Evening star., 1920-12-04
BRIGHTER OUTLOOK SEEN FOR
FINANCE AND INDUSTRIES
Stock Market Survey Finds Some Improve
,ment In Conditions Over Country.
Statistics Show Betterment.

| brought about partly by the prepars-
| tons for financing the end OF the year
| requirements. In January the dehation
| Of paper currency. which always accom- =
par1ies a reduction In the public debt.
| may be expected to start. and as the
ratio Of specie to paper increases for
eign exchange will improve.
improvement Abroad.
So far. therefore, as our principal Eu-
ropean customers are concerned, the
| position is manifestly much better from
the standpoint Of the international
do business with South America, with
| the continent Of Africa and with the far
east In the demoralised state OF their
exchanges and with American banks
| unwilling to extend credit except where
the borrower puts up a margin OF Is to
| SO per cent. Some pressure may be
I brought to bear upon Congress as a part
OF the agitation to help the farmers to
revive the War Finance Corporation.
with its powers Of using government
slim chances Of Congress doing any,
thing along this line make 1t seem more
and more necessary to consider the al
tentative. which IN the formation with
private capital of big foreign trade
corporation. as is provided for under the
Edge act.
The banks, it is estimated. have lent
the huge sum of $4,000, 100000 on
short-term credit to finance our eX-
cess of exports. They have reached
the end of the rope and can do no
more On the other hand the vitality
of the investment market is just as
much a bright spot as it has been at
any time, A corporation organized
to take over export credits, having
the same margin Of safety as the
banks themselves now demand. and
prepared to make fresh loans sim
ilarly well secured. would certainly
have no trouble in floating its Sc
curfties. 1t would mean at once r
highly important step toward meet
port trade and a great contribution
toward the reduction of bank loans
and the consequent betterment Of the
dor estic credit situation.
Buxlness Interests Alert.
The business community is anx-
iously watching the reduction in iron
and steel prices to see whether this
will have the desired effect in stimu-
latine demand. So far, the trade
journals say that the new prices have
not brought in much new business,
but they do predict that 1921 will be
the biggest year on record in the
buying of steel rails. and it Is like
wise agreed on all sides that IL will
be a record year for building and
construction work generally. In most
other Industrial lines there has been
the same experience as in steel.
namely a reluctance to buy except
very gfneerly at the lower price
levels. because OF the fear Of still
further reductions. The buying
movement. according to all teachings
Of the past, will not start until prices
cease going down and begin to 60 up.
When this turn comes. when busi-
ness men feel satisfied that bottom
has been reached and the fear seiEes
them that the low prices may be get
ting away. there will be veritable
rush to the buying side. This is
what has always happened before in
a period of trade depression. and
there is no reason to doubt that it
will happen again. Meanwhile, the
security markets are demonstrating
If not conclusive signs of lasting
turn. at least very clear proofs of in
creasing resistance to unfavorable
trade news. This is what logically
occurs when banking syndicates have
taken over, as they have now, huge
blocks of stock from individuals in
distress.
tcopyright, 182O.t