Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-06-16
CHICAGO TICKET
WAS DISCOUNTED
curbing Of Credits Beginning to
Have Effect on General
Business

stocks on Monday last was not so much
the result Of disappointment at the
outcome Of the Chicago convention as
il was due to profit taking. Many peo-
ple, it was said had purchased stocks
last week, before the rise. on the as
sumption that conservative opinion
would rule the convention rather than
radical.
These ncople concluded that the selec :
tion Of the candidates had discounted
any subsequent news and made haste
to turn their rapcr profits into some
thing more substantial. To the on
locker. this action. coupled with attacks
nv the bear element, created an i'm
preston that the market was weak,
which was not So
banker remarked that. notwith-
standing tho efforts to correct defects In
our economic condition. progress seems
slow. The curbing of credits has not
arrived at the stage where everything
IL comfortable and matters can be al
lowed to drift and perhaps right them
selves as they have done before. So
long as money conditions are as they
are now. he said. the powers that be
will continue to exercise strong curo
on any attempt at runaway market.
Uiph money rates, he remarked. are
! likeIv m continue for some time, at
least so long as the government Ge-
cides 70 noy rates such as II is paying
on the last issues Of certificates oil
indebtedness.
Arother banker said that while on the
surface it is not strongly in evidence.
vet those in touch with conditions know
! there has been a slump in general ouSl-
ness all over the country, ana theS are
looking for a still heavier oner LOOK az
tbe store windows. he said. Every one
Of them is frantically calling attention
| to tho heavy reductions which they are
| making. and when one goes inside TO
| insnect. instead of the crowds OF the
| first two or three weeks after the hrst
announcement of sweeping reductions,
one finds few prospective customers.
I And why? he added-simply because
tbey cannot avoid comparing these re-
! duced prices with the before thew
! prices. which they all can remember so
/ we'll. and they find the reduced prices
! still too high in comparison.
He said he didn't wish to be p'ssimis-
/ tic. but the freight congestion on rali-
roads and at ports is getting on one
/
still further hammer business arc getting
ont of all bounds. No sooner is way
found TO Circumvcnt a strike than strlk .
crs attack from a new angle. and the
whole affair has to be threShed out
over again. He then spoke of the com
plaints he had heard from manufactnr-
ers about the incffiCiCncy of labor. Ihey
are looking for a big immigration TINS
ycar TO correct that. he said. and the
government authorities are preparing
for a big influx of foreign labor; but,
he remarked. that he did not feel very
optimistic on that score.
The rumor which freely circulated in
the financial district on Monday. that
the Northern Pacitic's directors would
cut its dividend rate of per cent per
hnnum TO stockholders was positively
denied by some houses in a position to
know. 1t seems that this dividend in
question is payable in November to
stockholders of record in August
4 broker said that while the dircc-
tors may not take any action at their
meeting tomorrow great many things
can happen to change their minds before
August when whatever dividend will be
made must be declared. Among other
things. he said. that can happen. we are
likely to have some far reaching de-
cisionS from the Interstate Commerce
Commission in the matter of raise in
rates.
1t is one of the most encouraging
signs of a new order of things. said a
banker. when the train dispatchers' as
sociation. now holding a convention in
New York. haS stated that a plan Is
/ t-J ID n
congestion Of traffic at railroad termi-
mails throughout the country. The plan
is to be turned over when completed
to the Association of Railroad EXeru
tives. and presumably by them to the
Interstate Commerce Commission. as
these two bodies seem to be working
in harmony.
There is no reason why labor assoCia =
tionS and associations representing
capital. he remarked, should not get
together in this way on all disputed
questions affecting the public welfare. or
for that matter on all questions of diff
ference of Oninion. What each side
should keep in mind when they enter
such conferences. he said. is that the
spirit of sacrifice accomplishes results
which the sririt of grab 1t all" will
never accomplish. And. he added. We
have had too much of the latter recently
Tho payment of the second inStalmen'
Of 1919 income and excess profits taxes
yesterday will in all probability usher
in a brief period of cheap money, ac'
cOrding to some fiuanciers. The estl'
mated yield from both these sources toI
June is $40 600 600. In March last
the amount realized from the sam'
sources was 500 900 900
! The amount turned in will at once
find it's way back to the various re-
positories and will perColate dowr
, through thc channels OF trade and com
lncrce in a very brief period. An invest
mcnt banker said, if it should result II
cheap money, as he expected it would
the situation could not last long, a!
there are very heavy disbursements o
dividends. interest payments and ma
turtles due on July l which must b'
provided for.
Then. he added, against the larg
amounts in taxes collected yesterday thu
Treasury pays out interest on the frs
Liberty Loan bonds and Victory notes
There are also heavy payments to b
made on certain issues of certificates o
Indebtedness.