The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1920-08-28
MONEY AND MARKETS.
Credit Situation.
For President.
he gradual improvement of trans


alton which has been effected dur
e recent weeks has permitted
somewhat more rapid movement OF
grain nd been anticipated. Conse-
quently the holdover from the preced-
ing yer has in good measure been
cared for and the new crop-moving
season has begun on schedule and I'M
der more favorable conditions than
seemed possible month ago. 1t is re-
ported from some sections of the mid
die west that bank loans to finance the
actual harvestingo the new crops
are being reduced at an earlier date
than is usually the case. While the
credit requirements of the new move
ment will not reach maximum volume
for some time to come, and whlie
easier credit cannot be expected until
the peak of the movement has passed.
the situation has improved sufficiently
to make reasonably clear that the au-
tumn agricultural demands for credit
will not be in excess of the ability OF
the banks to supply.
There are indications also that many
commercial borrowers, in response TO
expectations of credit stringency
during the fall which have prevailed
for many months, I'VE at least 10
some extent anticipated their autumn
requirements for credit. This factor
coupled with the continued tendency
toward reduced volume of business
and lower prices for many commodi-
ties, may be expected to relieve the
pressure of commercial and industrial
credit requirements. 1t must be recog-
nized however, that some little time
will be necessary for this RELIEF to
make itself manifest, because OF the
interval which must elapse before a
new policy in business bring sresults.
Money Rates.
Rates in the New York Nancy mar
ket hava ruled steady throughout the
period of July 16-August Is. CONNER
cial borrowings in tn open markeet
have continued at firm level of per
cent. Call money rates, which ruled
at per cent. at the beginning of the
period, gradually declined to about 6
per cent, at its close. This decline has
reflected, not o surplus of funds avail
ablefo r stock exchange employment,
but the reduced colume of require
ments resulting from continued stock
liquidation.
Z Securities.
The bond market has experienced
\ real measure of improvement during
the period under review. The absorb
ton by investors of corporate and par
tircularly of railroad securities has
been good and has extended to bonds
Of the second an third grade. The
general trend of prices, moreover, has
been moderately upward
This improvement in tone is reflec
ton Of the more definite and improved
position of the railroads which will
result from the settlement of the rail-
road wage question an dthe allowance
of substantially increased freight and
passenger rates by the Interstate Com
merce Commission 1t reflects, also, a
feeling that the readjustment of BUSH
ness and prices to a more normal level
is proceeding satisfactorily and that
that process will ultimately release to
the investment market a more ade-
quate supply of credit. While these
factors have occasioned a moderate
upward trend Of bond prices, the tre-
mcndous volume Of new financing
which awaits favorable market con-
stitutes retarding element which may
occasion repeated fluctuations in the
trend. 1t must be expected that at
each new level of prices outstanding
bond issues will meet with the COM
petition Of new hotations.
General Conditions.
Although specifically not much
change is evident in the general bust
ness situation from that of July 15,
nevertheless underlying intrinsic con-
ditions are slowly and steadily making
for sounder situation. An important