Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-03-19
EASY MONEY SAID
TO Be IN SIGHT
Brokers Expect to Run Into a
Per Cent Funds Before
Long

Two impressions seemed to dominate
the financial district yesterday, one was
that easy money is in sight, and the
other that commodities are due for a
downward slide.
It Is not often that opinions on mat
tors 40 important as these two. are so
universally held unless heralded In the
public press, but in this instance the
conclusions seem to have been arrived
at without any particular heraldng.
One banker, perhaps. gave the best
explanation as TO why "thc street
seemed unanimous on the subjects when
he said ut Is in the atmosphere" lie
also said that he would not be sur
prised II, before very long. we would
| run into session Of per cent money.
There are tales retailed in brokers'
boardrooms about the indications point
| ing to q reduction In commodity prices.
and all Of them bear the same earmarks.
They tell of buyers who have at last
convinced sellers that the present trend
Of prices cannot continue, that the turn
| ing Of the lane has been reached that
the old excuses of high cost OF raw
material and excessive labor costs, with
exhausted stocks and inability to supply
the demands, have been played to
fnish and don't 90 any longer. Buyers
!
were largely made to order to stimulate
ridding at higher prices.
An investment banker said he under
stood that for some time past produc.
tions in many lines had caught up and
/ In some instances had overtaken con-
| sumption. That exports Of certain COM
modities had not reached expectations.
and with the present prohibitive ex-
exchange premiums are likely to be less
! han they have been, was also con-
tributing factor.
This banker said that as the banks
are getting after the outstanding loans
in vigorous fashion, we may expect 20
see the daily bargain counters make
their sppearance in stores Of every de-
scription.
There Is now, he said. as there has
always been, q certain class who have
money and will not deny themselves
anything no matter what the price, but
after all this class Is a comparatively
small percentage Of a community which
IL up In open rebellion against a con-
tinuancc OF war prices which have pre-,
vailed for five years past, and OF when
they are heartily sick and are Willing
70 sacrifice many comforts to bring
them down.
The recent recommendations OF re,
organization Of the system or federai
taxation by Secretary of the Treasury
Houston met with general approval IN
the financial district. .,.-...
| A banker remarked in this connection
that some of the plans proposed at one
time or other for taxation read more
| like Joke than the deliberations OF seri-
ous men. He agreed with the secretary
In his remarks about the baneful in
Huence OF the excess taxes profts on
business, and the adoption OF nat,
Instead Of q graded. tax on prohts. he
IL In favor OF a consumption tax along
the lines which have been popularity dis
cussed and was surprised the secretary
made no reference to 1t.
When discussing the decision OF the
Supreme Court ou the matter OF stock
dividends, he remarked that 1t was sur
prising that the House ways and means
Committee, when they found the deci-
sion against taxation, did not propose
q law taxing undivided profits, and IN
this way they would have reached the
big surpluses from which STOCK di'i-
derds will be distributed.
That the changed atmosphere in the
stock market during the past few days
Is reflected In the bond market no longer
admits Of doubt.
A partner In an uptown investment
house, which deals largely in railroad
bonds, said there has been decided
change in the past few days, and from
the Inquiries he had received, as we'll
as from the sales he had made. he had
concluded that the small investor IN
good seasoned railroad bonds is again
coming into the market In large mum =
bcrs. They are discriminating buyers,
he said, and are picking up the highest
yields at the present prices. Up to the
present, he said these purchases have
made no appreciabl change on prices,
but, notwithstanding, the trend is up
ward.
The manager Of a large bond house
confirmed the above conditions as his
experience also. He said, however, that
tho big institutions seem to be out OF
the market for the time being, probably
because they are finding other more
profitable bidders for their funds.
Some OF the big insurance companies,
he said, have let 1t be known they have
funds to loan on building propositions,
something which the municipalities are
encouraging at this time. These con ,
Germs, he said, are In New York, and
IL any of them In this city are doing II
they had not let II be known publicly
but they are not buying railroad bonds