The New York herald., 1920-01-18

concrete
OF the Edge bill. The credits sranteo
Europe were small in proportion TO ner
needs Investments in British, french
and Belgian internal loans aggregated
many millions of dollars, but they couio
make little impression on the cumulative
effect of trade balances against EUROPE
nearly as large in 1919 as wheh inc "a'
was in its most active stage.
"The readiustment in foreign exchanges
cannot come about entirely through u.ne
granting of credits or the purchases oi
foreign government or corporate securpieS.
Bound up in this readjustment are mar
other factors We should however, 90 an
tha+ ia nossible to facilitate the dis
tribution among our investors or internai
loans OF solvent European nations anu 70
this end such loans should pc hsteo o''
the New York Stock Exchange.
To-day there are about twenty-five LOT
eign government issues listed III -,
york. More than half. however are ooi-
ar loans and others. like those OF japan
ave- starting loans. These loans are ue-
scribed in a few short paragraphs on tiie
daily quotation sheets. On the other nahu,
the dairy official list of the LONDON SUE
Exchange gives nearly a. full page TO nsV
ings of foreign government oouus 80
corporate stocks exclusive OF oDlisatlons
Of the colonies and provinces. rms us.
enunerates about 275 different bonds ihos.
of whose coupons are payable In Iohuoii
and from which the English investor may
make a selection from nearly every par
OF the world The Official list Oh t,,e
Paris Bourse exhibits quite as cosnoPoi
,ar !, character in its foreign department
as does that of London -
.sThe listing of the best of the foreign
internal loans on our New YORK oIocN
Exchange would, therefore, not oniS 90
sist the foreign exchange SITUATION
through broadening the market Tor ior-
h,1 would
cal step in the development of New YORK
as an international financial centre
w. l.. HENSLEY, writing for the firm
of r; w Wagner & Co.:--The actual
condition of business throughout the
country is such that enthusiasm and
optimism are generated. stupendous
economic forces are at work. People
who are up and doing are not
thinking of pre-war conditions. The
old order of things has passed. The
Steel Corporation has the largest booked
tonnage at the present time than 1t has
had since the war was at its height. The
demand for building material, merchan-
disc and many commodities far exceeds
the supply. When the Reserve Banks have
succeeded in forcing liquidation in COM
rnodites, real estate and farm lands, We
shall undoubtedly have healthy credit
situation. We shall then be able to extend
credits to Europe in volume. This process
few months time. The money and credit
situation should show marked relaxation
toward February is. From that time until
April / is the between seasons period OF
activity in the city and the country. Every
day we see evidences of Europe getting
back on her feet. New goods are arriving
on every steamer and in increasing
amounts. At the present time such
merchandise is in the nature of luxuries,
but there is unmistakabie evidence OF in
creasing production in England. France,
Belgium and elsewhere. Offsetting these
imports there is the strongest kind or de-
mand for our raw materials. Credits are
being extended.
JAMES w. BALL 4 CO.-Existing un-
settled conditions can be expected pending
an easier money market and the adoption
hy the Federal Reserve Board OF more
liberal attitude in the matter OF loans Tor
stock market operations. The economic
situation both here and abroad has as
sumed proportions too serious to permit or
ur'innitad funds, not only for new promo
tic but more especially for the inaugu-
ration Of a bull market, at least for some
weeks to come.
sBoNNARD, MILLS a co., - The
trend Of security values from current
levels and as far into the year as can
. now be estimated should be based on the
reconstruction of the worlds s economic
affairs and not on the possibility OF a
refrograde to redistribution. We take 1t
for granted that the admitted activities
in the industrial life will have a profitable
result, not only in this country but all
over the world. II we are to have political
confusion it win from time 20 time affect
sentiment. If our engagements imam
ciaIIy with other countries test our finan-
ciaI resources, as they are doing now, with
resulting high money rates or high cost
of capital, IL will have It's effect, adversely
at times but in the main benefit TO
our economic conditions IL we are 10
have further trouble with labor and re-
striction of output OF factories and farms,
values will be swerved temporarily. but
We take II for granted that In the end itI
viii be found that we have turned the
corner toward better things and that
security values will finally reflect this
change.
THOMAS GrBsON.-Cousi6erin the
uncertainties and weak spots in the pres
ant situation, L consider IL highly advisable
TO confine purchases at present to securi-
lies which have been greatly depressed IN
price by war conditions. which are not in
the hands of public spectators TO any
considerable extent, and which show n
large and reasonably assured income re-
turn on invested capital. In order to in
crease the speculative chances, we may
also add some of the low priced railroad
common stocks. II liberalization reaching
beyond the railroad group Is desired. the
copper stocks and backward industrials
specificaHy mentioned may bo added in
moderate quantities with the expectation
Of holding for reasonably long pull. i
also think some OF the public utility bonds
and stocks will do better in the near future
and will make this group the subject OF
special commcnt in an early letter.
GOODBoDY e. CO.-while we see dan
ger signals ahead we are hopeful that we
will get by the troubles OF the next few
months without n. smash-up. Wo should,
however. proceed with great caution. We
expect wages and materials to advance
sufficiently from now on to rapidly absorb
profits. Besides, with our exports OF man.
ufactures declining as they are almost
suro TO do with declining exchange rates.
competition soon will come in to decrease
profits For these and other reasons. we
advise selling most motor. oil. tire, rubber
equipment and steel stocks on bulges.
We favor holding railroad bonds and
stocks. We also think many utility stocks
win soon see better times.