Evening star., 1920-07-04
By I. A. FLEMING.

'dential year is too great, this great
Independence day should mark the
passing of the long, hard strain and
Fthe beginning of easier money con-
Editions. improving business along
conservative lines and less pressure
tor credit conservation
We are over July 1; over the enor-
0nous disbursements of government,
corporation and bank obligations
ano the tax-paying period of the year,
save as to the two installments on
income taxes; and by Tuesday, the
ehrst business day, the great bulk of
the millions that have been paid out
will have found their way back into
the banks to the credit of individ
nails.
A comparatively small part of these
millions has been reinvested. and it
is not likely that there will be fur
fher reinvestmentS in the near future
until there has been decided change
Tor the better in the securities trade.
ON this basis one may figure with
reasonable assurance on easier none
1ary conditions. Not that we are all
through with our troubles, but the
chances are that we are at the tor of
the hill and the manner of our de
scent into pleasant valleys depends
on the gradual and steady pace in
business
Crop reports have evidenced much
10 be thankful for; the turn in the
trend of liberty bonds from the slow
sassing to the strong tone Indicative
OF good investment buying and the
pasSfng of the distressingly low
1e@els meets with the approval of
every one. The public is buying
these bonds. not selling as formerly
Hope to Avoid strikes.
The labor situation is admittedly
on tenterhooks. The trend toward a
six hour day, on the theory of more
work-probably higher wages for all
may or may not make headway
probably not. as increased and not de-
creased production is demanded. The
danger of nationwide rail strike
seems to have been averted by the
promise of higher wage. with the
usual subsequent advance in the high
cost
With the exception of rent, and
perhaps coal and food. prices seem to
be shading to lower figures, paced by
the public back of the wish for ac-
ceteration of the movement.
This does not mean that there is
gong to be an immediate let-up in
credit conservation, for the bars will
oe up as to essentials at least until
after the crop movement, and in the
meantime the presidential campaign
is likely to bring some disturbance
until the judges have digested and
satisfied themselves as to the out
come.
Railroad Congestion.
Railroad congestion is one of the
unfavorable signs of the times, and
1t Will take time to bring order out
of the chaotic conditions now exist
ing. With federal aid, added equip
service could be obtained from the
employees it would not be long before
the tangle could be Strengthened.
with government ownership their
goal, however with the possibilities
Tor control through politics. the
promise of labor, specifically railroad
labor. is not as encouraging as it
should be- The Adamson law is still
working and the virus is taking.
Foreign Trade Conditions.
According to a preliminary report ,
OF the Department of Commerce. there !
was an increase of $55, 100000 in ex-
ports. but decrease of S64.000,000 in ]
imports in May. as compared with !
April. Exports in May amounted to |
$t1s:ooo, 600. against sss5, ,ooe. coo in !
April of this year and $604. 600, 900 in |
May of 1919. For the eleven months |
ended with May, 1920, the exports |
were $7.474eee. eco, against Sc, 304 ,000.- |
900 in 1S1s- May imports amounted |
TO $451, 200, 900, compared with S496.- |
100000 in April and $32s, ,008.eee in |
May of last year. For eleven months |
ended with May. this year, imports
were $46s6, ,oe0, ,o00, against s2.So3-
100000 during the corresponding pc
fiod last year.
Figures recently made public by the
department show that since the be-
ginning of the world war in 1914 the
United States has rolled up trade
balance of approximately $17,e0o,000.- |
o90 against the world. This exceeds
by several billions the total balance
IN favor of the United States from
1875 to 1914 The trade balance in
favor of the United States in the fiscal |
year ending in 1914, one month before |
the war began. was only S470,000,00 |
During the first year of the war it !
was $1.0s4.41s.600. and in the next
year. ending June 80. 1916, it was s2,-
135,5ss.375. During the succeeding
year the total was $a,5se,6ss.20s.
War Trade Balance.
Meantime the United States had en-
eered the struggle, and in the year
ended June 80. 1sls-the first full fiscal
Ssanea Aas ony
the next year, ending last June 80.
however. it was $4,136,562,61S. Dur
ing the first eleven months of this
nscal year the balance was only 81
7SS,451,662, but exports were Larger
. in those eleven months than in any
other full fiscal year in the nations his
tory. totaling s7.474,1s3,34s, as against
the previous twelve months record of
$7.232.2 .282, $50
Urge hOl0lnE Liberty Bonds.
The War Corporation circularized
the banks of the country yesterday
with a letter in which holders of lib |
erty bond issues were urged to hold
their securities. Coming at time
when the tide has turned with regard
to liberties, when the general public
has turned buyer in place of seller,
when the big New York brokerage
houses are executing buying orders
more freely than selling commissions
it seemed rather unnecessary al
though it may be just the added boost
needed to stimulate the buying move
ment-
A Hint to Railway Company.
United Railways and Electric Com
pany of Baltimore would probably
find the money market just as difficult
and unresponsive to an offering of
debentureS or general mortgage bonds
now as the Washington Railway
Company would, in the event of an
effort on the part of the latter to re-
coup capital expenditures.
The Baltimore corporation has is
sued car trust certificates, to the
amount of $S75.000. bearing semi-an
nual interest per cent annually, due
serially, $4,000 July l. 1921, and
thereafter 6,000 year. Certificates
are coupon and are registered. if de-
sired, as to principal The company
agrees to pay per cent income tax
The equipment will consist OF a3
new safety cars and leo new tran
cars to cost s1094.9 .9S322 on which the
company agrees to make the 1nltlal
payment of s219.93822.
a