New-York tribune., 1920-06-21
Trade and Finance
Developments of the Week
and Their Bearing on
the Outlook

ative securities. That part of the
financial community interested in the
vagaries of stock prices seems always
TO be waiting for something to happen
This is probably why the movement of
stock quotations is supposed to have
q certain prophetic quality. If the
stock market last week reflected any
thing or was prophetic of anything,
outside of an unwillingness of the pub
lie to buy or sell stocks, it was hard
to discover what it was. The market,
with the Republican convention a mat
ter of history, sank deeper into tho
rut of inactivity and professionalism
In which it had been travelling for a
fortnlgn or more. 1t was by far the
dullest week the Street has experienced
in many months, and what perhaps
made it all the more discouraging to
the trading element was the fact that
few observers could see little hopes
for more active trading in the near
future. Stocks IS a general thing
closed about whore they started. with
out much happening in between.
A week and a half AGO the Street had
its eyes on Chicago and insisted that
out OF the convention would come de-
velopments that would be made the
basis for resumption of constructive
operations. But, contrary to expecta-
tions, the nomination of a conservative
to head the Republican ticket proved
valueless so far as being a market
factor of special Importance. On Mon
day stocks actually sold off, and there
were those in the financial community
who went SO far as to say that the
market was registering disappointment
over the nomination. The declining
movement soon lost momentum. how
ever, and from then on stocks did lit
tie more than back and fill, few spe-
clal issues standing out prominently
In three of the five full day sessions
at the exchange less than 100000 shares
changed hands. Naturally this failure
OF the market to move in accordance
with expectations caused a great deal
OF disappointment In speculative cir
cles and the action Of storks gave the
impression that traders were not dis
posed to accept the outcome of single
pollucal convention as an argument for
buying stocks. The Street is now wait
ing for the Democratic convention.
The nomination of Senator Harding
by the Republicans appears to have
given general satisfaction in financial
circles, even if 1t has not produced
great amount Of enthusiasm. Wall
Street seems confident OF Republican
victory in November.
1t Is not easy to arrive at sstis-
factory Judgment as to the immediate
future of speculative stock prices, so
many different factors have to be con-
sldered. The drifting market in recent
days In itself shows that the people who
trade In stocks are not at all certain
or their ground, and are therefore r..
training from actively entering unon
new commitments. A canvass Of the
Street indicates a rather widespread
Delef that stocks will likely continue
IN their present groove of relative in
ertla for some time to come, certainly
until there are signs of a greater do.
gree OF ease In the credit situation.
Bankers of standing have been express
ing the opinion that the present credit
strain would work it's own cure md
that Federal Reserve Bank rates are
now high enough to check further un-
necessary borrowing. That NAV we'll
be the case, and probably is, but there
IS evidently long period ahead Of
strain which cannot help bu. check
speculative expansion in all directions
Inc money market passed last week
through a period Of extraordinary
strain with perceptibe difficulty. Bor-
rowers at the Stock Exchange obtained
call loan accommodation at as low as
b per cent at a time when payments
through the banks were running into
huge figures. On one day alone the
payments incidental to tax collections
government interest disbursements and
other Treasury operations exceeded
S8oooOO,000. At the close Of the week
call money rose to per cent. From
now until the end of the month tho
money market will be preparing for the
heavy end Of the half-ycar disburse-
ments, which always are large. After
July l there should be period of
somewhat easier money.
Mr.. Lamont on his return to New.
York from his mission to the Orient
gave assurances that the Chinese con-
sortium had not only come into being as
an official entity, but would probably
soon begin to function in the matter of
financing China's public needs. The an
nouncement that bankers of four na-
tons would meet in New York in Sen
tember to organize the four power group
distinctly added to the prestige of this
city as world financial center. The old
consortium used to meet in London and
Paris. Although China's needs are stu
pendous, financial observers do not an
ticipate gigantic loans in the near fu-
ture, because of the shortage OF can,ta,
throughout the world. With the de-
nand for funds outstrlpping the supply