Evening star., 1920-05-28
T|MEMONEY BRINGS
MORE CONFIDENCE
BY STUART p. WEST.

| NEW YORK. May 2S.-A further
very considerable increase in the vol
| ume of time money Offering to bor-
rowers and continued bouyancy in all
investment securities were the two
! The time money supply came from
both local sources and from out OF
town. That the interior should be
anxious to lend in New York certainly
| is not suggestive Of any shortage as
( the period of the crop moving draw
nearer. Rather it is accepted as eNi-
dence that credit dehation through
out the inland markets has already
| made considerable progress.
At the start of the week the banks
had been holding off for 9 per cent on
loans carrying from thirty to sixty
days. At the middle of the week they
We're more disposed 10 meet the bid
of Si2 per cent which borrowers were
tentatively putting in. At the close
of the week we find them virtually
pressing their offers in considerable
volume at the s u per cent level and
we find the supply of thirty-d day
money at this level quite outstrip-
ping the demand
For the first time in year the
money marke: is coming under the
direction of borrowers rather than
tenders.
The latter are no longer able to ex-
tort fancy premiums for the use OF
rare amounts of time funds
On the contrary they are doing their
best to place all they can on two
month loans at Si2 per cent. and are
discovering that even this concession
, is not sufficient in view of the CON
fident feeling that it will be perfectly
feasible to depend upon the call
money market all summer
Bonds were higher again. so We're
railway and industrial preferred
stocks. and 50 also We're most of the
old-line dividend paying investment
rails. In all these directions the in
veStment buying movement which de-
veloped at the first signs that the
credit strain had reached its peak and
has since been stimulated by the
ket, showed a disposition to quietly
absorb anything that was offered at
current prices and to slowly go up
with it's bids.
Market Wnx Dull.
The stock market was very dun. a.
was natural in view of the fact that
many of the active traders We're ar
ranging to be out of town from to-
night until Tuesday morning. There
was the usual reluctance under these
circumstances to engage in new Ven
lures. On the other hand. those who
had expected the market to sell oft
because Of the preparatory clearing
up liquidation of those intending to
be ava. We're disappointed. What
little selling of this sort did appear
was unimportant and had no effect
upon the movement of prices. This af-
forded rather strong testimony to the
Ia ct that the recent buying has come
from much more substa ntiaI sources
than the professional traders operat- :
ing for quick turns.
Equipments Favored.
The favorite in the market all da y
were the equipments. the dividend
paying rails. a few Of the high priced
oil stocks and the tobaccos. United
Retail Stores and Tobacco products
were both very aggressively bought
on knowledge of important plans for
expansion of the tobacco business
1t looked as il railway shares like
Atchison. Union Pacific. Southern
Pacific. Great Northern Preferred and
Northern Pacific were being steadily
taken as they We're offered around
current prices.
Sterling exchange lost part of the
advance which it had on the an
nouncement of the gold arrivals