Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-12-13
MARKET SENTIMENT
DECIDEDLY BLUE
Productive Work One Funda-
mental Remedy for Economic
and Social Distempers
PROBLEMS ARE INCREASING

ThunlEMo AhE lNChEASlNG
New York. Dec. 13.-The Evening
Sun, in its weekly financial review to-
day. says:
Tightening money supply, demorali
zation in the foreign exchanges and
various manifestations attending indus
trial unscttlement and unrest this week
kept before the eyes Of Wall street and
the nation at large the economic and
social distcmpers from which the world
and each individual country are suf-
fcring. 1t is agreed that there is but
one fundamental remedy-productiv
work--and the problem of the hour is
how to bring the patient to the point
of swallowing the medicine. To take
the dose in driblets and wherever and
. whenever, If at all. at tfc whim of the
, invalid, is to trifc with very grave
, ailment. How long this triAing is to
go on depends on so many things that
! 1t is no wonder that bankers, econo-
mists, brokers aud the investing and
speculative public alike have lapsed
into blue funk about it. This was
j the keynote of sentiment in the week
] closing today and bids fair TO continue
for the balance cf the year at least.
In its cropping for something to feel
, hopeful about, the Street has pitched
on the turn of the ycar'' to do it's
r magic trick. 1t will be known then
: what is to happen to the railroads.
q Perhaps IL will be known then what
9 fate has in store for the peace treaty.
J There will no longer be an immediate
!; question of selling securities to cstab-
{ lish leases against the federal tax re
$ turn. 1t may be that the Edge bill
= providing for foreign trade financing
= will have been passed. The settlement
n of the coal strike gives promise OF
a steady fuel production by that time.
d and possibly the way seen clear to
!; modify or eliminate irritating fuel re
9 strictious 1t is within the scope OF
> reason to hope that something will be
r contrived TO stay the rapid decline in
n the foreign exchanges and to establish
n a basis for positive international rela
d tionShip.
II Scraping Bottom
i. Meanwhile n holiday atmosphere has
y invaded the financial community anC
Il this circumstance offers little cncour
d agement for initiative in the immediate
Y future. Estimates of the size of the
Si short interest in the stock market vary
l. widely, but it seems TO be consider
a, able. There is feeling that prices arr
ID approximately at bottom.
ID IF this state of affairs as to the tech
X nical position of the market should draj
ID along until after January l, 1t is sup
~ posed that the recent fever for specu
l. lstion, which many suspect has becl
u only temporarily suppressed, will hav
N some chance of reviving.
/. Such a development, would depend OF
er conditions within the money market
e. The tightness of funds this week wa
O. caused by Withdrawals of governmen
lie deposits and consequent steady call
70 ing of loans. Fifteen per cent wa
ep eS eXacted for call accommodation yes
y tcrday following the further advance il
ys the Federal Reserve discount rate OF
of Thursday.
IN This advance was not unexpecte,
tss from the time of the original advanc
~ ~ in November, and it was taken to mca1
ii as serving of notice that the Fedora
ae Reserve Board had no intention of mod
q. ~ flying its attitude toward speculation
lie in stocks.
60 Up to Friday call loans renewed at
- per cent On that day the rcnewa
$, rate was 8 per cent. Through the wee
TX new loans were made at 10, ~ and l
N per cent. The immediate cause for thi
Se ": was preparation for the December
nd financing requirements, on which dat
ne final tax payments become due. Wa
fo bond coupons will have to be paid the
n also. In addition preparations are bus
as lily in the making for end of the yea
a financing which, of course, is alway
heavy.
,r Foreign Exchange Problem
e What to do about the foreign ex
10 changes was perhaps the most pressin
ed question heard. Interest in this sub
lIss ject was largely mouopolized by ster
ay ling. which dropped to below So. 81, re
re- calling the predictions of British econo
~; mists and others that the pound woul
At, eventually drop as low. as $3.50. Ac
e,rr ee,rr celeration to the decline this week wa
iii attributed to the outgiving of Sir Geore
;, Paish to the effect that America mu:
a. ~ go to the financial assistance of Euror
MS at once if the latters ruin was to |
-, averted
lc- This has been said forcefully enoug
re- before and was accepted as containin
an element of truth, but the alarmi'
note was deprecated in more conserva
~ tive quarters. What can be done,
~ was asked, our treaty relation
ID shall have II established? Form,
,gHe British Chancellor of the Exchequ,
nd Bonar Law announced in Common
Ice that the British authorities had no in
ed tention of taking action to stabilize rat
I'm although it was supposed that the mat
of ter would come up for discussion at Il
to conference in London between NJ
iees, LLOYD George and NJ. Clemenceau.
mt The situation is sufficiently disturbin
til but for all that there is a good deal
" sentiment in favor of letting matte
take their course on the theory that d
only practical and permanent soluti'
is to permit the exchanges to go to t
- point where they will reach the level
production abroad and that stabilizati,
- and improvement will follow upon gra
ual increase in production. But tt
,oSft hinges on the extent to which Ameri
,sn can grant credits for foreign manufa
&c; turing and the possibility of exporti
.he raw materials and partly fabricated mi
terials. This country, Wall street b
iieves, must make a beginning by pu
IN, ting an end to costly industrial fricti
m and to political wranglng over the pea
pc treaty.
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