New-York tribune., 1920-09-27

are seeking leans for fixed periods
running only to che end Of the year.
Beyond that they do not care to make
commitments.
The investor Jared better than the
speculator for the most part during the
last week. The outstanding develop
ment Of the period was not the check
in the recovery Of stocks, but rather
the widening Of interest in bonds. Pur-
chasers appeared in the market In quest
Of bonds varying from the safest to
those most fraught with elements Of
risk. The list of investment securities
traded in last week was by far the larg-
est of the year.
Liberty bonds were the conspicuous
leaders in the movement Of fixed ma
turity obligations to higher quotations.
On the average, the government issues
gained moro than per cent in market
value during the week. AS q result,
more than half Of the losses incurred
in the spring decline have now been
eYaced. Despite the striking expansion
Of activity in these securities, dealers
assert that trading would be on q still
more extensive scale, if the floating
supply were not so limited.
According to The Tribune averages
for twenty-five bonds, the weeks gain
carried them from 1888 to 77.40. Rail
bonds climbed from 741S to 74.67; IN
dustrials from 1888 to 1888, and public
utilities from 69.15 to $3.50.
Dealers in sterling exchange contend
that the market ought to become much
more stable once it becomes definitely
known that the French government has
completed selling sterling in connection
with taking care Of its half Of the
Anglo French maturity next month.
Sterling has not been nearly 80 erratic
during the last week, even though 1t
has not shown any pronounced recuper-
ative powers. Pressure against the
Scandinavian exchanges has been one
Of the outstanding features.
Professor Casel's plea, which ap-
pears In another column, for the sur
vival Of the 50 cent dollar seems
slightly archaic, in view Of the known
policy Of American banks, under the
direction of the Federal Reserve Board,
to squeeze some Of the water Of in
flation out Of the nations credit and
currency. The Stockholm scholar sees
the problem solely from the European
viewpoint, and that is why his views
deserve attention. He envisages the
attempt Of the more solvent European
countries to rescue their exchanges
from the sloughs Of depreciation, and,
recognizing that the dollar Is the most
reliable international yardstick at the
moment, he argues that it will handi
cap other countries IL the unit of
measurement-the dollar-is itself
changed. Whatever merit there is in
this contention Of the Scandavian
economist seems to be outweighed by
the fact that 1t will be best for the
whole world for America to build its
granite, instead Of on the shifting
sands of imitation. Moreover, the pro-
fessor's suggestion that it would be
wise "to prevent gold from rising again
in value" entails freezing existing un-
satisfactory ratios between gold and
goods produced into permanent world
conditions. 1t seems to be merely an
other way of expressing the hope that
the tides Of economic consequences
can be effectually stopped by the fats
Of governments.
Despite the elements Of uncertainty
in the industrial outlook, there is
bright side to the picture. In its
monthly business review. the Syracuse
Trust Company emphasizes the cheer
full aspect. "Betterment Of railroad
traffic conditions" it says, "is by no
means the only favorable development
Of the past month. OF equal or great
er Importance is the fact that there
has been g good deal less labor unrest
and good deal more efficiency on the
part Of the workers. This was only
to be expected in the circumstances.
1t invariably happens that when the
competition for Jobs Is keener than the
competition for men, efficiency in
creases because no one 10 sure Of hold
ing his job and every one works harder
to keep on the pay roll.
"Whatever the cause, the fact that
the output per man per hour is gain
ing promises to afford a real solution
for the high cost of living problem.
Labor, in its efforts to get higher
wages for less work, had overlooked
the fact that it cannot consume what it
does not produce, and if, as seems to
be the case, it is now in mood to work
hard for its money, there should be
substantial increase in production
and sharp fall in unit labor costs"
Equipment Bonds
{Guoted on income percantaoa h,.,>