Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-12-03
GOSSIP OF THE STREET
BROKERS' OPINIONS VARY
ON PRESIDENTS MESSAGE
not Expected TO Hare Much Effect Market Movements
One Way the Other

OPINIONS of the leading broker,
on the probable effect of the Presi
dents message on the stock market
vary considerably. Some disappoint
nent was expressed because of the
omission of a definite program concern
ing the peace treaty and the railroad
situation. , y.~
Many bankers and financiers said
they had not read the message, some
had only read scraps of it and had no
opinions. A banking and brokerage
house with very close Affiliations with
leading New York financiers said on
the whole the message should be well
received in the street
Brokers questioned on the effect which
the message had on the market were
practically unanimous in saying it had
no effect on stock prices one way or
the other. Some said they believed
when the message is rcread and di-
gested, the effect would be favorable.
others held contrary opinion aud said
the effect would be mildly bcarish.
1t is natural, said n well known
banker. that so much of the message is
aevoted to labor. as that is the most
important factor with which we are
dealing today. He said he hoped Con-
gress would get to work and deal with
our present labor troubles in bust
ness like manner and throw all politics
in the matter aside. If they don t, he
added. we will find the country drifting
gradually into the present condition OF
some of the European countries.
In the brokers offices, customers
we're awaiting the message all morning.
and when IL came there seemed Shaue
of disappointment. AS one customer eX-
pressed it There something lacking
but don't know what it *.
Drop in British Sterling
The exchange situation in relation to
European countries is receiving a good
deal of attention in financial and eN-
porting quarters at present. The mat
ter came up acutely yesterday when
British sterling dropped to 3.0412. the
lowest point reached yet.
A banker remarked, when speaking
of this. that he believed the matter will
gradually right itself if people would
only get back to work again and all tins
political and labor agitation would
cease.
There is one source for this regula-
ton which is not very evident now, he
said, but it will soon begin TO show
itself after the second or third month
Of the coming year. He said that he
did not believe that any one comprc-
hended what factor the rush of tour
lists to visit Europe will mean as soon
as it gets under way. Estimates have
been made, he said, based on actual res
ervations engaged and inquiries for res
ervations for passage to France and
other allied countries in Europe, and
these estimates forecast an exodus from
the United States for 1000, 900 tour
lists, including emigrants returning to
their native shores.
These latter are carrying back with
them the savings of years, averaging
over $4,000 per family. As for the
tourists, who will visit the devastated
parts of Europe, it is certain that they
will spend on an average ut least $1,000
each. These two items alone, he said, ,
will account before the end of 1920 for
a transfer Of actual cash of between
81, 800, ,O00, 900 to SO, 900, 900, 900. Mean I
time, he continued, preparations are
going forward for organization on a
nation wide basis to provide the needed
financial advances in the form of pro-
tected credits.
This matter. he said, is in the hands
of the subcommittee on foreign credits
which met recently ut Atlantic City. F.
Reserve Board Curtailing Loans
In giving the reasons for action of the .
Federal Reserve Board in curtailing
loans for speculative purposes recently,
the Mechanics and Metals National
Bank. New York, gives the following
explanation in its December letter.
The more general cause of expanded
bank credit throughout the United
States have been the funds absorbed by
financing, the unprece
dented demand for purely commercial
loans. the rise in prices. the crop NOV
ing. and the borrowing of funds for
speculation in stocks. commodities and
land. The urgent government borrow
ing of the war period having ended, it
might be thought that latterly a curtail
ment of bank credit had been in order.
The contrary, however. was the ease.
The extent to which credit had been
expanded at New York prior to the