The Washington times., 1920-04-29

~ y OeArtn OF news OF al hihNss ~"
newspa pers, press associations ana
even private Companies interested In
JApsness ventures. receiving praeti-
oally no intelligence. Whether ths
situation has grown better or worse
In the last day or two IL not known
The Japanese panic and It's world
wide Importance wss brought very
closely home to America BY the iact
that the people who have been specu' !
lating on the New York stock eN-
saw what was happening 10
tina Japanese spectators and became
alarmed. With the hrst news OF the
Japanese uphesysl, the New YORK
exchange experienced a pronounced
hurry.
Stocks went down sharply. During
the past winter there have been TWO
or three speculators' nurTies In wall
Street, and lhey have borne distinc-
tive earmarks as such. For instance
the market would go down under a
selling wave following a high rate on
call money--as high as 30 per cent IN
some cases. The Epeculators sofa
right and left Usually the following
day the same or other groups OF spec,
ulators bought as feyerlEhly ana caIl
money rose with the demand. ii was
speculation on both sides.
But the recent wall Street furry
was unaocompanied by any increase
in call money rates. This Indicated
that no groups OF spectators or
others were bulling the market up
after the first break, by borrowing
call money and going in. Everybody
was selling. Everybody was unload
ing. There WAS a general understand
ing that prices were receding ana
- - ~. a
nently as a result.
Trend RemaIns Unchanged.
This trend has not changed. The
spectators are selling out their
stocks, taking what pronts they may.
Therefore, the problem i'm nediately
arises as to what they shall do with
their proceeds. No more solid security
now Is offered than the securities OF
the United states Treasury. There
developed, at the time the Hurry be.
gan, q remarkably stimulated demand
for Liberty bonds and Victory notes.
1t has continued.
The proceeds OF the speculative
stock sales are going into tho Gov
ernments. Proof OF this. II any is
needed, is that the Treasury and the
Federal Reserve banks are being
asked for Government bonds In In
cFeasing amounts and in varying de-
nominations. A feature OF the
brokers' business for the last few days
has been the large volume OF odd lot
Government bond buying.
This is the trend that has been
expected by Treasury officials for
some time. They would not be at
all surprised shortly 20 see a sudden
stiffening OF the market for Govern
ment bonds. II the demand keeps
up and the trend continues as At pres
ent. It is predicted that the Govern
ment bonds Of the war issues VIII
go to par in six or eight months
Such an operation would add mill ons
upon millions to the book value OF
the bonds in the hands OF people all
over the country, automatically.
Expect Market To Sag.
Further, it would take the specula.
tive element out OF the business OF
the country. There are many indi-
cations that this movement is afoot.
The recent overall fad has. of course.
but Il has been a straw pointing the
wind.
Buyers OF goods in all sections re-
port a complete reversal in the at
titude of the producers who have
goods to sell. Up until this spring,
the manufacturer would accept an
order in the spirit of man doing
O favor and would insist that the
price q be paid should be the market
prce at the time Of delivery.
Now, the manufacturers to a large
extent are sending out drummcrs to
obtain orders. and are insisting that
the price to be paid shall be the mar
ket price at the date of acceptance
- ,rIa aud the time of
delivery. This indicates that up to
this spring, a constantly rising mar
ket was anticipated, but that now ii
Is expected the market will sag.
Department store men and other
consumers say that every day they
receive letters from manufacturers.
wholesalers and jobbers promising
what has been unheard of in almost
all lines during the last two or three
years--that is, immed' ate delivery.
Buyers who placed orders for goods
last winter, being then told that they
could no expect delivery until next
fall, are receiving their entire or
ders now. All these things indicate
that the country in many lines is
getting produced up to normal.
During the war the factory and
plant facilities OF the nation were tre-
mendously expanded. Many persons
who had not been in the industries
before were brought in. With de-
mobilization of the army, herde Of
four million able-bodied young men,
the best sort of producers, were turn
ed back into the shops of the country.
Hours have been shortened and
efficiency generally decreased, but
labor saving devices have been i'm
proved, and there has really been n
large and sudden increase in produc-
tive capacity since 1917. Indications
are that rather Unexpectedly produc-
t!on has been brought up to normal
In many lines. AS there has been no
unemployment problem, this does not
seem extraordinary on analysis be-
cause all these workers and these
improved plants must have been do
ing something.
The big problem before the coun-
try now Is to receive this price re-
cession skillful'y and moderately and
so handle 1t that there shall be no