Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-25
PRICE CUTTING
DOMINANT FACTOR
Only Moderate Progress Has
Been Made In Liquidatlng
Commercial Credits

A
ness and Industrial situation reflected
In price. cutting and recessions In food
and other commodity price concessions.
Announcement OF the Ford and Franklin |
motorcar companies. Of cotton and tex
tile mills, aud of two large mail -order |
houses were symptomatic OF the times. |
although the specific reductions alluded
to seemingly were made rather In de-
fiance of the laws OF economics. Never
tbeless, from several points Of view. II
might be regarded as fortunate that
ford to do this sort Of thing. 1rrespec.
tive Of tax and other business factors
which most industrial concerns cannot
safely or prudently leave out Of calcu-
lation. Il might we'll be that ultimate
benefit from artificial stimulus to read
justment will accrue to all since it has
been quite unanimously agreed that
the commercial tree must undergo prun-
ing before It can once more flourish on
nourishment derived from the soil It
self and not from too expensive Ter.
tilizers. The sooner this can be accom-
plished without acceierating the process
to the point Of acute business depres-
sion, the more promptly can rebuilding
be undertaken on the basis of firm
and logical foundation. Viewed in this
light the events of the week were un-
doubtedly constructive. although &
could scarcely be supposed that the
process Of their development would fail
to depress securities values or deter the
public from active participation in
stock market trading. Tn it's broader
aspects business was characterized by
liquidation of industrial descriptions
and no inconsiderable speculative activ-
ity in railroad issues, more particularly
the lower priced shares, of companies
which might be supposed to be more di-
rectly affected by the much discussed
merger projects as. yet in nebulous
state.
Rail Merger Talk
What may come of these propositions
so widely talked about cannot be more
than conjectured at this. time as moth
ing at all definite has been vouchsafed.
To lend color to possibilities in that line
there stand the zoning provisions Of the
Esch- -Cummins law Of last winter,
which are looked at largely In the light
ct superseding the provisions of the
sherman law with respect to combina-
lions in restraint Of trade. That some
thing Of the kind will eventually take
place and that 1t will accrue to the
benefit alike of the carriers and public,
few would venture to deny. but the diff
ticulties attending such huge transac-
tiobs at this period of credit strain
would seem to preclude early consum-
nation.
| But this has little or nothing to do
with the speculative movement in rail-
stimulating such snecuI.tion reou;re
only tbe discussion of noss;hiIit;es to nil.
| ;ze them 70 tho full Industrial shares
bavc been worked hv them virtualIv tc
| n standstilI and even tbe anectacis -
| :, ,mnorarv easamont in money conditions
was not readily conducivn TO their re
vivol Rut thn conjunction of eosier
money rates and merger whispers we're
moro notcnt IN the railroad list because
values in that quarter have not VET been
exploited to the same extent. Incoming
gold and Welding commodity prices were
the princpal factors in bolsteri, . ,rcdi
arguments and yet urgent rep santa-
tions were made to the Federal Reserve
Board at Washington on behalf of cot =
ton growers and farmers in the West of
the financial need which both were ex-
periencing.
,,.,,,,,.;,. Con,or.;o, Croa,,s
q"'""'"s @''''' '"''
ms OF course. was reneetlVe OF sea
sonai demand ana VIII pass, nut tne
point impressed upon tnein was tnat ,he
board could NOT zee ITS @ way ciear 10 give
uirec' aru !" eI.net. ;n,;ns nr .T,,Un s'om,a.
Were uo'u 80 @ osf fahn1 fEdn , 20 Snomco tho;,.
. Wv ", .'O "a ~ IL tasu,or" v,ora gi,sn .mcb
eHpSr,s nnu .hn, ttr "omid Go" IN sbe nrd,n
s",'iua. I,,;n Js ." roo;i;t;oS ot tbn;r d,snosa,
~ ss,r,od tbnrofora tint Tho
',ot,nn oron,ors and tho grain farmer.
Iii ro9 ho wbolIv out of tha wood,
for n month or Two vet II indeed before
Tho close of tho ye4r. Meanwhile onl,
very moderate nrogress has been mace In
Iion;datinc COMMERCIAL credits
However. there is one ASPECT to the
changing conditions in industrial and
mercantile lines which should not be
overIooked. and that is the increasing
nurcbasing mower of the dollar, already
rather markedly enhanced as compared
with only a few months ago. The ulti
mate effect of this phenomenon on stocl
and bond values cannot but be allurin,
to rho farseeing Without doubt som,
such consideration was bchind the i'm
nroved tome in bonds particularly rail
rosd and government issues. Yesterda,
and tbe dav before Liberty bonds ad
yanced in notable fashion, To take ,