Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-12-22
The Treaty and Credit Plans


If the treaty is not ratified very soon
said an investment banker, it will short
ly become the leading influence in every
financial avenue in this country. SO
long as it is being kicked like football,
as is now the case, no credit plans can
be arranged for the benefit of Europe
and our export trade will suffer Sc
verely in consequence.
lie said what surprised him most
are the statistics of our foreign trade
figures under present conditions.
The exports continue to expand. and
this expansion is not confined particu
larly to any one country, such as Great
Britain, where the fall in sterling is
causing some apprehension, but applies
as well to all belligerent countries in a
greater or less degree. If one had .only
the exchange rates to base conclusions
upon, he remarked, exports would be
at a low point or would have ceased
altogether.
One wonders what they might be if
conditions were different, and the treaty
signed and out of the way, he said.
Bankers Discuss Business Conditions
Below arc given leading opinions on
matters relating to present financial
conditions:
ii. l.. DOherty & Co.: Fixed income
bearing securities have suffered severely
in market prices from the advance in
the cost of living, and the consequent
decreased purchasing power of the dol =
lar The investor who three years ago
owned these fixed income bearing Sc
curities and received from them salts
factory income now finds that the
amounts received in interest or in divi-
dends on these investments will not
purchase much more than one half the
volume of commodities these same in
tcrest and dividends purchased three
years ago.
At the time of the signing of the
armistice more than a year ago there
was a feeling in investment circles that
peace would result in lowering of
living cost, consequent increase in
the purchasing power of the dollar, and &,
of course, an advance in the market
quotations on fixed income bearing Sc
curities, such as bonds and preferred
stocks. The rise in bond prices i'm
mediately after the signing of the armi-
Stico was largely influenced through
buying by large institutions on the
theory that as the war had ended com
modify prices would recede, and securi-
ties with fixed rates of return would
Europe to peace basis, and the con
tinuance of territorial and other con-
troyersies worked against any lowering
of commodity prices. 1t is the uni
versal opinion of dealers in investment
securities that there can be no general
advance in market quotations on such
issues until commodity prices have
started to move downward, and the
purchasing power of the dollar begins
to show an increase, these factors, of
course, meaning an increased Mlr-
chasing power in interest and dividends
on fixed income bearing securities.
Chandler Bros. n Co.--Thc foreign
exchange market still remains the ona
hig thing TO put right in some feast
BILE manner. When you can buy eleven
and three quarter francs for dollar,
one pound sterling for S3.66 and 100,
900 marks for $4,000 things have gone
far enough to call halt. The estab-
lishment of a few billion dollars Of
credit for these four countries, in.
Guiding Italy, and in which several
smaller countries, such as the Scandi-
naviau, Jugos, Serbia and Rumania
can participate, is a pressing necessity
The silver situation presents Il puz-
zling problem. with labor the interfer"
ing joker. This complex condition eX-
lists at no time in many years has the
request for silver stocks been SO slight
and at no previous time has the demand
for silver metal been so insiStent or it's
value so great. England has a virtually
unlimited order in the market ut ruling
quotations, but not below 81 an ounce.
China requires fully 1000, 900 ounces
under similar conditions to satisfy her
needs. 1t would seem, therefore, that
present demand will continue without
much, if any impairment of value. To
pick UP silver stocks at present very
low quotations before the big demand
develops for them seems TO us a very
wise proceeding.
Heckcr 4 CO.-Investors with ready
cash were very much in prominence last
week in picking up some of the low
price rails. These careful investors
realize that the days of building new
transcontinental lines is passed and
therefore the present systems will have
to take care of the country's growth
much to the enhancement of these Sc =
curities. With Baltimore and Ohio
selling around 80. Lehigh VALLEY around
40 and st. Paul preferred around 80 it
does not need much money TO pay for
these stocks outright and take them
away from the market. This gradual
absorption will have its effect, particu-
larly il some good news pertaining to
them should develop.
MacNIeeiin g. WiIkinson--Morc in
dications appeared that so called undi =
gested securities are market factor at
present. A factor that cannot be re-
duced to computation they exert,
nevertheless, an aGpreeiable influence
The ultimate investor, it is clearly
found. has not absorbed the great mass
of iyccnt Rotations. Much Of this new