Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-10-04
EXPECT FURTHER CUTS IN
PRICES OF COMMODITIES
Financial District Begins Week
with Increased Confidence in
Markets Course.
ny BItOADAN WAI.I,.

NEW YORK. Oct. 3.-Desplte an
uhiavorabie bank statement and the
financial district begins q now week
with distinct change for the better
IN sentiment with regard to the
Tho Increased confidence In the fu-
ture course of stock market prices
Is born OF belief that there will he
nnrtmer, reauctions In the prices OF
persistent liquidation Of Inventories
ny INC INDUSTRIAL companies will re-
lease sufficient funds to finance those
enterprises In need OF additional cap
l'al and enable the apportionment OF
q larger volume OF money for use I'm
the security markets.
Money on Securities Easier.
Large Banking houses state that
already there Is n disposition on tho
part OF the banking Institutions TO
I zen money more freely on securities.
Up TO about two weeks ago banks
and trust companies were reluctant
10 lend money on security collateral
owing to the tightness OF the money
market ana the fact that tho loans
could not be rcdlscounted at tho
Federal reserve bank.
10 Keep their funds more LIQUID.
the banking institutions placed their
surplus funds to work in acceptances
could reborrow II necessary
The banks and trust COMPANIES
continue to buy acccntances. but be-
cause OF the uncertainty now sur
rounding tho Industrial situation ara
u.sSriTmlnatinR and reducing loans to
those comparatively new concerns OF
mushroom growth. many of which. IL
Is iGSp1ect tSS.n VIII have to be recapi
begins to pinch. For this reason Tho
banks prefer TO lend on securities
Tor which there Is n ready market
ms disposition Is growing and il
spread. 1t is now much easier for
w All street TO obtain money from
The banking institutions than 4, Mad
ocen Tor more than year
lntcrcrt Yield May Itccrdc.
Increase IN the supply Of money
ior dealings in securities is expected
10 result In n lowering OF the yield
bankers arc Of tho opinion thai ,"'s ths
PEAK Pea, has been reached with s per cent
me interest Yield Ia expected 10 be-
gin rcceding unless the Investment
n,aarket Is swampcd with new Issues.
IN mat instance no recession would
ee expected until the undigcstcd Of
'eT!nSS were absorbed.
investment bankers state that there
i u IN sum Unusually n, large surplus OF
,lme In all parts OF tho country. This
~ declared to he especially true with
regard to the medium classes MS evi-
usns.d ny inc fact that average sub
smallest In tho history OF the bond
market New offerings are daily
coming TO hand and those companies
and nations which about two months
ako were unable to finance their re-
quircmcn;s arc now readily having
their needs fillcd
New railroad financing IL ncg,i-
The inability OF our arteries of
commercc TO secure new funds is
delaying and holding up improvement,
siandiep er rms npGIgrams, Notwi,h
portation companies are reporting
steady Improvement In the handling
OF the business Of the country.
~ revival OF confidence on the pnrt
or me public in the future OF trans
better inquiry reported:
p, MaiIrond Mergers HUNDRED.
RumorS persist OF probable rail-
r rGmd oco1nsoiidntions. but these are
n nSSainnt bankers and Howard Elliott.
who says nc slept with the trans
portation act" says that merr"rs
canno, be put through until the In
mulates It's plans for the consollda-
,!on OF the railroads OF the country
INTO limited number OF systems
rr'ec-cutt!ng Is becoming the or
companies arc expected 10 be FOL
lowed by the tiro manufacturers. who
~ IS reliably stated. have about
'"re. months output on their shelves.
active preparations are being made
by me New York stock Exchange to
create much broader market for
iofs ign securities An important step
taken this week when the exchsnge
is expected to make an announcS-
meNt OF the appointment OF a sub
committee. the duties of which viii
be I" formulate plans for the listing
q! foreign securities