Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-04-17

StOck sales today on the New York
exchange, rs compiled by the Evening
Sun. totaled 4ss, 700 shares.
New York, April 1.-THE Evenins
Sun in its weekly financial review to =
day says:
It was not apparent that anything
was lacking in the current weeks de-
velopments to emphasize the high cost
of credit throughout the world. The
Rank Of England raised it's discount
rate to per cent, from 6 per cent,
at which level IL had stood since last
November. A few days previously the
Bank Of France took similar step.
Still earlier the Federal Reserve bank
did what amounts to the same thing.
Latterly, Congress passed bill max =
ing 1t possible for the Federal Reserve
banks to graduate the rediscount rate
to member banks according to the
status Of the member banks loans ana
conditions within a given Federal Re-
serve district.
AL these things represent a twist
ing and turning to provide a suficiency
OF capital to meet the worlds need for
It. IL is question II the legitimate
requirements Of the industrial and
financial and business world can be
fully met. The question cannot be
answered conclusively now because no
one can know what the full require
ments ere or may be. The banking
authorities alone can form any approx
mate idea and they have long been
preaching conservation Of fiscal re-
sources. A fortnight or so ago most
everybody, not responsible for provid-
ing the sinews Of postwar reconstruc-
ton, affected rather gratuitously to see
easy money coming. Only last week,
when some IS ,0O0. 200 was loaned for
three and six months, the incident was
hai.ed as a break in the time money
deadlock. Yet the rate for fixed date
funds held at S1a to Q per cent. ac-
curding to the nature Of the collateral
offered.
The came was true Of this week
which. in addition. presented the spec
tacle of call money loaning as high as
Is per cent and renewal rates ranging
from 6 per cent at the beginning to
10 per cent at the close. The highest
renewal rate for the year was II per
cent. on February 9. and the highest
loaning rate 25 per cent. on February
4. The last previous 10 per cent re-
newal rate was on March 3. since
which time renewal rates have ruled at
6 and per cent.
Events of the week were ex
crescent influences on the funda-
lnental state of world credit, such as
the sudden md astonishing outbreak OF
the unlawful railroad strike, the pre-
umedly temporary suspension of incom-
ing gold shipments and resumption of
outgoing shipments to South America.
Cuba. Mexico and the East Indies, the
advance in the Bank of England dis
count rate (which. however, had been
Pretty we'll discounted), Withdrawals OF
United States deposits in the banks,
amounting to about $40 600 900. new
issue of treasury certificates of indebted:
ness at 8 and 5h per cent for three and
six months maturities respectively, the
highest interest rates which the govern
ment has been called upon to pay since
the Civil War, payment of coupons of
the fourth Liberty loan and so on.
The railroad strike "froze" funds to
n material extent. It's duration was
certain to be brief because it was alb
normal in conception. Whether or not
the federal attorney general can prove
his charge that the /. w. w. and
elements were behind the
move, Wall street regarded the fact
that no demands were made in advance,
that the orders were issued under cover
and in defiance of the labor union lead
ers. as evidence that the employees were
imposed upon and made to believe that
the unions were secretly behind 1t.
While the strike itself soon demonstrated
that it was doomed to speedy failure,
its effects were deemed certain to spread
over a considerable period of time.
Money is required to finance suspended
industrial animation.
Just at the time when car and fuel
difficulties were being overcome and
production was making new strides for
ward, particularly in the steel indus
try, this thing happened, with the result
that nearly half of the steel trade came
to a standstill. The Iron Age stated
that IL the tie-up lasted many days
longer, the shutdown of steel works and
rolling mills would be nearly complete.
A reserve supply Of raw material miti-
as consumption and production were
alike curtailed by the stoppage in trans
portation, scarcity Of steel was not
greatly accentuated. Nevertheless, the
inroads on raw material reserve and
interference with normal industrial
progress give promise of after effects
not soon nor easily effaced.
Steel is a representative industry and
the conditions forced upon it may be
taken as reflective of those forced on
most other industries. Among other
things, the uprising, sufficiently ominous
in the character of the impulse behind
it, imposes an increased burden on the
government with respect to railroad
costs and may be supposed to interfere
not little with the projects for new
financing of the railroads themselves.
The director of the bureau Of railroad
economies estimated daily loss of
So, ,00O, 900 to the railroad companies in
reduced revenues, which would entail
a loss of not less than $21 ,000, 900 for
the seven days of the week, not count
ing loss from damaged commodities. In
creased operating expenses necessarily
result and the public must make good
in taxes. An immediate consequence
was that the treasury felt that tn, time
would be inopportune to put out the
$500 900 900 in railroad equipment