New-York tribune., 1920-09-20

the marketplace, and the rise which
had started on Tuesday was resumed
with greater power than had been dis
played on any previous day during the
week. Toward the close Of the week
the market liberated itself from the
dullness which had prevailed and gained
breadth as we'll as strength.
In speculative quarters new recruits
the stock market has discounted the
full effect of the recession in industry
and the tightness Of credit. Acting
on this premise and definitely stinu-
lated by the overwhelming Republican
victory in Maine on Monday, operators
in quest Of higher prices for securities
carried on their operations. Monday
was the only day OF the week when
the trend was lower, and the sharp
turn, timed as it was, was evidently
due largely to the development in the
world of politics.
Discerning observers Of the endless
that the market has not yet completely
discounted the results Of the Presiden.
tial election. One of the moving in
fuenees in the weeks that lie ahead
will probably be national politics. Not
only in the lesser circles where wagers
are made, but In influential banking
quarters the opinion is expressed that
this Is Republican year and that
Senator Harding is more than likely
to be the next tenant in the White
House. OF course, If the verdict Of the
people were already in the ballot box
discounted. There Is just enough un-
certainty in the nationwide voting con-
test to bring it within the boundaries
Of speculation.
Domestic politics Is not the only kind
that has been stimulating traders In the
marketplaee. The change Of admins
tration in Mexico has also affected the
trend. The belief that General Obre-
CONS government will be moro friendly
toward foreign enterprises operating
within his country has played no lit
tie part in the rise of the oil and min
ing companies with properties south Of
the Rio Grande.
Oil stocks have been slowly winning
their way back to speculative favor.
For fortnight oils, which for a period
had been severely depressed, have been
steadily absorbed at advancing prices.
The bull argument is that the oil in
tustry is probably better off than any
of the other basic industries. The pc
troleum companies are now producing
at an exceptionally fast rate and are
marketing every barrel they can draw
from their wells as unprecedentedly
high prices. Operating and development
ment work costs have mounted, yet to
oil companies Of assured production
huge profits seem within reach. This, at
least, Is the way Wall Street envisages
the outlook In this particular industry.
w. P. G. Harding, governor Of the
Federal Reserve Board. In an address
before the Cleveland Chamber OF Com
merce, gave aid and comfort to those
who hold that the country is strug-
Cling safely through its credit read
justment- In summing up the chief of
the country's financial board Of strategy
declared: "The Federal Reserve sys-
tenn Is still confronted with conditions
more or less abnormal. but we have
passed through the period Of exhi1ara-
ton or intoxication which characterized
American business activities several
months ago, and notwithstanding the
gloomy predictions which were fire.
quently made at chat time the transi-
tion TO more normal basis is proceed
} ing quietly and without alarming fea-
lures" And again Mr. Harding ex-
planned, There has been since last
spring marked improvement in the
credit situation. This is due to the
better character and greater liquidity
Of bank credits rather than any actual
decrease in the volume Of credit"
New data on the actual credit situa-
tion will be collated to-day, when the
Federal Advisory Board meet at Wash
ington with the Federal Reserve Board.
4 At meeting Of these two groups in the
spring the campaign for discrimnat-
| ing IN commercial loans was formu-
lated. To-day the emphasis may be
expected to be less on plans than on
| results.
Only the eonspicuously III Informed
look for q complete easing OF credit
in the near future. As a matter of fact.
seasonal needs this fall will probably
require further expansion Of loans and
notes outstanding. Uusually the credit
peaks are reached in October and De.
cember. Because Of ski!lful handling
of their resources on tho part Of bank.
ers, it IS likely that tho period Of
greatest strain will como earlier this
year. After the end of the year, though.
q greater than usual freeing of credits
- hA at-l ~