New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-07-16
BUSINESS CON.
D|T|ONS IMPROVE
CREDIT SITUATION SECOND HALF
OF YEAR is STILL UNDER
STRAIN.
CAR SUPPLY BIG FACTOR
BANKERS WORKING TO PREVENT
CRISIS IN AUTUMN; BUY.
ERS WARY.

nv -N'NT
New York. July 12.-The turn int,
the second half of the year has beef
aceomplishe< by some cheering events
for business and finance, although
many difficulties, long present, hay,
not been lesscned. The general credi
situation remains in Il state of strain
and it is certain that throughout tn,
summer bankers will act with a singi,
eye 10 the prevention of a really acut,
position in the autumn.
The very fact that the loan marke,
OF all varieties Of accommodation vii
be guided conservatiyely speaks fol
the avoidance of some tension In the
crop moving period. and the hope i.
expressed in banking quarters that the
taking of time by the forelock may
avoid so extreme Il burden upon credit
as was feared "A month ago,
knowledge that the underlying stu,
alton of credit had not been altered
at all by the satisfactory completion of
the midyear settlement seemed last
week to warn the speculative follow
ing of stocks that surface conditions
should moi be intrusted too far.
Sentiment favOrlng a relatively easy
money situation was moi sufficiently
strong to lull the lurking idea that
there might be numerous occasions
during The summer when II quick run
up" of the call rate would be embnr-
rassing to persons carrying long lines
of stocks.
The business and industrial outlook
is decidedly mixed, considering the
major lines of production and distribu.
ton. Commodity prices, as a whole,
declined In June, as compared with the
May level, but the movement was high
ly irregular. Textiles. brcadstuffs, live
stock, hides and leather declined, while
coal, coke, building materials and
chemicals, together with important
provisions which play II vital part In
the cost OF living.
some directions are offset by n heavy
demand in others, which tends to con-
fuse the outlook. Thus, the evidence
supplied by closing textile mills tells
Of n depression in this field far more
than seasonal slackening
would bring about, while Mt the same
time the consumption of articles used
In construction work, steel, cement,
lumber, etc, Is Overtaxing the prOduc-
ers.
A survey of current conditions re-
quire allowance by reason Of persist
ent railroad congestion. Pig iron pro-
ducriOn in June was at a rate of 5000
per day in excess Of the May out
put, which indicates active operations
Of steel plants, but lack Of adequate
transportation facilities Is causing II
great amount Of finished material. and
iron as well, to be piled in mill yards
until it a be moved.
Whether or not July reinvestment
derived from interest and divi.
iend payments, Is the main factor in
the market just now, the demand for
more active this month than last. The
Swiss government loan Of $25,00O,O0O
md the offering of $60.OOO,0O0 Armour
& Co. bonds last week were quickly
taken up, and the success of the under
fOreshadOws more in the near
II Is expected that the requirements
under which railroads may obtain per-
from the Interstate Commerce
TO float loans will shortly
clarified. for several of the leading
companies have new borrowings under
consideration.