Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-11-07
FINANCIAL.
BY I. 4. FLEMING.

IL
The consumers silent strike inau-
surated months ago. following a
! period Of reckless and extrayagant
buying. is working most effectively
in forcing price concessions. with but
slight evidences here and there that
tie latter have been sufficient.
There has been no rela 1ation Of the
pressure in many lines especially
those that have not. reflected in the
i retail the great concessions granted
! by manufacturers and wholesalers.
| and in some cases where war prices
lave been only scraped in the shad-
ing.
And in the refusal OF the public
! % inaugurate a real buying move
ment in many lines. forced shut
| downs of factories have resulted
! while employees have voluntarily ex-
| pressed willingness to accept 10 and
l., per cent cuts in wages contin-
gent on steady nt-thus is
! liquidation extending even to labor
J 1t is in the New York stock market
where the liquidation of industrial
corporations las been most marked
there war prices are rapidly beins
debated and in many instances the
! low records have wiped out the lows
! If the commodity market is to be
; brought to levels commensurate with
the liquidation Of stocks. then the
! price-cuttiRg movement must go
much further.
Bears Aid Liquidation.
And in this liquidation of stocks
the decline is aided and ably abettc1
bv the efforts of the bear eleme NJ
forts.
I.iuuids ton in stocks hut reflect
the oyergrown inventories of indus
trial corporations. with stocks which
they accumulated against the period
of reckless extravagancs SO sud
Gently and effectively stopped short
70 the regret Of merchants and manu-
facturers. as it impressed upon them
the necessity of taking loss.
1t costs money 20 carry lat iayen-
tories. and when credit is strained
and the united effort for deiation
yentories follow. falling prices tempt
buyers; but for the last two or three
months buyers have been paying
more or less strict attention to the
purchase Of necessities.
Where it has been impossible TO
more or less indefinite periods have
resulted.
Turn to Auction Sales.
sSOII1o MISUNDERSTANDING eSIaDIlSn-
men s. hard pressed. perhaps-have
turned to the auction market as a
means of cutting inventories and
/, bringing to their aid the court OF
last resort-your own prices in a
liquidation movement that should be-
gin to mark the turning of the tide.
Thus we find that carpet and rug
and cloak makers for grand sales
during the coming weeks in many
large cities of the country.
1t is question whether retailers
Will take the chances even at auction
unless such prices are obtainable as
will tempt the public from it's leth-
argy.
The weather has been against bust
ness and material Improvement
would follow more seasonable condi-
lions.
1t seems but yesterday since the
great urge of all manufa cturers was
fo- speeding up-wages secondary TO
increased production. But at that IL
is questionable if there is an over
production today. Much of the trou-
be is due to the pitiable condition of
Europe.
Every product of factory or loom
is needed over there: every bale of
cotton. every shread of wheat And
all other countries are suffering from
the same thing. waritis. and the sub
sequent smashing difference between
the value Of the United States dollar
on this side Of the water and pound,
franc, mark, etc. on the other side
Any movement in the interest of
foreign trade helps America, but so
far, with good foreign trade the
needed organizations for the pur-
pose Of aiding the export trade have
not been developed.
why No Election Response.
Brokers and commission houses
have been called upon to answer this
query every day since ,he election OF
last Tuesday. Why no discounting Of
a palpable fact. of foresone conclu-
sion? Why no response to the fixed
fact?
And brokers have had to admit ig-
norance or be content with the state
ment that this is no ordinary market
deiatfon. Crop movement and credit
strain are the dominant factors"
Hundreds of investors have taken
great losses. Others have followed
the market down. hoping to get out
on 1.-The inevitable rebound" Many
are losing heart, but the records of
the past show no movement in stocks
either way for any very long -contin-
ued period.
Credit conditions will unQuestion-
ably improve with the advent of the
new year. OF this bankers are more
or less confident.
Just at the present time the credit
of the country is being used in crop
moving, while the refusal OF some of
the agricultural community to recog-
nize the law Of supply and demand is
delaying this essential movement
Surprisinx Fact.
1t is a surprising fact that during
these days OF strenuous conditions.
VI a ha II
having all they could do to care for
the legitimate needs of their clientele.
there has been an apparently unIim-
tied amount of cash availa BILE for new
bond issues at the going high rate of
interest and for Treasury certificates
with government backing
whether this demand that absorbed
the Swiss. Bern. French government,
Danish. Bell Telephone. Swift Armour,
Sears Roebuck. Morris and other great
Rotations is still in existence may be
questioned. hut these bonds. now list
ed. are all doing we'll
In October these bonds. in common
with the general list. rose better than
81. points.
Local Securitt~s.
During all the bull movements of the
war the local stock market stooe
more or less still or sustained modes
losses Its liquidation was complete
and with the single exception of
Graphophone cmmon stock. there
seems TO be nothing on the local list
TO cause any uneasiness. The phenom-
email smashing decline in this stock is
inexplicab bic by any of the friends of
the security-other than the urgency
of its needs for cash which caused
much financing when. the market con-
sidered its financing over and then
further financing in the great issue OF
common stock at 81.
Friends OF the security have ex-
nressed belief that the abandonment