Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-01-17
TRADE IN STOCKS
HINGES ON MONEY
Closing Week Shows No Pros
pect OF Even Relatively Cheap
Supply Of Currency
SPECULATION IS CURTAILED
stock sales today on the New York
eNchanTe. as comn''o' NV the Evening
sun, totaled 474. 400 shares.

"Nh odNS tUUdN OH Une New YORK
eNchan9e. as con,n'Iod NV the Evening
Sun, totaled 474, ,4Oo shares.
New York, Jan. 1.-THE New York
Evening Suns closing financial review
today says:
Apparently the representations made
by the Federal Reserve Bank to mem
Der institutions of the necessity for cut
ting their loans and the formulating of
specific plans for carrying out their pur-
pose was interpreted by Wall street as
promise Of better things in the money
market involving the possibility of
easier borrowing rates next week.
AT any rate there was a good deal of
short covering in the first fifteen min
utes of the short session of the stock
market which carried industrial prices
forward point or two.
Ibis demonstration was followed by q
setback which reflected efforts of the
bears to feed out the technical position.
Lhey succeeded in neutralizing a good
part of the initial gains, but they had
10 give way quickly and the advance
was resumed even more vigorously than
petore. Trading was not particularly
aggressive save in the case of the larger
snort interests who had something more
tnan ehe spectre of the usual blue Mon l.
daE to take into their calculations.
Inc snort interest, in truth, is SO
large that once real covering spurt
should get under way there is every
chance that it would carry far. To give
such movement its starting shove
would not be very difficult under the
circumstances, because the spectacle OF
easy money rates, quite regardless OF
whether the supply of funds should be
1orthcoming in volume-a thing much
TO be doubted-would have strong ser
tlmental effect in association with other
bullish factors such as the decision of
the league of nations to lift the Pacific
blockade against Russia, for example
and the fact itself that the league is al
last reality.
Moreover the industrial situation OF
the country, rejecting extraordinary de =
mand for most of the basic commodi
ties, has of late been receiving more
and more attention and thought.
The technical position of the market
is such as to make these considerations
.
though anv fundamental Improvement in
the securities market is likely to be
slow and gradual if the money supply
is to remain limited.
Tieht Money Market
The course of loaning rates in the
week closing today showed conclusivelv
that there was no immediate prosDect
of cheap. or even relatively cheap
money. The most potent influence in
governing securities prices was the in
ability of anybody to pierce the veil OF
the future, say the next two or three
months. and what they might bring in
the way of money supply.
A great deal has been said about
speculation. stock and commodities. bu,
it would not be verv surprising if il
should be discovered that while the tall
has been going on hlithelv, speculation
had been very materially curtai'ed
even, perhaps. to the point of ceasint
to be cause for diversion of fund.-
from commercial and industrial employ
ment.
This possibility was suggested not a,
an argument that money is likely to b.
easier. but rather that there has beer
a distinct awakening to the necessit,
of quickening efforts along strictly eco.
nomic lines. efforts which will requir,
financial backing of tremendous proper
tions and which will test resources t.
the utmost.
Concrete evidence of this awakenin,
was seen in the memorandum signed b!
representative men from the LEADING
powers of the world. issued on Wed
nesday. The memorandum called fo
an international economic conference t.
consider the best means for rehabilitat
ing the financial and commercial struc
ture of the world.
An Appeal to Work and Save
Its purpose was set forth by on
of the signatories as follows:
"One might sum up the document a
call to the people to return to pre-
war standards of reason. an appeal t
| the reparation commission for wis
moderation as to the best business pol
icy for all concerned; an appeal t
governments to arrest imitation an
meet inevitable burdens by increasin
their revenue rather than by further in
creasing their debts; an appeal to tn
people to work and save; and finally
an appeal to leaders of commerce an
finance to get. together in order to stud
the problem dispassionately and take
| up as DuslucaS pIolloSlllOu. lCIy III
on independent action rather than gov
ernment Intervention. Government
must be relied upon, however, to re
move as rapidly as possible the OBJ
stacles that impede such a course"
The memorandum was inspiring j
the sense that it represented deter
mination to attack the problem of eco
nomic rehabilitation on business prin
ciples, that the tree may derive nutri
ment from fruitful soil by restor
ing the roots to q healthful condition
But the process cannot be completed i
day and meanwhile immediate prof
in many lines must be sacrificed for tn
ultimate nroft Viewed thus, tina
phase of Wall street activities emhrac
ing investment and speculative dealing
in securities was given scant stimulus
Professional sentiment was naturall
bearish under these circumstances an
the market following dwindled. TIL
situation was not relieved by acri
criticism of metropolitan bankers ex
actions for money loans. On Monday
the call rate went to IS per cent; o
Tuesday and Wednesday to Is pc
cent; on Thursday to 8 per cent, clos
ing at 6 per cent, and on Friday re
newals were Per cent, the week clos
ing at per cent. On the closing da
of the previous week renewals wei
made at 6 per cent and the last wa
at 10 per cent. but this did not pre-
vent the following week from witness
ing Is per cent money.