Omaha daily bee., 1920-03-08

bills back when they saw the trend
of the market last Tuesday and
Wednesday were willing to offer
them at the higher prices of Satur-
day and this process may continue
for a time, but the factors which
bring an ebb and flow of quotations.
are not of the sort to submerge the
larger aspects of the foreign .x-
change market in recent days. That
the financial community has grown
more cheerful since the middle of
February than before over the fnan-
cial and industrial outlook for Eu-
rope is evident in the comment OF
bankers. Because this is so, it is
difficult to refer to tangible develop
ments affecting the exchanges as
the dominant ones in the market for
sentiment has way of exerting 4
wider influence at times than con-
crete economic terms. Germany
has not yet been aided by an inter
national loan, arranged by the allied
leaders, but the very fact that such
step is under discussion by the
supreme council at London has
created the impression that this for
mer enemy country will be. enabled
to restore her industries. and trade
with assistance from abroad.
Gold Talk Stimulating.
: The report that Great Britain and
France would undertake the ship
ment to the United States Of $780,
100000 gold has been toned down by
banking comment from London, yet
there was no doubt last week but
that the thought of gold imports,
whether in. large or small amounts,
was stimulating to the sterling mar
ket. What appears to have caused
the exchanges to advance was a
mixture of favorable sentiment with
several tangible events. Among the
latter was the program being shaped
by the British treasury for meeting
the S500000,000 Anglo-French loan
maturity next October. Presumably
some gold will be sent for this pur-
pose, which was the basis for the
story Of vast movement in con-
temptation. Whether the metal will
begin to come in moderate amounts
in the near future or not until
toward autumn is problematical.
The strength of the Anglo-French
bonds in the last few weeks, the adj
vance being from around "a to 90.
suggests that the treasury is utilizing
balances here for the accumulation
of the securities below par. In this
connection, it seems probable that
the British and FreRch and quite
likely the Belgian and Italian gov
ernments have built up larger
balances than are generally known
through the current offerings of their
new loans in this country through
banking channels.
Issues Widely Advertised.
The issues have been widely adj
vertised. the high return and
speculative possibilities through ex-
change movements have been i'm
pressed upon the investing public.
Also it is known that many millions
of dollars worth OF German munich
pal issues have been placed in the
United States this year. These
various transactions have oppor-
tunity for influence upon the ex-
changes in proportion to the decline
Of exports from this side to the
countries affected and to the increase
OF imports from them by the United
States.
Stocks last week profted some
what by the stimulus which came
from the rise of the foreign ex-
changes. Speculative conditions,
however, were still under the damp
ening influence of inadequate credit
facilities for market purposes. While
call money moved down from 10 to
6 per cent before the end OF the
week, there was no discernible ease
nlent Of time money rates and none
was looked for previous to the due
date for initial income tax payments.
The position Of many industrial
stocks seems strong as far as earn
ings prospects are concerned and
railroad issues stand to profit BY a
constructive application Of the rail-
road law, yet it is automatic that a
broad bull market cannot be sus-
tanned without plenty of credit, pref
erably at low cost. Suggestions of
concerted action by the European
countries and the United States TO
aid the industries of stricken coun-
tries is stimulating to sentiment over
the longer future OF business and
trade, but not particularly encourag-
ing to tho immediate market for Sc
curities. United action means new
demands upon credit and threatens
to put further limits upon the
amount available for speculation.