The New York herald., 1920-01-20
News and Gossip
Wall Street
MARINE STOCKS AGAIN WEAK.

MARINE SIOCAS AGAIN WEAh.
Marine stocks were again weak. Inter
national Mercantile Marine sold down to
3S5s, a new low for this movement, but
made at 40si, net loss of rs. Continued
weakness i'll the marine shares is at
tribued to the general decline in ocean
shipments. Imports and exports are both
at low ebb. An official of a marine COM
pany said yesterday that the corporations
generally expect bad" year in shipping
fife. They base their opinion on the
adverse condition OF foreign exchange,
which prevents European countries buy
ing American products and on the failure
to establish foreign credits. The gov
ernment will soon allocate number of
ships it has built and is building. They
will add to the fleet OF ships now carry
ing but n small amount of freight to and
from European ports.
SEE DEFLATION STARTED.
In the view Of important bankers, the
recovery of the reserve ratio of the Fed
eral Reserve Bank Is the first indication
that deflation Of commercial loans has
begun One of these bankers said yes
terday that contraction OF security loans
has been accomplished and that eontrac-
ton of commodity loans is starting. In
the view of these observers. contra ction
of commercial loans will be attended by
deflation OF commodity prices. They be-
| lieve that the peak of high prices has
been crossed, and that the way from this
time forward lies downward toward lower
levels Whether this deflation will be at
tended by a contraction in industrial ac-
| tiyitv is a moot point Some bankers be-
! leye that there will be a gradual decline
in industrial activity during the process
Of price rcadjustment How far that de-
clire will 20 none ventures to predict.
5-YEAR BELGIAN NOTES POPULAR.
According to bankers identified with the
flotation of the new Belgian government
notes issue Of 81. 900, ,ooo. that offering has
been doubly subscribed. II is said that
tho subscriptions to the one and the five-
year notes respectively have come IN the
ratio of one to three. That is TO say Tor
cach subscription for a one year note
there have been three for five-year
note. The latter are deemed moro attrac-
tive because OF the greater play given TO
the Belgian exchange feature. On the
other hand, investors desirous OF obtain
ing short term note have shown pref
erence for the one-year notes.
HAMMER TEXAS AND PACIFIC.
Texas and Pacific was one OF the stocks
which tho bears. looking for weak spots
in the market, were inclined to sell or
rallies IL is one OF the so-called "oi
/
it's territory the road has enjoyed a large
increase i'm traffic and consequently ir
earnings II also has been doomed on talR
of possible oil discoveries on its right OF
way. When the oil boom was at its helgh'
last year Texas and Pacific scared to 7o1s
which admittedly was an extraordinary
price for the stock of the company In the
hands Of q receiver. Since the JeXas on
boom has been waning Texas and Pacific
z1it, fv1er Cfa "A
present prices, however, IL is regarded ms
out OF line with other railroad stocks. II
Is selling within three points of Missouri
Pacific, a thoroughly reorganized road.
Texas and Pacific owes sS, 900 in prin
cipai OF outstanding bonds on which 1t has
dcfaulted. Interest accumulations must
n be added TO this huge debt. IL is obvious
that even II earnings have improved u
can scarcely escape n reorganization.
Further liquidation of Texas and Pacific
and lower prices appear inevitable.
AMERICAN LINsEED At NEW HIGH.
American Linseed made n new high on
the present movement yesterday when IL
sold at &2t. Important news on the
financial rcadjustment plan OF the man
agement IL expected soon. AS heretofore
hintcd in this column. the scheme Is to
ca pitalize tho securities of the subsidiary
companies in a merger These securities.
all OF which were acquired by tho Ameri-
can Linsecd Company. are held in the
treasury of the parent company. IL is said
that when the consolidation of the sub
sidiarics into one corporation is effected
II will be possible TO nay considerably
higher dividends on American Linsecd
than is possible under the present ar
rangcment.
NEW BUYING RATES.
News that revised plan for financing
equipment purchased by the government
for the railroads had been accepted by the
railway executives started a buying move
ment in these stocks yesterday. Congress
and railroad men also are getting closer
together on legislation and completed
bill acceptable to both houses OF Congress
is expected soon. on the other hand, few
railroad men, IL is said believe that the
government will be able to complete ar