Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-05-20
Exports Indicate Trade Balance
of$,OOO,OOO,OOO for the Year

OILY meet its forthcoming obligations by
persistent short-term borrowing and heavy
taxation. There is no prospect Of alley1a-
ton in the latter, unless the government
enforces drastic economies, Of which it shows
on evidence. Private economy Is equally nee
essary, hut of that, too, there are few signs.
ment will remain as it has been, the domi-
napt factor in the money market. Its de-
mands will have to be met, in the future
rs in the past, by banking institutions whose
resources are already overtaxed in this re-
spect. Other nations are coming here to be
financed. At the same time provision has
to be financed. AT the same time provision
has to be made for our foreign trade, which
tic trade; and added to this is the impera-
tive launching of many new enterprises and
be remembered long deferred by war. 1t
must he remembered also that high prices
or depreciation of the dollar, diminish the
loaning capacity Of the banks. All in all,
our financial institutions are carrying
heavy lead of credit, which, thanks to the
federal reserve system, they are thoroughly
able to do But our banking resources are
heavily burdened, and their limitations must
be kept in mind in al. financial operations:
High interest rates are to he expected until
Stock Market Outlook
Million share days have followed each
other consecutively for about a month, and
on Wednesday the total transactions reached
100000 shares. the highest since 1917, At
periods the market experienced more or less
profit taking, induced largely by stiffening
Of money rates. Copper shares showed tenn
porary strength, owing to the advance in sill
yer. Steels recovered fairly, being stimu-
lated by better reports from manufacturing
centers. Shipping shares advanced because
Of the prosperity Of both shipbuilders and
shipowners, with good prospects Of its con-
tinuance. Reports of good business from
nearly all sections Of the country, indus
trial and agricultural, also gave the market
confident undertone. Railroad shares came
in for increased attention, owing partly to
the expecta tion of better gross earnings, but
mainly because of the belief that congress
would soon give needed legislative relief,
and that the government in due time would
and must return the roads to their owners
in as good condition as when taken over.
Favorable crop advices and other sa tisfac
tory business conditions served to maintain
confidence in the future of the market de-
spite realizing and occasional soft spots.
Much Of the speculative buying came from
the west, where funds seem abundant and
optimism runs strong. More new security
offerings have been put on the market dur
ing the last two weeks than ut any time
since we entered the war, desirable issues
being readily absorbed.
The one obstacle to a more active and
higher market is the monetary situation.
This will bear close watching. The Temporal
~ advance of call loans to ~ per cent
was warning that should be needed. This
market will undoubtedly go higher event
ually; but there is danger in present over
bought conditions, and liquidation in certain
quarters would really strengthen the situa-
tion. Preparations for payment of the first
instalment Of the Victory loan on Tuesday
next may have been a factor in the rise Of
money rates, and there is the possibility of
the federal reserve banks advancing their
red1scount rates in order to discourage ex-
cessive specula ton. There is no reason for
taking other than hopeful views of the Sc
curity markets; for buyers will have to dis
criminate more sharply if they wish to
avoid the increasing probabilities of sharp
setbacks. When these are over a further
general advance may be looked for. Wash
lngton will again be an interesting factor
when congress opens.