Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-31
SENTIMENT BETTER
BUT TRADE IS LIGHT
Influences Continue to lndi-
cate Steady Betterment,
But Are Mon-Effective.
BY STEWART p. WEST.

NEW YORK. July 31.-The very i'm
pressive statement on credit condi-
tions by the controller of the cur
rency had no more influence upon
the stock market today than the sim
liar statement by the head of the fed
eral reserve board had earlier in the
week. Nevertheless, in n broader
view it was very reassuring. The
thought that if occasion demanded
the required reserve ratio could be
dropped ten points and produce an
extra lending power for the crop de-
mands of two and a half billion dol
lars is something that ought to be
borne home to everybody who has
been talking recklessly about posi-
BILE money market trouble in the au-
tumn.
If the reserve ratio were lowered
ten points it would still be around
"a per cent, and once again the COM
parison between this and the Bank of
England's u per cent reserve cannot
be avoided. If there has been no sug
gestion of financial crisis in Eng
land with a IL per centreSerVe, what
right would there be to fear a dis
turbance in this county with the re-
serve. even with credit extended to
the greatest conceivable maximum,
nearly three times larger?
Bond Market.
1t might have been expected that
the railway bond list would have
done better today in sympathy with
the rise in railway stocks. But this
was not the case. Here and there, as
in the Erie convertible B. there was
a little sympathetic strength. But on
the other hand. the Baltimore and
Ohio refunding IS moved directly
counter to the stock, which was quite
strong. and the Southern Pacific con-
l.
while Southern Pacific stock was
gaining a point. The Denver and Rio
Grande refundings were quite freely
sold at 44A which likewise means a
moderate loss. The st. Louis and San
Francisco incomes were well sup
ported at 4715.
There was not much change in 9TH
er issues. Liberty bonds. the United
Kingdoms, the City of Paris IS and
the Swiss government SIS were all
substantially unchanged.
Easier Money Prospects.
One of the houses which is particu-
larry bullish on the market Just now
money situation: I'VE have heard a
great deal about profiteering of late,
and the spotlight now is thrown upon
the banks. The controller of the cur
rency says there is plenty of money
to move the crops and that there is
no justification for 10 to Is per cent
money rates.
IF banks will heed this caution
and 1t is most likely, in our opinion.
that they will-money will be some
what easier We do not imply that
money will go back to 6 per cent in
the near future; that is too much to
expect. But too much emphasis can
not be placed upon the fact that loan
contraction has set in on a nation
wide scale, and that this process is
pound to increase the supply of funds
Tor Wall street purposes"
Controllers Statement.
Wall street had a good deal to say
against the controller of the currency
In the past, but it is safe to say that
the stock exchange community felt
impelled to shake his hand this morn
ing when they read the following:
Il will add that there is not. and
has not been, in my judgment, the
least justification for the excessive
and burdensome interest rates.. run
ming up TO 10. IL and Is per cent
by some of the banks in New York
city. New York is the only city of
consequence in the world where such
interest rates exist and are tolerated"
Trading on the curb market today
was smaller than in any previous ses-
sion in several months. The tone gem
orally was heavy, although there were
one or two exceptions which record
ed advances during the covering of
shorts. These were stocks like Gen.
eral Asphalt. which has been under Sc
we're pressure at previous times dur
ing the past week.
So far as could be learned there was
little outside participation, and the
bulk of the business was between the
professionals, who continued bearish,
on the average.
Little can be said of the oil list The
majority of the recent speculative IA
vorites were neglected and there were
no transactions in many of these I'M
til just before the end of the day Sew
eral of the low-priced shares were
comparatively active, Leetone being
one of the leaders and holding about
unchanged.
a fairly steady tone was displayed
in the mining shares, but outside in
lists and the professionals