Evening star., 1920-01-11
STAND Of RESERVE
BOARD IS APPROVED
Market Influenced by Gov
ernor's Discouraging "Un-
essential Loans"

NEW YORK, January 10 (by the AS
soeiated Press) The paramount in
fluence of the week in the stock market
was the formal address of the COVER
nor of the federal reserve bank to the
bankers at Washington discouragin
"unessential loans"
At first blush Wall street accepted
this as plain intimation that the CEN
trail bank purported erecting additional
barriers against trading in securities.
Supplementary statements however. in
dlcated that the warning was equally
applicable to excessive operations in all
classes of commodities
Conservative financial interests have
long discussed the urgent need of cur
failing speculation in foodstuffs. cotton
and other leading products as one direct
method of reducing commodity costs
To that extent the more rigid attitude
of the reserve board met with general
approval.
Week Irregular.
The weeks trading on the stock ex-
change may be summarized in the brief
statement that dealings were irregular,
when not absolutely heavy and in great
ly reduced volume. The only noteworthy
changes occurred in shares under direct
patronage of professional interests.
manifested by foreign exchange es-
peclally the London rate. Various
international loans are known to be
in course of negotiation, but such
undertakings are expected to assume
the form of commercial credits.
Investment conditions gave no sign
of awakening from their long sus-
tanned torpor, but there is growing
belief that first indications of an
agreement by Congress on railroad
legislation will be accompanied by
a broad inquiry for transportation
securities.
The industrial situation was re-
rorted as decidedly encouraging. in
marked contrast to the correspond
ing period of last year. In the opin-
ion of economists, the chief draw ba ok
lies in the continued high level of
prices. these in almost every instance
exceeding maximum quotations OF
1919.
Speculative Shares Interest.
The week ended very much in the
fashion that it began, interest con-
tinuing to concentrate in the more
speculative shares.
Early gains of one to nearly four
points were registered by steels
equipments, motors and some of the
oils. Shippings, metals and promi-
nent specialties, including American
Woolen, helped the movement along
at similar gains, with few of the
low-priced rails.
All advances were forfeited in the
final dealings, however. the whole lis;
reacting sharply under lead of the
oils. The tone at the close was very
irregular, declines far exceeding ad-
vances. Sales amounted to $4,000
shares.
Revolution RumOrs a Prctext.
No explanation accompanied the re-
verSal. but. rumorS of a revolution ir
Germany. with its possible effects or
the Versailles treaty, gave the shorts
a preteXt for renewing their recent
aggressions.
An unusually large increase of un.
filled orders was reported by the
United States Steel Corporation TO,
December. These orders at the END
of 1919 amounted to S.265.336 tons, OIL
last.
The clearing house statement fol
the first full week of the new yeaI
was noteworthy for a decrease OF
slightly more than s57,000,000 in ac-
tual reserves resulting in another deficit
Of s2.912.6s0.
Liberty bonds were heavy, foreign
issues irregular and most domestic
rails and induStrialS featureless. To-
tai sales tpar valuel aggregated 81
200, 200.
Old U. s. bonds were unchanged or
call during the week.