Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-03-22
PEACE TREATY
DEFEAT IGNORED
Large Foreign Orders Reported
Being Placed for the
Red Metal

The rejection Of the peace treaty had
been discounted by majority in the
financial district for some time past and
the news created no surprise on Satur-
day last, nor had it any perceptible
effect on prices of stocks.
It is equally true that the German
situation is being ignored at present,
but a prominent banker remarked that
the conditions in Germany will soon
have their effect here. He said he
understood that the activity in copper
for the last few days was in anticipa-
tion of large orders from Europe, par
ticularly from Germany, and that ar
rangements had been made by some of
the large banks associated with the cop
per industry in America to finance such
purchases as might be made.
It Is not possible, with internal con
ditions in Germany as they are, he said.
that these negotiations will be carried
out at present. Of course, the copper
needs of France and other European
countries must be satisfied and these
are huge.
In some quarters it is expected that
the Supreme Court may hand down n
decision In the case of the coal roads
today, but If such belief had been gen
eral 1t was argued that the stocks most
interested would have shown some pre-
vious indication by an advance or de-
cline, according to the popular senti-
ment.
Those who spoke Of a possible de
cision were inclined to believe that in
line with recent notable decisions IL
would be favorable, but they hoped it
would not be proclaimed publicly till
every one would be certain il was cor.
rect.
The local representative of a large
financial concern said that the demand
for bonds still continues very weak.
There will be some attractive issues put
out this week, he said, and a large
number of new issues have been de-
cided upon. but are being held back for
the signs of heavier demand than ap-
pears at present.
or course, he said, the wonderful sue
cess attending the issue of the Texas
Co. bonds last week does not establish
anything, as it is only once in a great
while that bond of that class. with
such earnings and such unquestionable
and practically unlimited security back
of It, is offered to the public.
He said that every zone that sub
scribed to the syndicate is going to be
disappointed with the small percentage
of the allotment they will receive.
a banker said that the country banks
are not investing their surpuses in
bonds as formerly, and he believes they
are dealing more, in acceptances and
other good short time paper.
Below are opinions of leading finap-
ciers on recent events which have a
bearing on financial and economic con =
ditions.
William A. Law. president First
National Banlt-Production in some of
the agricultural states is seriously
threatened by the withdrawal of farm
hands to secure the larger wages offered
at centers of industrial activity. These
conditions are difficult to contend with
for farm production must be main e
/ tanned and the farmers, as a producing
class. are not able to compete effectively
for the inadequate labor supply now i'm
sight. Every labor saving implement
available for farm work will be utilized
to replace this decreased man power,
| but it is not at all clear how the short
age will be made good. These condi
ditions explain the antagonism between
the farmers and the labor unions, whose
exactions have resulted in a radical cur =
tailment of working hours. The United
States excels all nations in quantity
| production, but IL is not certain that
] this can be maintained if the working
day is to be further shortened as il
| has been since the world war began.
Corn Exchange National Bank, PhiIa
delphia- 1t is true that everything that
goes up must come down, but the great
| war established certain unprecedented
conditions which to some extent render
unreliable the old. hard and fast rule
l of action and reaction.
We recall even before the war influ =
ence made itself felt in our domestic
business that the release of great re
serves under the new federal banking
system had an unusual effect on the
bond market; that, whereas bonds un =
der normal conditions could be expected
to decline in pricc-instead they ad-
vanced for time because of the trc-
mendous increase in our money supply.
II can also BE- stated that the same
principle influenced business after the
armistice.
The factors which the old rule do not
take into account are many and varied
First, the world wide shortage of
goods.
Second, the necessity for repairing
the economic ravages of the war.
Third. the payment of the immense
war debts.
Fourth, lcssencd production.
These are fundamental factors. and
granting the stablizing influence in the
financial condition of the world. NAV
we not expect that new rule will have
to be used in fOrecasting business condi-
tions while these unprecedented factors
remain.
Guaranty Trust Co., Now York
Great Britain's rapidly increasing cx-
port trade is an indication of what the
premium on the American dollar has
done and is doing to stimulate the will
to work among the countries recently at
war. Had there been no visible limit
to dollar credits, Europe might have
continued buying with borrowed money,
and borrowing again to repay still older
debts. which. of course, would have
stimulated a false export demand in the
United States for few additional
months. But the fact that there is a
limit to available dollar credits, even il
not yet attained, has led in its turn to
the premium on dollar exchange, and
to the necessity of Europe's settling
down at once to the task of meeting her
own needs as far as possible at home.
Chandler RrOs & CO Tho ma rk Of