Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-06-20
by I, A, FLEMING.


While the signs of the times are
said to be showing some Improvement
1t is still evident from many circum-
stances that credit continues tight;
! that the conservation of resources is
| still going on; that interest rates
have not shown any perceptible fall
| ing off, that expansion is still to be
discouraged, and that money will not
be more plentiful until after July /.
possibly not until after the crop move
| ment of 1920 has been completed.
1t is encouraging that the New York
stock market moves in the narroWest
of lines. and bankers hope that there
will be no enlargement of specula-
ton in the near future; it is encour-
aging that the June Is payments have
been accomplished with relative ease
/ and that the banks have met the
action of the government in bidding
for money at the very rates that
banks are making to preferred Gus
toners over the counter without los
ing more deposits than they have;
but the losses have been severe and
1t is to be hoped that the governme mt
will test the market for Treasury
certificates at a lower rate when it
next enters the field as a borrower.
Draws Cash From Banks.
The last loan was successful, but it
tempts investment on the part of the
public and causes the withdrawal of
funds from the banks for that prr-
pose when such rate is made for
certificates. Fortunately. the demands
OF the stock market for loans were
restricted and permitted the with
drawal of call loans without more
than passing effect on the value of
securities.
1t is encouraging to find that liberty
bonds have apparently reached the
bottom of the long grind to lower
levcls-to a point where investors
realize their value and where they
are being taken in blocks by the
ultra-conservative type of investor.
with the encouragement in the fact
that they will not be an unfavora BILE
factor in market conditions hereafter.
Crop reports give hope that the
agricultural yield will be reasonably
satisfactory; the chances of repub-
lican success this fall are said to be
favorable and there is certainly some
encouragement in the belief that
heavy gold shipments from London
soon will start this way.
An UnfavOFable Feature.
1t is not satisfactory feature of
conditions that the adjustment of
wages apparently continues in the
direction of higher pay and shorter
hours, but there is consolation in the
fact that the public sympathy now is
on the side of the producer and
against the use in any event of the
strike. Strikes having the antagonism
OF the public have never made much
Roadway.
1t is regrettable that the only liquida-
ton of labor to date has been in the
curtailing OF production in certain
sections of industry. notably in
WOODEN, where unanimity Of withholding
OF orders brought the only noticeable
reduction in the high cost of living.
Said the head of one of the large
local trust companies the other day:
I'VE have passed through some
strenuous times during the past week,
with very heavy drafts made for the sec
ond installment of the income tax pay
ments: we have lost considerable in
deposits by reason of the high rate
of interest the. government is paying
on its recent financing. and, coming on
top Of taxes in May. our deposits have
been largely reduced. But we have
not disturbed single loan in the
District OF Columbia and that's some-
thing.
The Secondary Reserve.
as referred to at recent public
gathering on call on Wall street, and
we drew it down day by day as we
needed the money-and it was for
tunate for the District of Columbia
borrowers that this was the case.
NO" in answer to a question, I'VE
have not made a loan above per
cent, and we do not believe that our
banks have taken advantage Of the
opportunity offered, save in exception
al cases. We have turned down re-
quests for loans, and have had would
be borrowers come back with an
offer of per cent in an urge for ac-
commodation., Needless to say the loan
was not made.
II see but little. if any. let-up in
the demand for money. and but small
curtails on obligations. The people
on conserving resources If we are
to have money for the needs of bust
ness and the government during the
remainder of the year.
There isn't much encouragement in
| this interview, save in the mainte-
nance of the 6 per cent rate here
and they are straining it at that; but
there is encouragement in the fact
that bankers are watching and aiding
| essentials. Nor is there any great en-
travel. now on in apparent earnest,
save for the nations Of Europe.
Small Chance for Speculation.
In view of the slow improvement
admittedly slow. and the urge Of con-
servatiSm in the air, there is small
chance for profits in scalping opera
tions In the stock market, just as
there appears to be but small chance
! for losses. 1t is likely to be a long,
slow, more or less steady pull. with
| the undertone gaining strength, after
July l, and with betterment after the
Fourth holidays.
| Specialties will develop here and
| there. pools will work their way, but
as the nominations are disposed Of
and the signs grow more encouraging
! for one or the other Of the grea,
political parties, the influence thereof
will be more dominant-an advance
| il republican sentiment prevails and
| the reverse if the reverse prevails.
| The fact that the so-called bonus
! bill has been shelved until after cleo
| tion promises well for it's disappear r
| ance as a factor in considering the
stock markets possibilities.