Evening star., 1920-01-11
PREDICTIONS AGREE
OUTLOOK IS GOOD
Past Year Called "Hectic, !"
Trust Company BuIIe-
tin Optimistic.

forecasts customarily made at this
season of the year is that the last
twelve months may well be described
as hectic and that the year now
beginning should be one of the best
in the history of the United States.I
Commenting on the business con-
ditions of the country. the Guaranty
and Trust Company bulletin says:
The world shortage of goods con-
clamoring for food. raw materials
and machinery. America has the
things the world needs. and the labor
and capital to make them available
to the needy. but labor is restless
under better wages and shorter hours.
and capital hesitateS to extend credit
while the terms of peace are un-
known. Those who see the oppor-
tunities. and who realize the only
true remedies for the past. and the
the country to work farder and to
spend less. There is no presen. in
dication of decline in ricas. Pust-
ness everywhere is good. labor rs in
shadows to dim the bright prospects
of America during the coming year.
Money Market Data.
Announcement was made on De-
cember 80 by the Federal Reserve)
Bank of New York of the establish
ment of single rate of IA per
cent for all advances not exceeding
fifteen days and for all rediscounts
not exceeding ninety days. The
preferential rate to bills secured by
war paper over bills based upon COM
mercial transactions is thus elm
mated. The bank declared that there
was no longer need of making its
rates conform to the fact that the
government needed large sums of
borrowed money and that citizens
must be assisted in their efforts to
aid the government by anticipating
future savings The income of the
government now exceeds its exDendi-
lures. and in September there was
actually a decrease of $400,OO0,9OO in
the government debt.
"Call money was high during the last
three days of the year, fiuctuating from
mess day of the year the rates were
s and Is per cent Renewals have been
at Is per cent for several days Time
money for all dates has ruled from
~ to per cent.
Bradstreet's Comment. A.,
Bradstreet's says:
Trade and industrial reports continue
in marked contract with the usual ad-
vices of post holiday quiet current at
this season and are especially at vari-
ance with those received at this time
a year ago, when doubt and uncer-
tainty had succeeded the buoyancy fol-
lowing the armistice and when industry
was slackenng, price uncertainty ruled
and new buying was cautious. The past
week has in fact seen aggressive
strength in both immediate and future
buying, well attended clearance sales
at retail stimulating business. despite
rather unsettled weather and bad roads
/! in city and country, and activity in buy
| ing from manufacturing and industrial
4 hn Ia
! well filled condition of order books and
buyers eager to assure themselves of
/ future supplies.
| The iron and steel industry is easily
| first in this column and new buying
! is very active, but the slowness Of
administered by the steel followed by
| the coal strii:c is reported to be
further congesting order books. HERE.
as in the lumber industry and$lu
| the grain movement, scarcity of cars
| is a bar to fullest movement. coal and
coke supplies reaching the mills in
| insufficient quantity while trade in
lumber is delayed or checked by lack
| of transportation, and grain move
ment is backward with a natural ef-
j feet on prices. The fact is that the
country's railway equipment is not
equal to the task imposed upon it and
delay in railway legislation tends to
/ further hamper the roads in their
| work of recuperation and repair after
| two years of government operation.
The railroads this week placed orders
| for 100000 tons of rails at western
mills. but aside from one large car
order the buying of other equipment
| has been light. This has been more
! than made up for. however. by active
| general buying Of all kinds of finished
! iron and steel with increased demand
/ for structural material, pipe. and, in
| crude forms. pig iron. noted.
| Business failures for the week end
i ing January numbered 129. which
compares with 81 last week, 119 in
the like week of 1919. 324 in 1918,
| 3S1 in 1917 and 427 in 1916