The New York herald., 1920-01-25
WALL STREET COMMENT.
situation I'm Credits.


the weekly statements OF the banks that
developments in the money market last
week were not of a character to further
relieve the strain upon the credit situation.
On the contrary, instead of showing a
further Improvement. following the sat
isfactory exhibit OF the previous week,
both the Clearing House banks and the
Federal Reserve Bank again show a de-
terioration. The associated institutions
reported a sharp decrease in their sur
plus reserve, while the central bank has
again suffered decline in its reserve ratio.
That ratio at 39.5 per cent now is close to
the lowest level of it's history. The Federal
Reserve Banks retrogressive movement
apparently is due to the contraction it
effected in it's own rediscounts with other
reserve institutions. The volume of these
rediscounts was curtailed last week from
SIS, 10000 to $43.70O.OOO. or approximately 81
per cent. In other words, the reduction in
its borrowing was accomplished at a sacri-
flee of its reserve position.
THE SELLING OF MOTORS.
The so-called uptown crowd. which is
credited with having made much money
on the downward side Of the oil stocks re-
Gently, was believed to be behind the sell
ing movement in the motors yesterday.
The attacks were accompanied by rumors
six months of 1919 will prove a disap-
pointment. The real reason. however, forl
the selling was the belief that the tre-
mendous increase in the floating supply
Of General Motors stock will render 1t i'm
possible for the inside bull clique to mark
up the price again. The selling. therefore
was based on the volume OF shares out
standing rather than on the intrinsicI
value of the stock.
EQUIPMENTS STRENGTH.
Although the advance Of the equipments
yesterday was due primarily to short COW
ering. it is generally conceded that such
issues are in a strong position. Shortage
Of rolling stock has become serious. Di-
rector General Hines has appealed to the
shippers for cooperation In an effort to
prevent commercial stagnauon. Railway
executives announce the immediate needs
of the railroads of the country as approxi-
mately 100000 cars. That would be about
all the car corporations could turn out
during the present year Of their plants
were operated at full capacity. The Rail-
way Age has esetimated the railroads will
need III, 600 freight cars in the next three
years. Locomotive requirements are also
large and the companies are expected to
place large orders once the lines are re-
turned to private ownership. From 1915
to 1918 freight traffic on the railroads in
creased about As per cent, while the num-
Der Of new freight cars was only 36.532
or 1.6 per cent. The number of engines al
located by the government has been COM
paratvely small.
American Paper Advances.
On small turnover American Writing
Paper advanced IA points. That company
advanced the price of it's products 20 per
cent on January 10. In announcing the
advance the officials said such a course
was necessary because of increased costs
of materials. Only orders that can be
filled within a reasonable length of time
will be accepted by the company. Ameri-
can Writing Paper is one Of the largest
manufacturers of writing paper in the
country, operating twenty-six mills with
a daily capacity of 400 tons. Although it
has not experienced labor troubles the
company has on several occasions during
the last year increased wages OF its en-
ployes. Last week paper workers pre-
sented another demand for an increase in
wages. 1t is not believed any action will
be taken by the unions until after the
meeting of International Brotherhood OF
Papermakers in Buffalo on February 2.
Pressed Steel Car Earnings.
The annaul report Of Pressed Steel Car
Company for the year ended December
81. 1915, will be made public at the meet
ing OF stockholders February 1s next. 1t
is expected to show approximately $14 a
share earned on the common stock after
allowing for all charges and taxes. In
1918 s24.6i a. share was earned, and in
1917 $fp,04 a, share. The report will be
the first:issued by one of the larger equip
ment companies. Much interest is there
fore manifested, as It will give some line |
on what may be expected Of the earning
capacity OF other equipment corporations.
The company is now busily engaged in
filling contracts. Recently it completed
the contract with the Railroad Admins
tration for tho delivery of a. 600 cars The
has declined to book large for
eign orders that have been offered because
long term credits were asked F. N. Hoff-
stot. president of Pressed Steel Car, is now
on a tour around the world. during which l
he is studying foreign equipment needs |
ard the general condition of Eurcpen
countries.
Gold Reserve Decrease.
The principal changes in the statement
Of the Federal Reserve Bank are a
decrease of approximately $22.00o.0Oo in
its gold reserve, due to loss in the gold
settlement fund: an expansion of 81, 100000
in war paper loans, decrease of $4,000, ,0o0
In discounts of commercial paper and an
expansion OF AOO0,000 in note circula ton.