The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-20


is most fortunate that the Washington
conference has surmounted the obstacles
that at one time threatened the useful
ness of the gathering. In the meantime
more steel strikers have returned to
work, most of the longshoremen Of this
city are again on duty and dozens Of
smaller disturbances in various sections
of the country are in a fair way to be
composed. Those results so far as they
go are gratifying, and in connection
with the strong stand taken by the Fed
eral authorities against the radical ele-
ment at Gary and elsewhere show that
the Bolshevist I'd Is being controlled
properly in this country of high wages,
steady work and saving good sense.
There are numerous difficulties to con-
tend with. as bituminous miners are
threatening to tie up SO per cent. OF the
producing mines, on which the nations
great industries depend for fuel. But
the situation Is not as threatening as 1t
was and the large employers and the
most influential labor leaders are for
the first time in many years talking to
one another in man to man fashion con-
corning things which most interest their
physical and industrial welfares.
Adjusting Differences.
w
resembles the Versailles conference In
the sense that the factions are looking
into each others faces and discussing
terms OF settlement calculated materially
to reduce the war hazard In American
industrial institutions. The stock mar
ket shows that people want stocks and
intend to have them. Besides the buy
ing for speculation there has been in
crea sed absorption OF seasoned securi-
h,, To r
their income accounts during the period
when or per cent. has been obtain
able for safe investments. 1t may
be that this movement will be car
ried too far and that the strain of
speculation on bank resources will
force the sort OF sudden readjustment
often seen In the years closing quarter.
The position of the Federal Reserve
banks testify to the need of handling
carefully the loan account for the excess
reserve Is so slight as to suggest that
the time may not DE far distant when the
tax provided by section IL of the Federal
Reserve act will have to be imposed.
Money Market Outlook.
The probability is that the Federal
Reserve Board will act to prevent such
a contingency before the 40 per cent.
reserve limit be reached. Banks have
done a good deal on their own account
to prevent undue expansion of loans
based on Stock Exchange collateral
The continuance of 10 to is per cent.
call money shows that the situation is
still tense and that more effective dis
elimination may become necessary. II
| is always possible for the interior banks
| to increase their loan account in this
market by merely telegraphing their
| correspondent banks In this city to loan
| on call a portion of their balance car
rted here. In this way hundreds of mil
| lions % dollars are lent every year by
| institutions at such distances from this
market as to make 1t impossible for the
lender to keep in touch with the local
| conditions and to appreciate distur-
Dances which might result from the sud
den calling of loans here. Toward the
| close of July, when it was estimated that
fully $3.50. 10000 was outstanding ir
Wall Street loans, the interior banks
were credited with fully two-thirds OF
| their total. Since then the account has
been reduced to about $500, 600. 900, al
| which 1t stands.