The Bridgeport times and evening farmer., 1920-08-23
SITUATION IN . MONEY MARKET
 IS MORE FIRM
General Conditions Show Much Improvement in
 Last Few Months.

The gradual lmproveme ment or trans portation which has been effected during recent weeks has permitted a somewhat more rapid movement of grain than had been anticipated. Con- sequently the hold over from the pre- ceding year. has in good measure been cared for and the new crop moving season has begun on schedule and un- der more favorable conditions than seemed possible a month ago. It is reported from some sections of the middle west that bank loans to fin ance the actual harvesting of the new crops are being reduced at an earlier date than is usually the case. While the credit requirements of the new movement will not reach maximum volume for some time to come, and while easier credit cannot be expected until the peak of the movement has passed, the situation has improved sufficiently to make reasonably. clear that the autumn agricultural de- mands for credit will not be in excess of the ability of the banks to supply.
 There are indications also that many commercial borrowers, in re- sponse to expectations of a credit stringency during the fall which have prevailed for many months, have at least to some extent anticipated their autumn requirements for credit. This factor, coupled with the continued tendency toward reduced volume of business and lower prices for many commodities, may be expected to- re- lieve the pressure of commercial and industrial credit requirements. It must. be recognized, however, that some little time will Be necessary for this relief to make itself manifest, be- cause of the interval which must elapse before new policy in business brings results.
 Money Rates.
 Rates in the New York money mar ket have ruled stead throughout the period of July 16-August 15. Com mercial borrowings in the open mar is per cent. Gall money rates, which ruled at 9 per cent. at the beginning of the period, gradually declined tC about 6 per cent. at it's close. This decline has reflected, not a surplus o1 funds available for stock exchange employment, but the reduced volume i of requirements resulting from con- tinued stock liquidation.
 Securities.
 l The bond market has experienced . real measure of improvement during | the period under review. The albsorp. ton by investors of corporate an6 particularly of railroad securities has been good and has extended to bonds 1 of the, second and third grade Int general trend of prices, moreover, ha. | been moderately upward. | This improvement in tone is a ref1ec l ton of the more definite and fnN1rov 1 ed position of the railroads which vii result from the settlement of the rail road wage question and the a1lowanc' l of substantially increased freight ant passenger rates by the Interstat' Commerce Commission. It re | fleets, also, a feeling that the ad 1 justment of business and prices to l more normal level is proceeding sat | isfactorily and that this process vii | ultimately release to the investm en
 market a more adequate supply o credit. While these factors have oc | casioned a moderate upward tren of bond prices, the tremendous vol | un1e of new financing which awaits | favorable market constitutes a re tarding element which may occasio repeated fluctuations in the trend It must be expected that at each ne7 level of prices. outstanding bond is sues will meet with the competitio
 of new flotations.
 General Conditions.
 Although Superficially not muc
 change is evident in the general bus
 mess situation from that of July +