Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-21
CONSTRUCTIVE MEN.
DESERT WALL ST.
Commodities Decline Further as
Business Spreads Policy
of Retrenchment

New York. Aug. 21.-Thc financial
situation Is interpreted in the Sun to-
day as follows:
A further decline In commodity
prices, spreading of the policy Of re-
trenchmpnt in business circles and the
virtual desertion Of Wall street by the
more substantial and constructive ele-
ments exposed the market for securi-
ties in the current week to studied at
tacks by the bears from time to time.
Those attacks. however. had much
Of the appearance of being half hearted
and lacking in conviction. They were
not carried through with the enthu-
siasm which usually characterizes a
market which is in reasonably vul-
nernble position. Liquidation has been
carried 80 far that. with or without
spectacular developments to aid in
launching it. not a few observers look
for action OF some kind The feeling
is growing also that IL there is to be
action an upward swing in values Is
the logical, thing to expect. At the
moment there IL an interregnum.
The test, which this week was to
bring as followhp Of Polish events.
it being presumed that something
NPln1tN WOulu Dp lOTln'DlllUR lTOI1 lUt
Russian Polish conference at Minsk.
did not materialize for the reason that
Wall street itself lost interest in what
was taking place before Warsaw, ex-
ccpt academically, of course.
Conflict Too Remote
This struggle In Central Europe was
indeed much overworked as a market
factor, when in truth it was not and
could not be an immediate influence
on securities prices. The conflict was
too remote, both in distance and di-
rect results, and reports rather too
conflicting and confusing wholly to be
relied upon. Moreover. likely events
in the area of the fighting had already
been discounted, not by the stock mar
ket but by the commodities and for
eign exchange markets.
In trading circles efforts were made
to take advantage Of day to day dis
patches, but the character of those dis
patches after the middle Of the week
were not conducive to bear raids. in :
dicating as they did that the Poles had
not only relieved the pressure on their
capital. but had actually driven the
enemy back several miles and were in
way completely to turn the tables
What this may portend in the eventual
tide of events can only be coniectural
at this time, but 1t obviously puts q
different complexion on the peace terms
now under discussion and on the col
lateral issues which have arisen be-
tween some of the Allies.
Advices from abroad were highly con =
structive, not only with regard to the
direct issue. but in other respects also.
1t was stated for one thing that Great
Rrif n In md Eronna haI pnaphol m
amicable adjustment of their differences
growing out Of the latter's recognition
of General Wrangel.
The financial community was not
greatly disturbed at any time. but that
such an adjustment would speedily be
made. 1t was quite inconccivable that
the two leading powers of the Entente
should fall out over a matter which
was of so slight consequence as com
pared with the main issue to be faced
the prevention of the subversion OF
Europe by irresponsible radicalism.
Less Worried Over Europe
The main issue. in fact. stood out
crystal clear and minor differences be-
tween two powers, however prominent
or powerful, could scarcely muddy it.
Intelligence also came to hand that
owing to the harmonizing efforts Of the
French Government. Hungary and Ru-
mania were about to resume diplomatic
relations. This was of Importance in
the economic future Of middle Europe,
second only to the military operations
on the Vistula and the Bug.
Thus Wall street had little further
to worry about with respect to the
present aspect of affairs over there. Nor
was the domestic situation without its
favorable features. Indications multi
piled that the credit strain had been
somewhat relieved by the continued fall
in commodity prices as well as by the
early start obtained in arranging crop
financing and the probability that ac-
cOmmodation for that purpose would not
be so heavy as has been anticipated.
Two authorities We're cited in support
of this view Of the financial situation,
the Federal Reserve Bank of Kansas
City and the chairman of the Illinois
Trust and Savings Bank of Chicago.
The first states that liquidation of loans
had already proceeded far in the South
west and the banks loans from other
Federal Reserve banks last week of
something over $25. 900 900 would prove