Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-07-08
Most Assuring Outlook for Business
Based j pon Agricultural Prosperity

Henry C!ews & Co.'s weekly review says
in part:
independence holidays materially inter
Tered with business in the financial district,
although stock exchange Transactions passed
The million-Share mark on three days out
If the four which the market open.
conflicting tendencies which developed in
June still prevail There is a decidedly
strong undertone in the market, and some
shares scored sharp advances which, how
ever, were not always easy to maintain.
On the favorable side of the picture we
have a most assuring outlook for business,
based chiefly, of course, upon our eXtraor-
binary agricultural prosperity. We next
have the revival consequent upon establish
ment of peace, the resumption of many pre-
war activities and the urgent necessity of
making up lost time and lost work during
the war; the latter being conspicuously
noticeable in the real estate and building
trades, which would break out into a genu-
inc boom if financial limitations did not
prevent. Another powerful stimulant is the
tremendous expansion in our foreign trade
and shipping. concerning which eXpecta tiOns
still run very high. Finally we have the
element of initiation in nearly every line of
business, the power and potentialities of
which are not always fully appreciated. To
day initiation is real and very powerful
factor in our business life. 1t has always
followed great wars; and this particular
ctaclysm has been no exception. AS every
one knows to his discontinue. commodities
have risen enormously, and beyond all rea-
son. Securities alone have Jagged behind.
Psychology, or the public state of mind
has not a little to do with the advance;
for while worldwide scarcity has been the
main lifting power, the law of supply and
demand appears to be temporarily impaired
if not suspended, by universal breakdown
Of buyers opposition to high prices. As
long as buyers will pay, sellers will demand
and nothing short of exhausted purcha sing
power on the part of the public seems likely
to stop the present unreasoning upward
movement in merchandise. This country is
living in a state of exalted prosperity, the
end of which IS not yet seen; and hard
headed, practical business men consider it
more advantageous to go with the flood tide
for the time being, keeping sharp lookout
for evidences of the returning ebb.
Limitations of the Money Market
There is one, and perhaps only one, eff.
fectual restraint upon the development of
dangerous speculation from such extraordi-
nary conditions, and that is the money mar
ket. Fortunately its limitations are keenly
appreciate by the banking fraternity. Our
banking institutions passed through the
test of war in splendid form. and their re-
sources have not been impaired despite the
enormous load imposed on them by gov
eminent and other financial operations. The
demands upon them will, however, be very
heavy for many months to come. The gov
eminent must continue to be a heavy bor-
rover on short time until our eX-
penses have been more closely paid. Re-
Gently the banks have materially lessened
their holdings Of government obligations and
will be we'll able to proffer the aid needed
in this direction. The most serious problem
probably is the financing of our export trade,
which has reached such unweldy proportions,
and the resulting abnormal volume of ex-
ports can only be offset or diminished by
encouraging other countries to pay either
in goods or securities. Hereafter as a