The Washington times., 1919-12-06
BOERSIANER'S
COM MENT ON
BUSINESS
BY BOERsIANER.

ny bO6nShANE<hs
They who are given to inductive
analysis were probably disappointed
over yesterdays share market. While
stocks were a little better than
steady, analysts no doubt expected
high-bounding buoyapcy on the bases
Of Jenkins release and Mr.. Palmer's
decision not to press the litigation
against the Southern Pacific in the
oil land case.
The. properties directly affected
Southern Pacific, Mexican Petroleum
and other petroleums Of Mexico
enjoyed, indeed. a boom, but their ac-
tivity and spirited advances failed to
anect the market as whole.
In less unaccountable days the or
the-time elimination OF an interna-
tional casus foderi and a negative
action validating the ownership of
100000 acres of oil lands had en-
thused the stock exchange But in
the latest instance the bourse re-
mained quite placid. Placidity ap-
pears to be correct diction, in that
neither Washington's favorable view
or the coal strike nor the further
dilapidation of foreign exchange seem
TO interest the bourse, which appeared
to be respiting after the Liquidation
or short commitments of the last
three days.
Following Wednesdays mirage of
Reinforcement, sterling, francs and lire
fell back in a desert where rational
bids were as precious as pure water
and offerings as numerous as the
sands.
Plainly, the foreign exchange mar
ket was inundated with bills from
literally every quarter of the globe
One Of the marked depressives came
from the neutral countries. For this
Hood there were several explanations,
the most conspicuous being Ger
many's refusal to sign the peace
protocol and the Bank Of England's
thinning reserve to liability as was
disclosed by Thursdays weekly state
ment. Marketed cotton bills increas-
ed heavily both In New York and Chi
cago. Foreign exchange departments
In banks were fairly overwhelmed
with them.
May BE Spreading.
1t is more than possible that the
December deliveries on midsummer
liquidated for whatever these will
bring-a possibility that may be
spreading to other lines of commod-
tiles and merchandise. Important
contracts were made by growers and
manufacturers in June, July and Aug
ust which have been delivered or are
delivering. Alarmed by the incessant
fall in foreign moneys, the contracts
are taking what they can get
The ready liquidation has also an
inducive aspect. The rather heavy
loss that is registered between the
contract figures and the present mar
ket quotation for foreign bills is that
much to the good Of the tax payer.
that is now made in the stock mar
ket
A considerable shipment of gol1 to
Buenos Aires and a slight lift in the
rate on bankers acceptances by the
Federal reserve banks had no sp-
preciable effect on the days money
market, which was relatively easter
for call loans and rigidly high on
long-term accommodations.
The slightly higher terms named
by the Federal banks on bankers ac-
ceptances should make the American
acceptance council more assiduous in
their campaign to have the New York
Stock Exchange accept term settle-
ments. That-the acceptance CoUu-
oils scheme-would clearly relieve
the call money market: in other
words, the Stock Exchange could tell
bankers to go to SO far as demand
accommodations are concerned. II is a
solution found by foreign stock brok-
ers long ago. There-abroad-the
fortnightly settlements make the de-
mand money equeezer impossible; at
least, he may function fortnightly
only and then practically covertly.
Cannibalistie Rates.
Yet while the cannibalistic call
money rates Of last month were ex-
ercised by what the American Ac-
ceptance Council propose, the pro-
posal, on the other hand, would ex-
pose the stock exchange to an evil
worse than the one banished-hy-
periodic speculation.
Bi-monthly settlements would in
vite an enormous increase in purely
speculative accounts. Furthermore,
the high standard of solvency estab-
lished by American stock brokers
were lowered. Daily settlements fore
fend many failures. Deferring set
Elements two weeks would tempt
over-extension.
Chicago tried the foreign settle
ments plan some twenty years ago
with disastrous results.