The Dolores star., 1920-07-16
BUSINESS CON-
DITIONS IMPROVE
CREDIT SITUATION SECOND HALF
OF YEAR is STILL UNDER
STRAIN.
CAR SUPPLY BIG FACTOR
BANKERS WORKING TO PREVENT
CRISIS IN AUTUMN; BUY
ERS WARY.
Western Newspaper Union News Service.


New York. July l2-The turn into
the second half Of the year has been
accomplished hy some cheering events
for business and finance, although
many difficulties, long present, have
not been lesscncd. The general credit
situation remains in a state of strain,
and IL is certain that throughout the
summer bankers will act with II single
eve 10 the prevention of II really acute
position in the autumn.
The very fact that the loan market
of all varieties of accommodation VIII
he guided conservu. lively speaks for
the avoidance of some tension i'll the
crop moving period. and the hope is
expressed in banking quarters that the
taking of time by the forclock may
avoid 50 extreme Il burden upon credit
as was feared II month ago.
knowledge that the underlying stu
alton of credit had not been altered
at all by the satisfactory completion or
the midycar settlement seemed last
week To warn the speculative follow
ing p1 STOCKS tlIh' surface EonhllIblS
should not be mtrustcd too far
Sentiment faNOring IL relatively easy
money situation was not sufficiently
strong to lull the lurking idea that
there might be numerous oCc;lS ons
during the summer when quick run
up" Of the call rate would be "nbar-
RAISING to persons carrying long lines
OF stocks.
is decidedly mixed considering the
ma jor lines of production and diSlribu-
ton. Commodity prices, as whole,
declined in June, as compared with the
May level, but the movement was high
ly irregular Textiles, breadstuffS, live
stock, hides and leather declined, while
coal, coke, building materials and
chemicals, together with important
provisions which play II vital part in
the cost of living
To II degree rcccSSionS Of activity in
some directions are offset by heavy
demand in others, which tends 10 con
fuse the outlook. Thus, the evidence
supplied by closing textile mills tells
of depression in this field far more
| important than seasonal slackcning
would bring about, while at the same
time the consumption Of articles used
in construction work. steel, cement,
lumber, etc, is ovcrtaXing the protuc-
erS.
\ survey Of current conditions re-
quirc allowance by reason of persist.
cnt railroad congestion. Pig iron pro.
ductiOn IN June was at Il rate of 1000
tons per day in excess of the May out.
put, which indicates active operations
of steel plants, but lack of adequate
transportation facilities is causing q
great amount of finished material. ant
iron as well, to he piled in mill yard.
until ii can be moved
Whether or not July reinvestmen
| funds, derived from interest and divi
dend payments, is the main factor ir
the market just now, the demand fol
investments has been substantial,
more active this month than last. The
Swiss government loan of S25,OOO, ,OOt
and the offering Of S6OOOO,0OO Armour
X Co. bonds last week We're quickly
taken up. and the success of the under
takings f"resladows more in the near
future.
ii Is expected that the requirements
under which railroads may obtain per-
mission from the Interstate Commerce
Commission to float loans will shortly
be clarified, for several of the leading
companies have new borrowings under
consideration.