Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-23

Sringency Partly retrieved
The National Bank OF Commerce Of
New York, in statement discussing
money and markets, asserts that while
the credit requirements Of the new crop
movement will not reach their maxi
mum volume for some time, and easier
credit cannot be expected until the peak
Of the movement has been passed, the
situation has improved enough to make
clear that the autumn agricultural
credit demands will not be too great
Tor the banks to supply. Continuing,
the statement reads:
There are Indications also that
many commercial borrowers, in re-
sponse to expectations of a credit strin-
gency during the fall which have pre-
vailed for many months, have at least
TO some extent anticipated their au-
tumn requirements for credit. This
factor, coupled with the continued
tendency toward reduced volume of
business and lower prices for many
commodities, may be expected to relieve
the pressure of commercial and indus
trial credit requirements. 1t must be
recognized. however, that some little
time VIII be necessary for this relief
70 make itself manifest, because of the
interval which must elapse before a new
pollcy In business brings results.
Hopeful on the Outlook
There was a general tone of optimism
IN the weekly market letters of the
iieaulng commission houses, the more
important Of which follow.
Henry & West: There has been very
little change In the domestic situation
since our last letter, industrial deflation
continues, the loan situation is only
slightly, IL at all, improved, commodity
prices are still declining, and we are
in the midst Of the vacation period. In
some ways, while they do not appear on
the surface, these factors are all work
ing toward sounder business condi-
ton. Imitation sooner or later had to
end, and an orderly retreat is some
times victory. Sooner or later busi-
ness will have basis at which it can
function properly, and sooner or later
the suck market will begin to discount
this stabilization Of business. To those
who buy, to hold, we recommend rail-
road and copper stocks as representing
two industries. the first Of which was
not inflated, and the second as having
been the first to feel the effects of de-
flation.
Hecker & Co.: The feeling is grow
ing in banking circles that though the
reserves may decline further, and
though the weston crop moving de-
mands will make themselves felt in the
East, the worst Of the crop moving
strain is over. With the majority of the
eastern states authorizing rate increases
to correspond with the Interstate Com
merce Commission, the rails which
have been neglected were again much in
demand. The rails may be well bought
at every recession.
Schmidt & Deery: From all indica
tions the market is in period of fux,
and the movement of prices is apt to be
sluggish, but to the far seeing the draw
ing of better. times is apparent. While
1t would be foOlhardy to maintain that
purchases at present quotations should
show immediate profit, it Is our opinion
that for the long pull, stocks picked up
at present quotations will show good
profit.
Chandler Bros. & Co.: The market
makes very little progress in either di =
lection. Public interest is very slight.
Every now and then some exhausted or
embarrassed holders. tired out with
their long, futile struggle of holding
securities aagainst the vagaries and
policy lacking of the present admins
tration, throw over their belongings and
prices suffer, as bearish traders assist
them in obtaining as low prices as pos
sible or, on the other hand. men with
comfortable bank balances beholding
stocks selling around $40 per share that
but few months ago, were in the 70S
cannot resist the temptation and buy
enough to give slightly improved tone
and start sufficient worry among the
short interests to add to the appearance
OF strength. Having established this con
dition, it only requires the nearer ap-
proach of bclshevistic guns to War
| saws defenscs to give the market an =
other palpitating and sickening period
In the meantime, stocks are surely con :
centrating more and more in the hands
| Of the strong interests which insures q
higher market later.
Hughes & Dier-The belief is grow
ing that the stock market has discounted
all unfavorablc factors and the read
justment which is going on in the bust =
ness world Therefore. financial opin
ion is more confident than it was a
month ago. Bankers of Importance
throughout the country are optimistic
in their outlook of the credit situation
and anticipate further improvement
after the harvesting needs are met. The
European news is also more assuring
and there is less inclination to look upon
the Russian Polish crisis as forecasting
another world conflict.
Steel industry reports indicate q long
period of prosperity for that trade and,
as the steel business Is looked upon as
the barometer of industrial affairs, we
believe the nation is rapidly strength =
ening it's position. condition which
should find reflection in an improved
stock market. During the last week it
was evident that liquidation had come
to a standstil and, while trading was
on a small scale, the entire list assumed
a better tone.