Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-10-09
VALUE OF DOLLAR
CONTINUES TO RISE
Price-SIashing Is Genuine, Al
though Slow to Make
Itself Felt

New York, Oct. 9.--The fnancia'
outlook is presented today in the Herald
az follows:
Price reductions by manufacturers
have scarcely as yet seeped through ail
the channels to the wholesaler ana re
taller. yet 1t became quite obvious III
the current week that the latter nave
Needed the tendency Of the times anu
have made concessions directly 10 the
consumer.
Advertisements to that effect were
scattered through the newspapers IN
profusion, and in most cases the con
cessions were substantial indeed. II
any doubt were entertained before as
to the genuineness of the movement, THIS
circumstance alone should serve to re-
move It.. While the development ID
generally recognized as the first step
toward business and industrial ADJUST.
ment, II naturally tends to cause DOUBT
and hesitation as to its possible scope
and impetuosity.
The week closing today was but an
other period of hating progress In the
securities markets, so far as specula-
tive activity or initiative were con.
cerncd. Awakened investment interest,"
was much in evidence, on the contrary.
Rail Share List Is Strong
This was reflected in the railroad
share list and in the bond department.
Both were animated and strong, AZ
though in the former in particular the
advance had been SO vigorously pushed
last week and the first part OF TINS week
that considerable profit realizing TOOK
place, but, whereas last week the more
ective accumulation seemed to be in the
minor issues, this week buying was at
tracted to the dividend paying roads.
Reading especially was sought out on
Wednesday for q 5-point run to above
par because of the nearness OF action
with respect to the dissolution decree OK
the United States Supreme Court ana
the probable segregation of the coal
property assets. The next day the nd-
vance was carried to 101. and then when
the news was out at Philadelphia to the
effect that the Circuit Court in that city
had filed the decree and gave the road
ninety days in which to formulate q
plan for distributing the assets IN ques-
| ton, the stock sold down broadly to
within Q or 3 points Of the level at
which it was selling when the rise
began.
1t Is doubtful, however If the prob
able advantages of the pending distri-
button of assets have been fully dis
counted and It would surprise nobody to
see the stock take another t1ier in the
| coming week.
Texas and Pacific Drops
Another spectacular performer in the
| railroad list was Texas and Pacific,
which dropped from around 80 to below
% in the space of two days. most of
the loss being recorded on Wednesday
also While there were reasons enough
for revision of value in that issue
an inmediat" reason for the violent
break was difficult to find.
The episode was mainly of interest
because it took place at moment
when railroad shares had enjoyed a
brisk advance and accordingly played
big part in influencing buyers to
take profits.
Only now are returns from the vari-
ous railroad companies of Septembei
operations rejecting the advantage o.
the fare and rate increases. effective tn,
latter part of August.
1t would not appear that the volume
Of traffic has been much changed in this
period, whereas freight revenue has "a.
panded from 33 to 40 per cent OF
thereabouts, according to the latest es
Inmates based on movements in eastern
territory. Gross freight revenue of tn
New York Central in the first week o
September gained more than 43 per cen
and passenger revenue 351a per cent
Dollar Still Expanding
Inthe first three weeks of that montl
freight revenue increased "a per cen
and passenger 3GH per cent. Baltimor
and Ohio did substantially as well
while Pennsylvania and Reading expert
enCed benefits in lesser degree. but witt
promise of eventual advantage. not ia
short. If any. 1t is still too early t.
arrive at any definite conclusions, bu
the outlook seems very promising, in
deed
At the same time the purchasin
power Of the dollar continues to expan
with the decline in commodity prices.
circumstance which tends directly [
! stimulate investment interest and give
: encouragement to the view that none
conditions in general will experience i'm
provement, although it would seem n,
. excess of optimism to expect this to tax
place in the near future.
The seasonal demand for funds in tn
, matter Of financing crops and the ex
port movement Is still great. and NOR
than this, there Is q pronounced tren
toward corporation financing for til
purpose of funding current indebtedness
, az well as to take care OF expandin
business confidently expected as resuI
/; of price readjustment should the process
I continue as it has to date progresse
v lAal.r