Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-10-04

hr. Hill mentioned ABOVE.
''The Burlington joint A per cent
bonds. falling due July j, 1921. the I
largest single railroad nearby maturity
Of record, being, one Of the important
reasons why this amnlgamation is very
likely. These bonds being guaranteed
by both the Great Northern and North
ern Pacific and their collateral, the
capital stock of the Chicago, Burling-
tor and Quincy Railrond, such COM
bination would form a substantial basis
for refunding, II necessary. the bonds
held by the public.
THE strength Of Northern Pacific
and Great Northern Is reflection Of
the belief that some such arrangement
must be made in order to properly care
for this enormous Obligation
Railroads Troubles Behind Them
Commenting on tho same subject, |
Paine. Weber & Co.. in special cir
cular letter on the railroad situation,
has this to say /
The serious operating and financial
difficulties which have beset the rail
roads in the last few years had raised
grave doubts as to their future outlook.
Such was the condition on February "a,
1920, when we sent you a circular on
the low priced rails. But it is most i'm
portant to realize that since then the
advance has been small compared to
the decline since 1910, which has been
persistent. It Is minor advance com
pared to prices ruling In 1916. The
year 1920 has seen railroad stocks sell
at record low levels.
I'm the last few months the trend has
definitely turned: there has been favor
able legislation, the roads have been
returned to their owners and large ad-
in frniuht md m taq
have been granted by the Interstate
Commerce Commission. While govern
mcnt supervision and control of the
railroads must be regarded as perma-
ncnt, almost all authorities agree that
the attitude of the commission has
broadened. 1t is highly significant that
users of transportation have accepted
the rate advances with very good grace.
This attitude Of the public arises from
dearly bought knowledge that efficient
transportation In an essential which
must be secured regardless of cost and
is the best reason for believing that the
government policy of starving the rail-
roads will no longer obtain.
'In addition to these factors, the
railroads are going into the fall months
with the country favored by record
breaking crops. The total agricultural
+ output Of the United States in 1920.
measured in physical units based on the
latest estimates of the United States
Department of Agriculture. exceeds that
Of all prior years. During the spring
and early summer, on account Of striking
switchmen. the railroads were unable to
move more \than a small part Of the
| freight offered to them. Deficient facili-
| ties at this time resulted in an accumu-
| lated demand for transportation. With
! these difficulties passed, the question Of
keeping an adequate supply of cars and
locomotives in service is one of the big
gcst problems at present. a record vol
umc of coal is now being produced. but
this does not serve to satisfy the de-
mand
Wall street shut up shop on Saturday
| in highly bullish state of mind. It was
in the air. and nothing but the real,
good side of the situation could be seen.
There was, of course, plenty of good
news, but some of the less promising
material was twisted around and made
Of rosy tint. The Federal Reserve Bank
sees early restoration to normal COM
petition as IL result of commodity price
revision now actively in progress.
| Various large corporations are en-
gagged in funding their floating Indebted
ness and all the symptoms of business
readjustment> so far propose an orderly
| DTOtTeSS WHltI SnOuu Dt ulStlutlN
| heartening. The latest financing project
was the sale of $40, 1000, 900 Swift Co.
Z per cent notes to Chicago banking
syndicate. which will make u public of ..
fering shortly. Judge Gary's return to
these shores on Monday is anticipated
with wide interest as to what he may
have to say with respect to steel prices.
Country's Foreign Trade
The foreign trade of the United
States in the calendar year 1920 will
approximate S14, 1000, 900, 900, against
Si1 900. 900 900 in 1919, $4,000 900. E
600 in 1913 and 1917. slightly less than
$S, 900 900 900 in 1916, little more
than 5000 ,000, 200 in 1915 and 81, =
277 600. 900 in 1913, the calendar year
Immediately preceding the war, these
figures being in very round terms.
The expectation, says the National
City Bank of New York, is discussing
this wonderful growth Of United States
foreign commerce down to the present
moment, that we should witness n fall
off in our foreign trade after the termi-
! nation of the war has not been realized.
Both imports and exports continue to
grow, and the total on both sides of the
ledger will be bigger in the calendar
year 1920 than in any year since the
| DpHlUulHS VI tHt war StNtlu u
as much as in any year prior to the
war.
The biggest imports in any calendar
year prior to the war We're a little less
than $4,000. 200. 900, and will total
SO. 900, ZOO, 900 in the calendar year
year 1920, while exports, which never
exceeded $500, 100000 prior to the
war, will be more than $4,000, 900 900
in 1920.
After War Adjustment
The Mechanics and Metal National
! Bank of New York, in its October
monthly review, furnishes an exceed
ingly interesting diagnosis of the general
! situation.
1t says in part:
The world is passing through a
! highly interesting chapter in afterwar
economic history. Prices lately have
been declining almost everywhere from
their recent levels, and the questions
now most frequently asked are: What
has caused the sudden fall in prices?
How far will it go? How long will it
continue?
'In some commodities. prices have
probably reached the lowest point they
will touch on the present movement, and
| in few instances in which the decline
has been drastic. there will doubtless
be recovery. But in considering the