, 1920-07-15
CREDIT SITUATION SECOND HALF
OF YEAR is STILL UNDER
STRAIN.
CAR SUPPLY BIG FACTOR
BANKERS WORKING TO PREVENT
CRISIS IN AUTUMN; BUY
ERS WARY.
western Newspaper Union News ssrylee.

"eStcfh newspaper Union news service.
New York, July 1.-THE turn into
the second half of the year has been
accomplished by some cheering events
for business and finance, although
many difficulties, long present, have
moi been lessened. The general credit
situation remains in a state of strain,
and it is certain that throughout the
summer bankers will act with u single
eye to the prevention of a really acute
position in the autumn.
The very fact that the loan market
of all varieties of accommodation will
be guided con~serva,ively speaks for
the avoidance of some tension in the
crop moving period, and the hope is
expressed in banking quarters that the
taking of time by the forelock may
avoid SO extreme a burden upon credit
as was feared a month ago..
knowledge that the underlying stu
alton of credit had not been altered
at all by the satisfactory completion of
the midyear settlement seemed last
week to warn the speculative follow
ing of stocks that surface conditions
should not be intrusted too far.
Sentiment favoring a relatively easy
money situation was not sufficiently
strong to lull the lurking idea that
there might be numerous occasions
during the summer when a quick r
up" of the call rate would be embar-
RAISING to persons carrying long lines
of stocks.
The business and industrial outlook
is decidedly mixed, considering the
major lines of production and distribu-
ton. Commodity prices, as a whole,
declined in June, as compared with the
May level, but the movement was high
ly irregular. Textiles, breadstuffs, live
stock, hides and leather declined, while
coal, coke, building materials and
chemicals, together with important
provisions which play a vital part in
the cost of living.
To a degree recessions of activity in
some directions are offset by a heavy
demand in others, which tends to con-
fuse the outlook. Thus, the evidence
supplied by closing textile mills tells
of a depression in this field far more
important tldh oSuSohdl oidIhCIihS
would bring about, while at the same
time the consumption of articles used
in construction work, steel, cement,
lumber, etc, is overtaxing the produc-
ers.
A survey of current conditions re-
quire allowance by reason of persist
ent railroad congestion. Pig iron pro-
duction in June was at a rate of 5000
tons per day in excess of the May out
put, which indicates active operations
of steel plants, but lack of adequate
transportation facilities is causing a
great amount of finished material, and
iron as well, to be piled in mill yards
until it can be moved.
Whether or not July reinvestment
funds, derived from interest and divi-
dend payments, is the main factor in
the market just now, the demand for
investments has been substantially
more active this month han last. The
Swiss government loan of S25,000,0O0
and the offering of S60,000,000 Armour
& Co. bonds last week were quickly
taken up, and the success of the under
takings foreshadows more in the near
future.
1t is expected that the requirements
under which railroads may obtain per-
mission from the Interstate Commerce
Commission to float loans will shortly
be clarified, for several of the leading
companies have new borrowings under
consideration.