Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-04-20
BANKERS ADVISE
CAUTIOUS BUYING
Cheap Money Likely to Have
Some influence on Price
of Securities

Fear Of disturbances In the labor
world around May I will cause q gen
eral depression in both industry and
finance till after that date, Is an opin-
ion held by many in the financial dis
trict. Some say that the probability OF
cheap money In the meantime may have
some influence on prices on the stock
exchange, but not enough to be OF i'm
portance. Possibly II Is for these res-
sons that conservative houses are sd-
vising caution to their clients.
A we'll l-known banker and broker
said that the condition in the stock
market yesterday. in his opinion, was
due to the financial condition In Japan.
where some eight or nine banks have
lation in silk. There are. he said. no
greater gamblers than the Japanese,
and the conditions to which he referred
were the occasion for a sudden drop OF
$5 q pound In the price Of silk.
But. he continued, the most serious
part OF the matter Is that the Japanese
have a credit Of 500, 900 900 In the
United States, and X they should with
draw IL to bolster up their domestic diff
ficulties II would mean goodby to any
possibility Of cheap money here for
long time to come.
There seems to be some mix up in
reference to an issue of Union Pacihc
equipment certificates, and no satisfac-
tory explanation Is obtainabIe. The
latest apparent development Is to the
effect that the fruit and produce grow
ers in the Northwest and on the Pa
cifc coast may either buy their own
cars or arrange in some way to finance
such equipment for the Union Pacific.
Arkansas Natural Gas il in the lime
light again. A well defined rumor says
It will shortly sell at $50. There is talk
Of a 200 per cent stock dividend after
the next directors meeting, and 1t is
said the annual statement, which will
be made public at that time, will show
ample earnings to cover the dividend.
The board Of directors Of the Arkan-
sas Natural Gas Co. are principally
we'll known Pittsburgh millionaires
whose success in gas and oil develop
ments has been phenomenal. The COM
pany was reorganized some years ago,
and it was said that during the reor-
ganization oil in great quantities was
discovered on the lands leased BY the
company for gas development. Since
then the concern has been very sue
cessful. it was said.
A story was told by a gentleman
yesterday who owned $1,000 Arkansas
Natural Gas Co. bonds and 100 shares
of stock before the reorganization.
For time. he said. the market for
the bonds was very low. and there was
no market for the stock. Before the
reorganization he got par for his bonds.
and shortly after an offer Of Is was
made for his stock, which he snapped
at. When the reorganization took place
the capital stock was largely increased.
and the original stockholders got ten
shares Of the new capitalization for each
share Of the original stock. This man
said he was delighted to get Is for his
stock at the time. but "think.' he
said, what I would have got If I
had held out a few months longer
There is good deal Of loose talk
these days about the failure of pro-
ducers in the United States to produce, -
said an uptown banker, but is the i'm =