Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-12-20
BANKERS FAVOR STOCK
BUYING At PRICES NOW
is First Time They Have Recon-.
mcndcd This I'm More Than
Year and Half
WANT PERMANENT FINANCING
Pruning Of Dividends VIII BE Fol
lowed by Much Adverse Criticism
on Part of Security Holders.
Loans Being Contracted.
BY nI,oAnAN NALL

NE" YORK. Dec. I9.---For the FIRST
Tine In mcfc than year and "A half
important local bankers believe that
STOCKS are Il purchase 1T current
prices. They believe that the new
low records which have been made in
worst and that from now on the
security.market should begin TO dis
count the Improvement In business
ana me financial position Of the in
uustrlai companies which they cN-
poet tc occur after the first OF the
new year.
They are bullish for the reason tina.
Liquidation OF securities and the re-
adjustm"nt OF Industrial finances has
prosresscu to point from which Il
d dp1rn i"r ne better Is confidently pre-
must proceed and the Industrial com
panics VIII have to continue apprc-
priatinK earnings for the elimination
OF bank loans. but they consider that
the worst ~ over Some Industrial
companies viii have to reduce or
omit disbursements to shareholders
mcnt programs. Those that take
prompt action In this direction arr
rNprcteh 20 pc The nrs, in position to
renew distributions TO their share
Criticism Follows Pruning
INC pruning of dividends will be
loilo"ed by much adverse criticism
on the part OF security holders, ,n,
The bankers feel confident that ~
the middle Of next year they and tho
arrangements Of tho corporations vii,
DeSin 10 be commended for the ac-
ton being taken at this time
big business Ia looking ahead 10 a
revival OF activity In Industry In gen
s e6ni inc mnnaGements o. those
companies which are taking "A broad
view OF the situation and SEQ Inn
provcm"nt ahead are now making.
nrepa!ntions in order 10 be In posi-
ZION 70 take advantage of the op-
hor;unitics which are expected 10
aarisc The recent financing OF tho
n'andard on Companies Is accepted
preparations for bigger business. (
total cf $4,000. 900 OF standard oil
Donds were absorbed the last week
In record time. Proceeds arc To- bo
used FOR increasing reiineries and cS.
pandinE marine equipment This pro.
,, OF expansion furnishes addi-
,.3ShaI evidence OF the confidence
with regard TO the future OH com.
panics are expected TO be at the front
IN 'he next business expansion. The
prices OF their products have held
STEADY while other commodities have
experienced severe declines. OH men
'c,! con'ihnnt that the next boom in
Industry VIII result in tho consurnp-
ion Of OF! rs fuel on n larger seal.
Than ever before In history. STOCKS
or the seasoned Gil coInpa mics which
hnVe gone through other periods 81
depression are expected 10 reflect the
bettcrm"nt.
Prominent bankers arc having "a
hard time convincing tho manage
inchts or industrial companies Of the
necessary OF curtailing expenditures
and paying or bank loans The
arrangements Of the corporations are
inclined 70 hdopt makeshifts with n
VIC" 10 tiding over their require
inchts until business improves This
The bankers are unwilling To do, in
aamuch AZ IL might neccssitatc a
reconsideration OF finances in later
months
Want Permanent Financing.
The bankers are urging that finnn.
cial plans OF corporations be OF n
permanent nature. There Is a gen.
oral belief that tho large banks arc
loaned un as far as they can 20. but
a pcrushl OF the confidential state
fncnts OF some OF the institutions
shows that their borrowings from
HE Federal reserve bank are in many
Instances about half what they were
"a year ago and show steady CON
traction: One banker declares that
The vaults Of his institution contain
AZ much paper eligible for redigcoun,
as IL now pledged with the Federal
reserve bank. This furnishes an
idea Of the room existing FOR tho
tries. which the bankers consider
are in position 20 expand with safety.
Two important pieces or new
hnarcing are expected To be an
nounced carly next week. They Will
involve total OF more than $50
ooO.0U One piece OF financing will
result IN the elimination OF a stu
alton which has been source OF
much DISCUSSION and will result in