davidaulloa/AmericanStories huggingface dataset:
The Washington herald., 1920-12-12
LONDON EXPECTS
BETTER MARKET
INCOMING YEAR
Readjustment of Prices
And Consumption Is
Looked For.
PRESSURE is LESS
Bankers Will Be Called Upon
To Lend Taxes Due by
Merchants.
PRESSURE is LESS
Special Gable Dispatch u
The washtnStsn Herala

spe6al Gable Dispatch q.
The wsshinstsn Herald
LONDON. Dec. l1.-There is dis
tinctly more hopeful feeling that
economic conditions will improve In
the new year and that there will
then be general readJustment. Re-
tail prices are expected to fall
heavily, thereby inducing consumers
to purchase, and q marked improve
ment is expected in wholesale prices
OF food and raw materials. Efforts
continue to be made In London to
supply the continent with additional
credit when the new year arrives.
Bankers are expected to stop their
policy of contracting loans. and to
give substantial amount OF new
credit in order to finance both home
and foreign trade, more particularly
the latter.
The main cause Of Improvement in
the position of the bankers has
come from large issues OF capital by
Industrial companies to investors
which has enabled many banking
loans to be redeemed out of the pro-
ceeds of these issues.
Anxiety L. sabsidfag.
A prominent British banker, well
known in America and with large
commercial interests. both at home
and foreign. says he is much less
anxious about the immediate situ-
alton than he was some months ago,
and that now he has a substantial
margin OF lending power. How long
the improvement will last cannot be
easily calculated clearly. Demand
upon bankers for loans will be very
great. both for home and foreign
purposes. and will be likely to alb
sorb any increase Of facilities.
In the coming quarter British
capitalists will have 10 pay great
sums to the chancellor OF the ex-
chequer for income tax and excess
profits duty. and umch OF this money
must be borrowed from the bank
ers. Maintenance OF British ex-
ports to the continent will continue
to necessitste the creation OF much
new credit.
Most of this credit will have to
be provided temporarily by bank
ers. pending some plan Of permanent
credit.
A small amount of credit has been
raised in London for the continent
through underwriters and insurance
companies. who have guaranteed due
payment OF debts at maturity. The
premium demanded is, however. very
substantial. and. moreover. money
needed to pay for goods has TO be
borrowed from the bankers. The
extent of such operations must nee
essarily be limited by the heavy
premiums charged, by the amount
of risk which underwriters are en-
titled to incur. having regard to
their total risks and other reserves.
and by the amount of new money
which bankers will be in position to
lend.
Copyright. 1870 Public Ledger Col