The sun., 1919-06-30

the beginning Of the peace readjustment;
and this beginning Is marked by the
general removal of the war restrictions
upon the international movement OF gold,
by free market for foreign exchange,
and by bidding for our gold on the part
OF South American countries. Govern
ment disbursements, too, are, diminish
ing. and the advances OF our Government
TO foreign nations are being vcyy much
reduced. 1t is moro than a coirAcidence
that the establishment Of legal 2eace
through the signing OF the treaty shS>pld
be thus accompanied by the beginning o.
the readjustment OF financial affairs to aN
peace basis. Somewhat regardless OF the
prices OF sterling exchange and other
foreign bills, the shipments Of American
gold are likely to be a rather frequent
occurrence. since we possess a third of
the worlds total supply of gold money,
while European nations are extremely
short Of the necessary coin for banking
uses. Europe is starved not merely for
food and clothing but also for bank re-
serves; and the prices she is willing to
pay for all these things are dictated not
by their intrinsic worth but by her
needs. Meanwhile the flow of the crop
money from the interior TO New York.
which usually begins the middle of De-
cember and ends the middle of the fol-
lowing August, has already terminated.
The interior Is drawing funds from New
York, and as between tho two the bal
ance Of trade Is now In favor of the in
terror because Of the excessive prices
which farm products are bringing. II Is
unlikely then that the call money mar
ket will become easy for more than q
week or two at time during the entire
summer"
Say Bankers Control Money.
J. s. Bache & Co. say: THE money
situation is unfavorable TO any large
speculative operation and money ia I'M
der control of the bankers. The result
is somewhat Hike that of a fire which
has been banked up. There is a tempo
rary cooling off at the top and a steady,
effectual burning underneath. The fires
there are very much alive. AS this proc
ess OF curtailment continues the founda-
ton is apparently Strengthening all the
time and optimism as to values increas-
ing. Developments In the steel business
and In the copper trade are favorable,
ana In general It may be said that
Industry is constantly working toward
larger volume, with good profits steadily
accommodating. The buying power OF the
country Is enormous and will be aug
mented by the harvest. Increasing ton
mage will enlarge the export trade and
demand abroad Is undoubtedly waiting
In great volume for increased tonnage.
With prosperity looming, the labor prob
lens are more capable of ultimate sat-
isfactory settlement. The quiet purchas-
ing OF carefully selected securities 10
proceeding and appears to be Justified"
Halle Stieglitz say: I'VE think IL is
fair statement to mako that the con-
siderable rise in security prices since
February has in the main been n dis
counting OF the improved asset values of
American corporations; n measuring up
OF security prices to the inflated prices
for everything else from shoes to -four,
and n recognition OF the intangible ele-
ments in this country's predominant po-
sit.on in world finance. commerce. re-
sources and industry. From now on we
believe the market is going to discount
tangible things connected with Americas
financial and industrial greatness. And
We believe the market leaders from now
on will be standard shares, such as
steels. coppers, equipments. raw material
stocks and, as Congressional legislation
develops, perhaps the rails"
Clark. Childs & Co. say: The out
look seems to be for a more moderate
market during the heated term. with not
only n smaller volume OF operations but
also a narrow movement of prices, all OF
which should help Wall Street to adjust
its various machinery so as to be ready
In the early fall to start in with busi-
nese in excess OF anything ever known.
At the moment the whole atmosphere Is
clearer than before the overdue shake
up OF two weeks ago. There is less
wild public speculation, and It Is likely to
show a further contraction as the sum
mer goes on. Men have now as individ-
IN 10 IN ttyhaf 10 In g. sot
their stocks of certain classes on account
OF the very poor reports many concerns
are TO make for the June 30 quarter or
to hold them because of the indubitable
evidence of increased activity and profit
in great industries. chiefly since the
middle OF June"