Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-15


nnouestioningly. This attitude mas
coincidcd with the arrival OF the credit
nroblem at the doors OF mercannle
establishments. The result has been IN
several notable instances That such
establishments have revised thcir. prices
downward. The process OF credit llqulua
10, hns becn carried far in Wall street
that nrocess has now been extended to
commercial and business channels,
There Is seen in this n beginning OF the
Inevitable adjustment which the country
must oxncricncc before II can start anew
on n sound and normal basis.
Some take the view that the sooner
hopipniuc j. made the better IT will ho
for everybody concerned. This IS long
range view which is constructive be-
cause. as in the case Of the patient
undergoing painful treatment. IT points
straight to recovery aud strength. cthcrs
con 500 only the bitterness Of tho medl
nire This class may be said to repre-
sent the professional element In the stock
r,nrkot II i tho class which NJ present
is making market sentiment. Six weeks
ago that class was hulliSh because the
public was in the market 10 some extent
and day to day business in stocks was in
comparatively nourishing condition.
To-day it is bearish because there is no
public trading in stocks and there Is
scant profit in tho give and take be
tween tho traders. The public has
learned that tho country must take
nil. II stands aside to see how the pill
will work.
The I nitcd States has sound con
,,itutinn and should respond readily to
treatment. To look Cor calamity is to
invite il, The country will require all
its resources. hut, as n banker of note
remarked n week or more ago. IL has
the resources and panic is not tn be
thought Of. An interval Of business
dcnrCsSiNn can scarcely hc regarded nS
too high n price 10 pay for the victory
achieved over autocraCy. These are the
terms in which Wall street leaders are
thinking. Tho technical position with
In tho stock market j. not lacking in
elements 10 encourage lrirrs arc drag
cling along the bottom. II was stated
that liouidation Of the week was pretty
wcll absorbed by investors who bought
and took the stocks Qua of the market
There j. si2Hble short interest still
although it is probable that II Is Spottf
rather than uniform Tn" yield in
stocks and bonds alike has boon brought
more nearly in line with the cost of
capital.
Money was tight but rates were not
high under tho circumstances. Call
loans rates indeed advanced 10 rs high
ms I2 per cent at tho end Of the week,
mainly because of government with
drawals Of some S5T 900 ,0On against
tho payment of interest coupons due
OF tho second Liberty Loan today, but
they ruled around I and per cent.
II served to show tho Scnsitiv"uoss Of
the demand money market at II time
whom demand and supply alik" were
moderate. That investors have money
with which to buy securities when the
interest rate is at all commensurate
with the present cost of capital waN
rroved conClusivcly by tho cugcrucss
with which new offerings wcrc taken
There were Northern Pacific equipment
trusts aud Pacific Fruit Express Co
notes. both paying per cent, which
sold quickly. The Morgans offered 81.
800 600 Louisville and Nashville ten.
year : per cent gold notes and other
similar projects were in the ai",
The foreign trade situation has some
aspects to recommend it, While it i
true that cur exports IN moro important
destinations cUntinuo to increase. II cir
cumstancc deprecated in some quarters
because credits here are largely pay ing
for them. it is equally true that imports
from Europe ar" also increasing stead
ily.' For example. Great Britain'> OK.
ports in April w"rc nearly double thoSC
Of 1919 and more than doubt" those ("
1919. The same is approximately trur
Of every month this year. The increase
in her imports. particularly from thi
country. was made up mainly Of mn
t"rials and partly manufactured good
L.. Co. f,,, h,r So. .
March. tho United Kingdom. Franc
and Italy increased the value of thei
exports to the United States by 900 pc
cent. as compared with January. 1919
England has shown til" most conSistcu
gain. France maHoS a very good show
/ ing. whilc Italy has been bit sporadic
but tho trend toward restoration Of
moro normal balance Of trade is no
TO b" ignored.