The daily banner. (Cambridge, Md.) 1897-2008, 1920-08-21
money AND MAIL. =.
The Following Statement seSa, : 03
Current Market G3nt.l ions e.
Sent By The National BaGL. -
Commerce In New York.

The gradual improvement Of ;1c rs
Dcrtation which has JCGn efcC ~
during recent weeks has permit
Umewhat more rapid movement 9
<lain than had Deeil anticaptett. = r
sequently the follower from the {
ceding year has in good me,~i:Ir
been cared for and the new CROP "
ing season has begun on schc tul
and under more favorable condition.
than seemed possible month aSd
It is reported from some sections I
the middle west that bank loans i
finance the actual harvesting o. IN
new crop are being reduced 1T 4
earlier date than is usually the 4
While the credit requirements .
the new movement will not :'cac
maximum volume for some time .
come and while easier credit Han
rot be expected until the peak Il Il
movement has passed, The situatio
has improved sufficiently to max
reasonably clear that The autIin
agricultural demands for credit "
not be in excess of the ability OF II
banks 20 supply.
There are indications also iha
many commercial borrowers, IL re
sponse to expectations of a cred!
stringency during the fall which haV
prevailed for many months, have Z
least to some extent anticipated thei
autumn requirements for credit. Ihl
factor, coupled with the continue
tendency toward reduced volume G
business and lower prices for man
commodities, may be expected 20 ri
ieye the pressure Of commercial IN
Industrial credit requirements.
must be recognized, however, the
~ome little time will be necessary &c
this relief to make itself .1annes
because of the interval which mus
alapse before a new policy in bus
ness brings results.
Rates in the New York none
market have ruled steady through
out the period of July 16-August /
Commercial borrowings in the op9
market have continued at firm levi
of s per cent. Call money rate|
which ruled at per cent. at the 4
ginning of the period, gradually IL
clined to about per cent. at !
close. This decline has Tet1cctei
not a surplus of funds available II
stock exchange employment, but Il
reduced volume of requirements r
sulting from continued stock liquid
ton.
The bond market has experience
a real measure of improvements d''l
| ing the period under review.
absorption by investors of corporal
and particularly of railroad secuF
ties has been good and has extenGe
to bonds of the second and thir
grade. The general trend of price
moreover. has been moderately u
| ward.
This improvement in tone IS = -
| dection of the more definite and in
| proved position of the RAILROAD
which will result from the aettl
| nlent of the railroad wage questic
| md the allowance of substantial
| increased freight and passengt
| rates by the Interstate Commert
Commission. 1t reflects, also,
feeling that the readjustment
business and prices to more norm
| level is proceeding satisfactorily IN
| that this process will ultimately =
! lease to the investment market
| more adequate supply OF eredl
While these factors have occasione
a moderate upward trend OF Dor
prices the tremendous volume
| new financing which awaits a favo
| able market constitutes a retardir
lalement which may occasion repea
| ed fluctuations in the trend. 1t rnu
be expected that at each new lev
| of prices. outstanding bond :ssu'
will meet with the competition
new dotations.
| Although specifically not rue
change is evident in the gener
business situation from that or Ju
lis. nevertheless underlying intrins
conditions are slowly and steadl
making for a sounder situation. 4
irDortant element, is the determfn
ton of business interests to carry /
10 effect a new policy of conductll
their affairs on sane and conserv
Tive lines, looking toward stablll
md continuance in business ratn
han 20 The policy which until +
Gently prevailed of doing as mu'
business as possible at high rates
a basis of excited public buying wi
-2c-lti1g abnormal profits.
With few exceptions. the whol
sale markets are now in condlti
of inactivity not paralleled since t.
period of uncertainty which folio
ed the armistice. Normally, this
| the dullest season of the year a
the condition of stagnation is pal
ialIy to be ascribed to that fact.
a far greater extent, however, II
she result of widespread reala2
ton which has at last become gene
al throughout the business eommu'
ty, that the present downward pr
movement is not a temporary ten
ency but a decline toward a ne
j level applicable to postwar CONF
tions a level which can be found
ly by cautions experimentation
the market. 1t is possible that
some commodities this new level b