Evening star., 1920-02-01
FOREIGN EXCHANGE
CRASH|SFEATURE
0vershadoWs Developments
of Uncertain Week in
Financial Markets.

NEW YORK, January 31.-All other
| developments of hesitant and
! otherwise uncertain week in the
! financial markets were overCh adow-
! ed by the more serious crash in for
| eign exchange. Movements of in
, ternational credits against England,
France. Italy and other countries of
! the old world were without prcce-
| dent and excited grave concert among
! banking interests here and abroad.
| Those who recalled that December
| exports fell away by almost 500
| 100000, as compared with November,
predicted that this latest reversal
in exchange is likely to have even
! a more unfavorable effect on the
| country's trade balance for the
| month ending today.
| Domestic money conditions also de-
| noted further distur bance, in conse-
quence of the policy of credit cur
| tailments adopted by the Federal Re
serve Board. Time funds failed to
| relax. even in slight degree, and call
| loans ruled ut IL per cent. with q
| maximum rate of 20 per cent.
! Quoted Values suffer Little.
| Quoted values on the stock ex-
| change suffered relatively little
| shrinkage. however, and in several
! cases final prices were well over those
| of the previous week. THIS was eSpe-
| cially true of steels and equipments.
vorable statements issued by the
| United States and Bethlehem Steel
| Corporations. Bethlehem, according
| to the annual report. is working vir-
| tually at full capacity and has almost
! sufficient business in hand to keep its
plants at highest pressure for the rest
| of the year. Further wage increases
| by leading steel mills are regarded in
many quarters as foreshadowing an
| upward revision of price schedules,
| but several of the leading producers
deny such action is contemplated.
That some of the other important in
| dustries are not keeping; pace with
| the steel trade. however, is seen in the
| recent statements of leather and tex
| tile companies and another reversal in
| the copper metal market.
| Yesterdays Market.
| Industrial stocks of the more rep
! resentative classes gave promise OF
| extending recent gains at the outset
| of today'S brief session. steelS and
| equipments again pointing the way
| with perceptible improvements il
| rails and shippings.
Trading had not progressed very
| far, however. when pressure, evident
| ly of professional character, mani
| tested itself in the motor issues. sooI
| spreading to the general list. Gen
| eral Motors made an extreme reverSa
| of 10 points. ending with a net loss OF
| "a, and CruclDle steers initial mod
crate gain was replaced by IA decline
| of slightly more than 5 points.
| Baldwin Locomotive. leader of re.
| cent markets. also forfeited it's fur
ther advance. and Republic Iron seemed
to be the objective of a lively shor
! interest. United States Steel lost only
| a fraction, but oils and the numerous
| Specialties that follow the course Of
| motors closed mostly at moderate re.
| cessions. Sales amounted to $4,000
| shares.
Loan Decrease Noted.
| The most significant feature of the
| clearing house statement was anothe,
decrease-s2s.3 324. OOo-in actual loans
and discounts. making a total con.
traction of about s127,0O0, 600 in the
| first month of the new year.
| Actual reserves made up only a
! small part of last weeks decrease
but left the total excess al about s23,-
| 100000. as against the recent deficit
of almost S3,000,00o
Following it's course of the proceed
| ing days of the week, the bond mar
! ket lost additional ground, liberty
and foreign issues displaying further
heaviness. Total sales (par yalue)
| aggregated $3.50, 900. Old United
| States bonds were unchanged on cali
| during the week.