Imperial Valley press., 1920-08-26
MONEY MARKETS
CREDIT SITUAT

The gradual improvement of trans !
nortation which has been effected dur
ing recent weeks has permitted some
what more rapid movement of grain
than had been anticipated. Conse
quently the holdoYer from the pre-
ceding year has in good measure been
cared for ard the new crop-movlng.
season mas beguAon schedule and un-
der more Favorable conditions than
seemed possible month ago. 1t is re-
middle west that bank loans to finance
the actual harvesting Of the new crops
are being reduced at an earlier date
than is Usually the case. While the
credit requirements of the new move
ment will not reach maximum volume
for some time to come. and while
easier credit cannot be expected until
the peak of the movement has passed,
the situation has improved sufficiently
to make reasonably clear that the
autumn agricultural demands for
credit will not be in excess of the abll-
ty of the banks to supply.
There are indications also that
many commercial borrowers, in re-
Spouse to expectations of credit
stringency during the fall which have
prevailed for many months, have at
least to some extent anticipated then
autumn requirements for credit. Ihis
factor, coupled with the continued
tendency toward reduced volume of
business and lower prices for many
commodities, NAV be expected to re-
lieve the pressure of commercial and
industrial credit requirements. 1t
must be recognized, however, that
some little time will be necessary for
this relief to make itself manifest, be-
cause of the interval which must
clapse before new policy in business
brings results. 8,
Money Rates.
Rates in the New, York money mar
ket have ruled steady throughout the
period of july 16-August 10. Com
mercial borrowings in the open market
have continued at firm level of 8 per
cent. Call money rates, which ruied
at per cent at the beginning Of the
period. gradually declined to about 3
per cent at it's close. This decline has
reflected, not a surplus of funds avail
able for stock exchange employment,
but the reduced volume Of require
ments resulting from continued stock
liquidation.
Securities
The bond market has experienced
real measure of improvement during
the period under review. The absorp-.
ton by investment of corporate and
particularly Of railroad securities has
been good and has extended to bonds
of the second and third grade. The
general trend Of prices. moreover, has
been moderately upward.
! This Improvement in tone IS re-
! Election Of the more definite and I'M
! proved position Of the railroads which
will result from the settlement of the
railroad wage question and the al
lowance Of substantially Increased
freight and passenger rates by the In
terstate Commerce Commission. 1t re-
fleets, also, feeling that the read
iustment of business and prices to "A
mere normal level is proceeding salts
Ifactorily and that this process VIII ul-
timately release to the investment
market more adequate supply OF
credit. While these factors, have oc..
/ casioned moderate upward trend OF
/ bond prices, the tremendous volume OF
new financing which awaits favor
I able market constitutes retardlng
I element which may occasion repeated
/ fluctuations in the trend. 1t must be
expected that at each new lever OF
prices, outstanding bond issued VIII
rect with the competition OF new
! flOtatOns.
General Conditions.
Although specifically not much
change is evident in the general DUST
,ess situation from that Of July 70,
lnevertheless underlying intrinsic coil-
ditions arc slowly and steadily max