Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-09-13
CREDIT SITUATION IN j. S.
SHOWS BIG IMPROVEMENT
Is Ono OF Factors That Must Con.
tinue to Impress Prices for
Some Time.
ITALIAN DISORDERS BEARlsI
Attitude OF Prcsidcnt-Elcct Oregon,
Assuring Square Deal for Amcri-
can Investors in Mexico Has Good
Effect on Market.
ny npAoDAN WALL.

NEW YORK. Sept. l2.-Three fac
tors OF market influence have seen
material development in the pas,
week and must continue 10 Impress
prices for some time. The first is
tho decided improvement OF credts
in the United States, The next Is the
disorder in Italy and the third is the
threatened strike OF British coal
miners. a fourth factor is tb"
testimony OF President-elect Obregon
that he will give American Investors
in Mexico 4 square deal. This last
factor has been no surprise. for Ii;
was tho only logical outcome of the
situation south Of the Rio Grandc.
The other factors are distinctly vital
In market effect The iirst Is bullish.
In. second tcar!sh and the third de-
pressing in its effect. but decidedly
constructive in its consequences 70
American Investors.
Hoard RrnlIzcs Mistake.
Improvement in the credit situation
In the United States has been ac-
compiished at the expense, OF gen.
crai business. The mos, important
factor OF that Improvement Is inc
Board of It's mistake in trying 70
force indiacr!minatc dcNation every :
body now realizes that mistake WAS
cising the power conferred by law TO
discriminate against profitcers tne
board laid down the general principi.
that everybody must dcflate. AS a
result there has been quiet panic
going on in nearly all lines or bus,
mess and thousands have fat!ed apo
been saved. The .profitecrs have no,
been touched for they were protected
by participating bankers.
1t !s now intifnated from Washing
hat hp q
banks VIII be permitted to fSi! TO me
80 per cent provided by law. as the
it'st line OF defense and pHrhh2. 10
The lower levels authorized by !aw
FOR emergencies. Wiih"Yt ~ creas ne
tna ruri5er Of dolla.s In the :es:r.".
The regional banks WI! be able .
0Oi. II; not less than figc,GCn,r.O
.: 500 will arriv.. from Ei"o,": dur
'nE the "iop-movirT period. thus Ia
creas!ng the possible credit EXPANSION
within the 40 per cent limit BY $780,
100000. The bank can permit a full
billion OF expansion without cndan-
gerins the banking situation. and
the law provides for such al cx
panslon.
Frozen Credits ReIcas-d.
But leading bankers do not believe
II VIII be necessary to 30 beyond the
80 per cent limit because there Is a
auickeninE OF train movements on
frozen credits are being rapidly re-
leased. The call money market every
day bears testimony TO the theory
that there VIII be no more profit
cering in money.
And besides. "a great many rich
mon have been thrifty enough 20
puck up stocks and bonds Il, the as
Consisting prices that have prevailed
and are willing TO see the stock ma.
k"t advance. There are no preda-
tory reasons for another break o..
prices IN Wall Street;
The Italian situation alarms a good
many international bankers because
~ is proof that the discomfort OF The
masses is not confined 10 the central
empires and Russia. What the CON
sequences viii be no banker darcs
guess They seem TO agree however.
watch wha, effect the Italian upris-
liz mas on the workingmen of
France. The British coal strike IS a
mater Tor immediate concern. but
american investors and business men
England has dominated the worlds
commerce very largely because Of
mage leaving the British Isles was
coal. which could be used as the
,r, OK barter in every foreign coun-
going vessels. which BY sailing tri-
angular voyages. brought back VIVA,
'he people at home needed.
Leave Without CarEuc.
Now England is importing coal and
British ships are leaving home ports
M WiIn,out cargoes;, BY reason of the
coal, the British Isles hnnJIcd On u.r
cent OF their own imports and ex-
ports IN their own ships. The United
states handled only 10 per cent of lis
iorc!Gn business. Now the limited
M , IS the coal producer OF the
n woTla. However high the price OF
i !, Z may seem 10 the people at home
~ Is iact that the American coal
nao,uccrs can undcrscll any other
,,nm,I In s-y part OF the world. So
american thipowners, through CO.
"mnerhi."n with the government at
Mnsn'nEion, Will be- able to com
,t'nu az least half of the co,nmerfe
OF the United States with ,'tbor
,rw ,riesi The shipbulIding indus.
facllii,toc oped during the war will
,innS inc United States Steel Corpora
~ IN gong to buy up the iron work.
franco and Belgium?
fron' ' nation OF such thing comes
it to ana FISTS ,5n There is no law against
capitaI me great corporation has the
1 Eth, the United States as Well as "f fos