Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-05-16
ny A. FLEMING.

ny i. A. FLEMING.
For four weeks the nation has
xuded conservatism. put the screws
On credit and forced liquidation of a
very long line Of high-priced stocks
on Wall street, worked nightly to
get and keep government obligations
out Of banks other than liberty and
victory issues as originally purchased
and recent issues Of Treasury certif-
Gates.
Economies have been practiced by
Individuals; communities have curbed
extravaganza and the business world
has opposed and preached against any
action that will increase the national
debt and place further strain on the
credit fabric. reported as stretched to
the straining point at this time.
For month every effort has been
made to correct the conditions COM
pace, followed by security markets
elsewhere, until 1t looks very much as
if the needed liquidation in specula-
tive and investment centers had been
accomplished. The dose has been Sc
we're to investors and drastic. but APP
parently it was needed. and its ac-
complishment precludes the necessity
of further crucial treatment, even
though some of the predicted trou-
bles develop more seriously than ex-
pected.
In working for the improved con-
lition of today the government has
been to the fore. Wise men on the
reserve board have placed the screws
on credit, though other men. some
of them the closest friends Of the
reserve act, have felt that there was
small need for forcing government
securities out OF reserve banks
through the use of higher rediscount
rates.
Government Need Ii Great.
Admittedly the governments need
10 great. Semi-annual interest on
various issues of liberty bonds has
lions are needed to settle the obll-
cations. A larger percentage of tax
payers are using the installment plan
of paying their income tax assess
ments. while the call for funds keeps
on undated and some sources OF
revenue in the olden days have dried
up.
Business constantly urges reduce
tion in excess profits taxes, but with
the government forced to pay 51s
for per cent as a probability OF
the near future. and Congress con-
sidering the so-called bonus PROPOSE
ton. it is evident that taxes will not
be reduced.
Readjustment Has Started.
Reimbursement has certainly started.
If only on Wall street. but there are
sufficient evidences that the peak Of
high prices have been reached and
that the economies of the public have
been evidenced by the disposition OF
merchants to reduce prices and of
others to justify themselves in keep
ing up values, more or less effective.
Further practice of economy will
be rewarded by further price recess
sions, but the liquidation Of labor and
~
are problems upon which small
progress has been made, but which
must be solved.
Business IL Active.
Business itself. save in certain lines
where labor and economies have
caused trouble. where transportation
evils have forced curtailment, con-
itself at high rates when necessary.
and per cent and even higher
money is the general rule and not
the exception.
February; March. April and May daily
clearings for the country at large
have been on an even keel. averaging
about 1.350.0O0. 900. although $4,000
900 less than in January. but every
month is far ahead of the correspond
ing month of 1919.
r. G. Dun & Co. note the trend down
IN textile prices and also the DISPOSE
ton OF holders to make clearances Of
goods through price contraction. Also
that the long expected readjustmen:
IN prices Is apparently making prog
ress IN other lines. More reports of
cancellations of orders are also taken
as a good sign, with lower prices
needed to stimulate trade"
shoe retailers are disposed to stop
anticipating future needs OF their
trade; silk. rubber and cotton goods
continue to favor buyers. These are
signs Of the times and are favorable
omene.
Washington Bankers' Convention.
Every encouragement is expressed
over the outlook and the outcome Of
lumbia Bankers Association to be
held on the s. s. Midland on Mon
day and Tuesday. June and s, the
steamer leaving on Sunday evening
of the 9Th proximo.
The symposium. the intensely prac-
teal side of the program, is in charge
OF r. V. Fleming. cashier of the Riggs
National Bank, and he has promised
to provide sufficient time to discuss
any innovations suggested and to
conduct this feature that the greatest
good may be expected.
Many bankers have decided to take
members of their families with them,
the social features of the last con-
vention. although impromptu. sug-
costing most enjoyable voyage
with at least three evenings to de-
vote to social intercourse and with
two full days on the water, free from
cares for the ladies Of the party.
Promises Success ut Dinner.
Eugene E. Thompson. president Of
the local stock exchange and chair
man OF the invitation committee for
the dinner to be given by the or
ganization to it's guests at the New
Willard. says that acceptances have
been received from a sufficient num-
Der of guests to insure large crowd
at the affair on Tuesday evening.
May rs.
Washington Securities.
Values on local securities indica, e
that there has been some liquidation
in our market during the current
year. With the exception of the very
severe drop in the prices of Columbia
Graphophone. common stock. espe-
cially In the last four weeks, none of
the declines OF the year to date have
made any serious impression on local
investors. In the case mentioned 1t
was the gradual approach of the
price for old stock and the selling
price for new stock that was perhaps
needed to lessen the selling pressure
soon as this financing has been com
pleted. Monday is the last day on
which rights may be exercised at
$3.50 a share. The decline following
the announcement OI tue new HHdEc-
ing was from 81 to 271a with slight
recovery. Many local investors have
| the stock at much higher prices and
have been at sea as to whether to
exercise their rights or not. Some
have. Probably more have purchased
than have sold, while assurances Of
the excellent business position Of the
corporation are not wanting.
Comment on Our Trade Balance.
Frank A. vanderlip. chairman of the