Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-19
BY I. A. FLEMING.

September IA is over. the third in
stallment of income taxes has been
paid, the crop movement is well under
way and federal reserve officials, who
have kept close watch on conditions
for months. admit that the peak of
the money demand is over.
! Three months ago time money. except
for the most essential purposes, was
hard to obtain: time money for Wall
street. as representing the. security
world, was out of the question.
Today Wall street can obtain money
on time for six months at the going
rates and call money at a rate that is
as welcome as it is unexpected.
| The great crops are on their way
to market. There is no money for
| carrying crops over for better mar
kets, and it is to be hoped that the
banking element will lend it's aid to
! the plans of the reserve board by not
permitting carry over of grain or
cotton.
Wall street always discounts. It
never waits for the realization of the
event. Before the money stringency
developed. it sold stocks right and
left. and killed q great bull market.
! so that there was but a secondary de-
, cline when the full, effect of the
StrfngenCy was te1t.
Wall street is now discounting the
improvement in financial conditions;
the great betterment that will come
to the railroads of this country
! through the Esch-Cummins act and
through the removal of restrictions
! that have hindered growth and de-
| volopment of the rail arteries of the
nation.
1t may also be said to be discount
ing an Improvement in business con-
ditions that is promised. but not
under way. and it is most certainly
discounting the safe garnering of the
great crops which mean hundreds Of
millions of new dollars through our
export trade.
/ Labor Sees q Light.
1t is claimed by those in a position
to know that labor has seen a light.
1t may not have glimpsed as yet
the great light of justice and reason.
but it has apparently sensed a change
for the better, as evidenced by the
wild rush Of railroad employees in the
middle west for their old jobs, as
against the official strike cry. 1t also
is stated. that production has increased
80 per cent.
Labor. too. may have sensed the in
creasing competition of newcomers
from other lands, seeking employ
the facilities of the eastern gateway
Ellis Island.
Washington I'm Funds.
Many Washington bankers were .ad-
mittedly surprised by the reports of
deposits made in response to the call
of the controller of the currency as
of September 81 Predictions of seri-
banks did suffer, but the majority of
state and national Institutions gained,
while the aggregate showed but a
relatively small loss.
BY the November call the local
banks should show a gain in deposits
and increase their available funds
materially during the winter to a let
up in the stringency. 1t is within the
possibilities that merchants have ac-
quired a beneficial lesson as a result
months. 'They may decide to do BUSH
ness with less borrowed capital in
volYed, through more frequent trips
to market and orders by mail as
needed rather than laying In large
stocks, to the abandonment Of many
Of the so-called bargain sales that
scale profits later on. ~
Cauti0a Maintained.
The precautionary attitude Of the
public toward merchandising is con-
tinued, with no disposition to- be lib
eral, despite the steady modification
of prices during the last few months.
Resistance to high prices continues.
uCAO 10 AOS q oAAS4S ONA0SASO Va q
boom in anything. and, with every
thing favoring tho buyer rather than
the seller" the retailer must still
maintain a conservative position with
the manufacturer and 3obber.
/ 1t is generally expected that when
the movement in general merchandise
ing comes the west will lead the way
aud set the pace: hence there Is some
little disappointment in the report OF
but little doing from Marshall Field
o. ~ ~ 1SS~ yNtp Inc
house.
The West Optimistie.
Commenting on the optimism OF the
west and northwest, ]. S. Bache &
Co.. have this to say:
1.-The west and northwest are more
optimistic than the east. Cancella-
tons of orders are not a worry there,
there is a question as to whether
future prices will not be lower. wish
to place themselves in a position to
display adequate selection OF goods
on their shelves rather than to risk
disappointing theft customers with a
tious buying. The crop states as a
matter OF fact. are much less subject
to business doldrums than are the in
dustrial sections. The shutting down
Of textile factories in the Lowell dis
|trict. for instance. brings an immedi-
the depression becomes widespread. it
lis eventually felt in the west. but
its force is weakened in transit and.
unless crops are universally poor,
quickly dissipated. It isNot to be in
ferred that this publication antici-
pates a widespread industrial depres-
sion during the period of price re-
adjustment. Emphasis might rather
be placed in the other direction. II
industrial depression has it's effect
,<aA
the prosperity of the agricultural
states has its reflex upon the indus
trial regions. Agricultural conditions
are good. Prices. with some excep-
lions. are favorable to the producer.
The 1920 crops will bring, as great
ever received. II transportation
service might entirely be relied upon.
and the coal supply assured. pros
perity would be almost unavoidable.
working gradually but irregulariy
lower. Here! and there an exception
appears, like fuel which is higher.
silk. wool and cotton. however. are
much lower. and these are the bases
of the worlds clothes. Food is 1T.
yet changed much. On the whole.
however, it may be said that the great
majority of articles in common use
have been lowered in price, and most
Of them are trending still lower. This
lis especially the case in the whole-
sale markets. The retailers. mis-
takenly, and probably wherever pos
sible, are putting up a fight to main
tain former prices"
Local Securities More Active.
| There was an improved demand for
local securities during the past week
with Railway preferred continuing to
reflect the hope of the continuation
Of the preferred dividend and holding