New-York tribune., 1920-06-07

cry in stocks. It has happsned In other
Presidentiallvears, and history has way
of repeatingsitself even In tho Street.
Unless something happens overnight
to increase tho washable supply, and
that does not; seem likely, the amount Of
funds at the, disposal Of the stock mar
ket will continue limited for an indeA-
nito period. II anything. tho present
supply may be.further eurtailed betwson
now and July I, for che demands upon
the banks for. .dishursements in connec.
ton with June Is and, July payments
will be extremely large. Even under nor
NAL conditions the period into which We
are now entering is.ons Of great strain.
It 10 likely to b sven moro 80 this year,
in view Of tho general credit situation.
For this reason stock market borrowers
are likely to have 70 pay high call loan
rates again, as contracted aytth tho
per cent rate that has obtained most Of
the week just ended. Taking tho money
situation as q whole, however. it seems
to be much improved from what 1t was,
say, two or three weeks ago, when the
railroad tie-up was at its worst. The
advance in tho discount rate Of tho Re-
serve bank.from 8 to 2 per cont on COM
mercial bills has bssn followed by little
change in open market rates, which. had
already gene up: But conditions In the
commercial money mAxikst seem to have
become more stable, and there is grow
Ing belief that tho effects Of measures
taken to check expansion and cause de-
aation will soon begin esrSs .4elti direct
~ in an easing in sstss. e<ill, no i'm
portant lowering Of rates can be looked
for so long as it Is the policy Of the
Reserve Board to.oheck now borrowings
and bring about'a contraction in out.
standing loans.
In tho investmsnt, market, bankers
again learned during Tho last week thai
demand exists for . limited quantity
Of attractive new securities. The $1o,.
ooo, 900 Issue Of Union Pacific equipment
trust certificates was oversubscribed fif
teen minutes after tho books formally
opened, and tho bo.ooo, 900 Belgian loar
was fully subscribed by the end Of tn,
week. Tho latter operation marked tn,
first foreign accommodation since tn,
sals Of Pennsylvania bonds on = pc,
cent basis definitely placed the market
on higher plane. Belgium had to pa,
the price to set funds With which to pa,
OF the acceptance maturity on June 80
and, although there II no question that
the spirit Of brothsrly love failed t.
hold down the cost Of credit, Belgium
for all that, Jared better than she woul.
have il it had been necessary to bu,
dollars with francs 1t the present rat,
IN the open market.
Tho present Is an unhappy time fol
those who must go into the open marke
place and borrow money. But conversel,
1t comes close to being the gold
en- age for folk With funds K
invest. The Federal Reserve agen,
rightly observes In his curren,
monthly report to the Federal Re-
serve Board on business conditions II
this district that "thsrs seldom has bee,
such IN opportunity for rsmunerativ.
saving ~ now, whom = givsn sum /.
spent win buy 20 little and II saved ant
invested will yield such large returns
Liberty bonds, for exampls. are now sell
ing at market prices which for the tax
able issues yield from about per cent
TO ~ per cont. They are the safes
and most readily salsbls Of all invest.
msnss. Should pris3t later como down
part Of the ssy,A invsstsd in them