Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-03-08
GOSSIP OF THE STREET
GOLD RESERVE BELIEVED
UNEARTEzED IN ENGLAND
neorh Made by Henry DAVIDSON on EUe OF His Departure
for Europe Considered Significant by Bankers

90 FAR as business was concerned
the half session on Saturday los,
night as well have been holiday in
brokers' Offices in this city. Wires were
down and service generally was un.
satisfactory. ..
The rumored $25, ,OOO, 900 gold import
sti'i occupied the center of the stage
In the financial district and IL was sur
pricing to find quite a number of hard
headed financial men who still believe
there is something to IL.
One Of these called attention to n
statement attributed to H. p. Dawson,
OF j. p. Morgan "a Co., when he
was leaving New York recently on a
trip to Europe. It was said that Mr.,
Dawson said in an interview, Just as
he was sailing, that history would be
made in his absence. Some people be =
neVe that Mr.. Dawson has unearthed
some gold reserves which no one knew
ABOUT outside small group of English
IL Is said that the real truth regard =
ing Mr.. Dav,son's statement Is that he
refused TO give an interview and that
some reporter anxious for a story sug =
sested that history would be made in
Mr. Davison's absence, to which Mr..
Lawson gave a mild assent.
"A broker said the reason for the
urop in the call money rate on Friday
20 SIX per cent was because the country
banks, which usually supply large
proportion Of this money, had been
refusing to send their surplus funds
Tor that purpose to New York for any
rate lower than 10 per cent, but the
demand for It at that rate was SO small
that they concluded to change their
tactics and that the news of the rumor :
ed heavy geld imports had been the
principal factor In Fastening their
Below are some expressions of opip
ION by well-known financial concerns.
on current matters which have a bear.
ing on both the business and financial
outlook:n "' '"'
Mechanics and Metals National
Sank, N. Y.-Though the exchange
rates are not in themselves so important
as they are often thought to be, they
are OF great Significance as barometers.
ihey are not the chief evil, but they
indicate the chief evil, and that is the
iact that our excess of exports threatens
10 disappear because our European
customers will lack the means of pay
ment: They cannot pay without
credit, and our extensions of credit seem
TO be coming to stop. Their need of
goods has been and Is still so great that
they have been and are still willing to
pay the exorbitant prices brought about
py the exchange rate; but they cannot
pay those prices II we will not even ex-
'eh1 them the credit to buy the goods.
Our trade with Europe will fall off
gradually in any case. No one can ex
pect 1t long to continue in its present
unbalanced state. Europe's abnormal
needs, the result of shortages of goods
brought about by FIVE years of war.
must soon decline not only as they are
filled BY goods from us, but as Europe
returns to production. Mere extensions
OF credit, no matter how generous, will
not ward of this decline. Credit de-
mands interest; credit must be repaid I:
and the business men of Europe will 90
into debt only for goods that they need.
Chandler Bros. Co.-The rise in the
railroad shares incidental to the passa re
and signing by the President of the
bill covering their return to private
ownership eliminated last Saturday
when Rock Island made its rather sen
sational advance to 41A, or nearly
eighteen points above its low price of
only ten days previous. The perfor-
nance, including the elimination, was
unique to Wall street, which anticipates
events and having partially or wholly
discounted the benefits or injuries can
usually be depended upon to adopt the
contrary course when an expectation
becomes reality. Thus without pref
udice to what may later come in a
secondary movement, 1t is quite usual
to see prices advance on the announce
ment OF bad news and decline when
good news Is officially made known. The
generally accepted theory for this is
the taking Of profits when either good
or bad certainties follow the uncertain
or anticipatory period. So 1t is that
whatever benefits are to be derived by
the railroads from the adopted half
way measures, with the roads still un-
der partial government or political con
troll, and with new form of admins
tration consent required for all impor-
tant acts looking toward reconstruction
and new birth. the market values have
already experienced shrinkage of one
to five dollars per share from the high
altitude reached February 2Sth, the
date of the legal enactment.
Guaranty Trust Co., N. Y.-David
Franklin Houston. the new secretary of
the Treasury, has expressed himself as
satisfied that Europe is making much
proeress toward reconstruction. declar-