The Bridgeport times and evening farmer., 1920-04-06

eral Reserve Bank of New York and l may tend to bring the reserve percent l age of the system as a whole to a decidedly better level at the end of the current week if the banks have had fair success in restraining the increase in their loans and discounts and hence in their deposit liabilities. According to the last report the re- serve ratio was slightly off, but only fractionally continuing to stand at about 42.7 per cent, as it has for
 some weeks past. The question in
 connection with the new gold is whether the regular spring increase in the demand for loans will suffi-
 ciently enlarge the liabilities of re-
 serve banks to offset the effects of
 the gold. Until this is known posi-
 tive predictions as to money cannot safely be made. During thep ast week
 the renewal rate has been about 8
 per cent while call funds have var
 jed from to 12 per cent, which is
 much higher than they saould nor
 mally be at this season of the year. I The rates for the future will be
 largely influenced, although, of course
 not determined, by the policy of he reserve systems with respect to con l tinued contraction of operations. The report of the Federal Reserve Board
 
 the week in reply to a Senate res.
 olution inquiring the reason for high
 rates for call money was a conserva- l tive dccument which furnished a l careful, accurate review of condi- l tions prevailing in the call loan mar ] ket It should put to flight any possibility there may have been of efforts at legislative interference with
 conditions in the money market.
 The Railroad Situation
 | Earnings on not a few of the stand
 ard railroads have shown decided improvement within the past week or two and the prospect for their financial future is accordingly in- proved The apparent drift of things in connection with the hearings be- fore the Interstate Commerce Com erty has likewise been of an encour- mission relative to the method to be employed in valuing railroad prUp- aging description. Railroad execu- tfves expressed themselves as fairly
 well pleased with the outlook. The pre-convention campaign of the var iious Presidential candidates has been
 singularly free from atlaeks on capi- tai and from suggestions of unfor-
 +unate types of political discussion
 likely to develop during the autumn
 months. Apparently the nation has had a. severe lesson in connection with l the railroad problem and IS likely to profit by it. Nevertheless the stocks l of the railways themselves have re-
 mained extremely inactive during the 1 nast few days and their variations have been decidedly narrow. On the
 whole the tendency has been toward
 lower levels due principally it IS said i to foreign sales Investors are evil | 4n heavy fresh commitments in the rails until thev can know something more l definite both as to governmental pol icv and as to the earnings prospect The fact that equipment shares have increased so markedly in cur rent value is evidence Of belief on the | mart of the general public that the equipment and facilities of the lines l must be definitely added to in the near future in order to provide a ser , vice that will at all satisy the public The fact that provision mas peen spec 1 ificaIly made in the law TOT govern
 mental loans to the roads in case o1 \ l necessity with the advice and assist 5 ance of the Federal Reserve System La fact which had been neglected f 1ntiI tAe past few days-tends strong | ly to confirm confidence Tn the ao1l l itv of the roads to secure proper sup f fport during the coming months II ? which they are regarded as dist1nctl!
 on trial. Many of them accordingly
 have very large possibilities Of ad g vance in values which loom up nor = and more distinctly as tune passes g instead of being Tnin1mlzed.
 t Market Prospects
 n The course of the market durin' :. the mast week has been less decisiv' e than for some time previous tac : explained by the very undecided ad : vance which many stocks have al : ready undergone. It has been clea s at all times, however, that mucl = greater advances would nave oeel f secured had it not been for the re t straining influence of high money y The extremely active speculation il n a few issues and the manipulativ e tactics which led in the case of on f nar4icular stock to action suspendin! d it from further trading for tl1e pres t ent is to be regretted as likely to in e terfere with the wholesome develop
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