coun-
tries may tt4ke the form Of advances
to be made to these Edge bill cor
poratiens. This may be cOnven-
lent way of handling the financing
rather than 'throagh straight govern
ment loans on this market. How
ever it may be disposed of the
chances now favor large issues of
foreign securities im one form or
another and serious drafts upon our
resources available for home use,
while a new type of securities is of
fered i'm considerable qAantities to
our investors.
Meanwhile, investors are obtain
ing very large rates Of earnings up
on the new securities which are is
sued by home concerns. Both stock
and bonds are being placed upon
the domestic market in great vol
umes, and as money loses it's pun
chasing power, the rate of interest
which must be paid in order to in
duce owners to forego present use in
favor Of future, has to be CORES
pondingly raised. The rates for
both call and time funds during the
past week have shown a stronger
tendency, and long-term borrowing
is now being conducted upon ba-
sis of high return. The fact that
the new British loan pays IA per
cent, with an additional exchange
profit to be made from possible con-
ion, is in itself symptomatic of the
whole situation. Not only foreign
securities but borrowings in behalf
of domestic enterprise are likel yto
be called upon for very much great
er payments in the form of interest
and dividends than heretofore, and
those whic hare unable to make
them will find themselves left be-
hind in the effort to get new capi-
tai.
: In the meantime, moreover, spec
ulation has become rampant and the
speculative spirit is spreading rap
J Continued on page six)