Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1920-05-23
FINANCIAL AND BUSINESS
REVIEW AND OUTLOOK

Announcement that the United states
Supreme Court had decided that the
government had made out a good case
IN It's antitrust ruii against The E,a1.
ing Company and affiliated coal COM
panies was made the preicxt for a
temporary advance IN Stock market
prices this week. Although the Judges
r,ond Z 20 IA upholding the govern
fnent's contention that Al" combination
was Illegal and violated thr commodities
claus, of the Interstate commerce Act
the fact that the enormously valuable
Reading Assets would have o. D.. di,-
tributed was take ntn mean that m"
shareholders would benefit NOR. thru
dissolution that " the company had
been declared In guod legal standing
The cons ,quencc was that Reading
shares Advanced ahuui fl points u1|
Monday when the accision w1s nnnoun.
ed and many either rtorks showed a
stronger undortone In reflection q the
nnparvri guoi fortune that had come
o. Reading Ever since the STANDARD
"a Company Dissolved severed years
ego. following m. adverse decision by
the United States supreme Court. there
has been great interest shown IN the
irrespective dissolution ~ rich comnan.
les tina: were under court control
Unseiilsd stock Market.
The stock market was a Erud deal mn
settled throughout the week with N"
professional element largely IN evi.
dsnce. II was not a market IN which
the small trader was an important fac
tar There was some oid.lot buying.
however. but the general run q ouisid.
ers dfd not care o. risk the possibility
n n sudden resumption q the liquida'
ton witnessed last week. A. cons'-
auence IL the heavy selling that has
taken place. the market il In a stronger
iechinacl position. Il Is obviously. how
ever. not a market which would appeal
10 the average hard headed Spectator
az investor. Thir T. herau"" tn"r" r
too many uncertainties 90 discount and
Il IL not known Just what the price
movement viii D. tn a situation where
the market j. apt % he upset almost
fny moment The indications are that
the market H. in fnr q CONSIDERABLE" o..
Rod ~ more or ic-9 dun trading This
does not mean tina, there will not be
asurts Of activity In cetisir siucks, or
that the general lisi may not 40 times
dascios~ pronounced activity Dut the
fact Is that the ont % public b. not in
clined to pariicigaie heavily in spccul'
ton al this time.
Nstion wide Credit Strain.
Current statements q Ed raj r."
serve hanks disclose that the credit
strain IL broadening and that the inter
Cor l. IN need - additional accnmmo.
daiion. Tho New York Federal Reserve
hanks showed an inerease ini = each
reserve railo q al per cent to 82i pr
cent. ON tho other hand many u the
Federal Reserve hanks showed declines
FIR the week In tho resrv ratio. ihc
Cleveland Federal Reserve hank 70
parting "a pr rent as compared with
SOS Per cent the weul; bsfcrc. Atlanta
as per cent from a. per cent. Chtagu
SIS per cent from fo3 per cent. MINI
tapolis se7 pcr cent as AGAINST ~ per
cent: Dallas SIS per cent as AGAINST
s3.s per cent: and san Frauciern toS
per cent az aFain-t a. per cnt The
changes w,re very Interesting and paint
conclusiveiy o. The broadening ~ the
credit struin whirh cun" % o., tn nc
tor % greatest financial Importance a. u
this time. The painion nrevailed thar
these general declines IN the reserve
ratio shown by the interior reserve I
hanks meant that the member hank
fhrouahoigt the country would L. cwu
peiied 20 differentiats sharply between
essential borrowers and those who ar
engaged IN speculativ undertakings
The feeling II gaining ground that the
whole country mus, hiring about som,
definite deflation In the near future.
High Prices and Bank cans.
Advices fo0fn the agricultural sections
show that the hanks have had 90 sus ]
tain an Immense loan account which |
was frozen fast" by reason - the -
rious frcigh; blockade % which che
country has been subjected Thous
ands Of freight cars have been stalled I
on sidings switches and along the right |
70 way II the Eastern and Westein I
states A freight blockade Il an import.
ant element making for credit strain.
The public little realizes how car fam.
Inc. OF a freight blockade acts upon
the nations loan account In the first
place. u takes more credit nowadays q
finance commodity shipments than
ever before whereas. formerly a car
a wheat represented a credit Il 81 eDo
az prevailing prices the same operation