New-York tribune., 1920-08-30

AAVW VIC laAi Ill COIHHuuIVy prices Is
beginning to affect certain lines is we'll
illustrated in the case Of wool and cot
ton. Movements are on foot among
the Western wool growers and the
Southern cotton planters, 1t developed
last week, to withdraw some of the
present crop from the market and to
curtail production next year. In both
cases it is asserted that present prices
are below the cost Of production. Four
thousand cotton planters at meet
ing in South Carolina are said to have
adopted resolutions pledging them
selves to withdraw 25 per cent of the
new crop from sale and to curtail
planting by onc-third next year. Evil
dence is accommodating that there is no
marked shortage Of merchandise in
any lines.
France has at last brought to
focus its plans for meeting its obliga-
tions in connection with the Anglo
French loan of $5oo,oCo, 900, which
natures on October Is. In as much
as Great Britain's plans have been
completed, observers of the situation
are interested mainly in the steps by
which France will meet its share of the
largest foreign loan ever made by
American investors. Bankers close to
the French treasury give the impress
sion that France could create enough
1lor t0 80 II -
sorting to fresh borrowing in this
country. But with the frame worth
only Z cents, compared with 1913 nor
mally, the French are of the opinion
that it would be profitable to defer the
effacement Of part of its indebtedness
until future date, when the franc
will be worth more in the terms of
the dollar. This logic would be the
motive for any new loan which France
may raise in this country through the
negotiations Of Jean V. Parmentier. of
the French Finance Ministry, with ]. P.
Morgan Co. Bond mon are con-
hdent that a new operation will be
made next month, and are still in
clined to the view that France could
raise $100,0oo,000 at per cent net.
Taxation has driven many men of
great wealth from the ordinary invest
ment market, anC their places have
been filled by multitude Of investors
OF relatively s1n:.l means. The new
clientele of the investment bankers
has caused a slight change of methods,
but not very radical one. Offerings
OF new creations in the security world
are still made pretty much as in the
pre-war days. The selling campaiens
seem too abstract to appeal to the
imagination of the new investor. who
ls naturally inexpert in the subtleties
OF hnance. Interest in investments on
the part of the small buyer, it would
seem, could be heightened by explain
ing how particular new bond issue
contributes to the functioning of the
natlons economic machine For ex-
ample, company in the Far West re-
Gently sold equipment trust certjf-
Gates to buy new freight cars to helm
move fruit crops from the grower
toward the consumer. The need for
the new equipment was fairly obvious
IN view Of the we'll known state of the
nations railroad equipment, and vet
tne whole matter would have been
Drought more clearly within the grasn
OF the average man if the fact that tho
west was producing an unusua)1v
large fruit crop this year had been
stressed. A few remarks about such
oro'nary things as apples and oranges
olten mean more to the small in
vestor than elaborate statements ro
gardlng the financial structure ~ +bo
borrower If the small investor con-
''nues to play his present importan.
role IN the investment market -
seems inevitable that the wavs of
HnanCe must be fl1rthor ~.,.