Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-12-28
REVIEWS TRADE SITUATION
PAST YEAR HELD MOST
REMARKABLE IN HISTORY
United states Greatest Holder OF Gold
In the World, Snys Sum'.,nry
or Henry CicNs.
lSpccial TO The Times I

lSnecial 70 The Times Dispatch,l
NEW YORK. Dec 27.-Somc interest
view Of the American and foreign
financial SITUATION by Henry Clews q
60 issued today. The statement also
for the coming year. The report says:
nni n"r'ns lsis we have seen the elm
money rates and OF operations in So.
curi;ics, the revival of active trading
and inNesimcn; dealings. the removal
Us rcSu' subsequent decline both
in British and other currcncics to an
OF business on the stock exchange has
/ attained almost record proportions
while the issue Of new securities in
the United States has in recent months
surpassed all former levels OF the kind.
Many new shares have been admitted
10 the exchange: and trading has at
could not have been expected At the
opening OF the year.
Money Market Crucial.
1t has been mere and more evident
as the year has progressed that money
market conditions We're Of crucial i'm
during the carly rart OF he wear there
appeared 20 he an abundance Of funds
/, for loan, ii was shortly evident that
TINS was an Artificial condition due to
. the control which has been exercised
over interest rates during the war. on
July | limitations upon the foreign
shinrent OF gold and silver were sus
Iondcd, and since that date the move
ment Of gold out OF the country has
been steady reserve balances being ac-
Cordinrly depleted Al the same time
the reawakeunE Of industry and the
closer survey OF European needs. which
foreign conditions were so evidently
urgent, has shown tina: there would
hc far from Il sufficient amount OF
credit to go around As governmental
restrictions have relaxed. therefore, "A
Very decided tendency to advance in
money rates made itself evident and
- ~ . no J..
autumn charges for call funds began
20 advance steadily.
Foreign and Domestic Investments.
~ marked feature Of the years de-
Nclopncnt has beer the increase in the
investment yield 81 money an increase
which may be figured at from l to
rer cent on the s"under securities.
or reckoning = per cent as a normal
basis Of return before The war an in
crease Of 20 TO 80 per cent OF the level
then prevailing. This is Very moderate
Mhieh has risen more than lao per cent.
lhs advAncc has been more striking in
me case Of foreign than the case OF
domestic securities. many foreign
cur ties being nov on 4 10 per cent
oasis or better. although at the be-
s'"uns OF the scar they we're on prac-
.lgsliy the Same level as American
offerings Of the same class. This is
due 10 thc depreciation Of foreign en-
change which has itself been one Of
the most significant incidents OF the
Years. work.
Outlook for 1920.
Facing the year 1920. the United
states stands as the only free gold
ioarkc; in the world and by far the
greatest holder % gold in the world
the only Important market for capt.
al on large scale and as the most
extensive source OF raw materials. rs
vel a. cf manufactures now in en-
i>tcnts Its labg: is fully employed
and its .rrductiV. energies have more
thl.n an ample Held for their applica-
iCn. This inevitably means q cOntinu-
auCe O: strong ana active business
development. The shortage OF imme-
d!2tc loan funds. the tightening of
money sud the .fior: to contract credit
aye elements in the policy OF maintain
.ns stability and solvency, and they
may De expected to continue Il can
ro' however, associate itself from
Elropsan conditions. In Europe eco
uomlc 0lSorEan ization has not been
overcome and requires our aid for itS
Immediate relief The outlook for 1870
given due business caution, is hopeful:
ul' tho difficulties 20 be overcome are
great and tne necessity for self control
- the Use az credit Is more marked
,aal tor = long time past. However
tnr year draw TO a clos" distinctly
nor. cheerful feeling is diScerniblc i'm
ne Wal street district; this is evil
aenceG - me decreased demand for
,n@ standard shares on tho belief that
mo market VIII be entitled 70 the Gus
tp!na-! .nu-ry rise"