Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-06-05
ECONOMIC events
AS VIEWED IN n. Y.
Wall Street Doings and Trend
Of Business All Over Country
Discussed
BASIC STRUCTURE STRONG

New York, June 5.-The New York
Sun and Herald's financial review Of the
week says:
"The Memorial Day recess and the
approach Of the political conventions
served to make the shortened week one
Of those curious periods in which all
interest and initiative seemed suspend.
ed. Yet. quiet as 1t was, the week was
not without its constructive features.
Sentiment was passively bullish. The
prospect Of Congress adjourning until
December under ordinary circumstances
would have stirred Wall Street into
positive buying OF securities, but as it
IL there can be no assurance that an
extra session will not be called even
though the President has made 1t known
through the minority leader on the floor
Of the House that only matter OF the
80. Therein lie many possibilities:
But the pleasing surcease of national
legislation has been neutralized BY the
fact that the Republican National
Convention meets next Tuesday in Chi
cago with a multitude of candidates for
the nomination and little to indicate
who the successful aspirant will be:
Should the choice command widespread
approval Il Is regarded as likely. that
the stock market may respond oriskiy,
since there can be little doubt that the
country az a whole and the street us
well stands ready to welcome a change
of marty control at Washington. A
great deal depends. therefore, on the
Renublicap candidate. The technical
position, within the market undoubtedly
fayors a rise, given the required devel-
opments. .',, ~
Panic talk has happily subsided. The
banking position is sound and the credit
situntiop, while still a good deal strain
cd. gives promise Of improvement In
The light OF the advance OF the New
York and Boston Federal Reserves DIS
count rates and the consequent tur-
ther liquidation OF commercial loans
Any step which tends to that end wltn-
out imposing indiscriminate hardshlp IS
felt to be long stride forward IN the
necessary process of restoring the busi-
ness structure to q normal peace basis.
The odious soldier and sailor bonus
bill, passed by the House OF Represen-
tatives at the beginning OF the week,
has been buried in committee IN the
Senate with little likelihood OF its ever
being enacted into law. That is one
very disturbing possibility removed for
the time being at least.
Cotton Outlook Dubious
The outlook for the grain crop, while
none too good. gives some promise OF
n better harvest than can now be fore
seen with certainty. Cotton prospects
are indeed dubious, but the final esti,
mate will not be made until the end
of July and in the nearly two months
interval there will be much room Tor
hone. In the report issued by the De.
rartment Of Agriculture on June
condition of the staple as of May %
was estimated at 62.4 per cent OF nor,
NAL, the lowest in several years and
comparing with 1916 per cent last year,
S2.3 per cent in 1913, 800 per cent
in 1917 and 1871 per cent, the ten
year average.
There was temporary furry In call
money rates the first of the week when
10 per cent was quoted at time when
the government was again withdrawing
deposits and following the indiiferent
bank statements Of last Saturday. On
Tuesday the renewal rate was advanced
TO 8 por cent, but on the same day the
loaning rate dropped to 6 per cent and
ruled at that figure for the balance OF
| the week for both renewals and fresh
| accommodation. There was virtually
no demand, however. 1t is probable
| that the ensuing week will experience
little change in respect to demand or
to rates because of the approaching due
date for payment of interest on the
first Liberty Loan bonds. Time funds
were unchanged. There was rather
more activity in bank acceptances and
commercial paper at rising rates, as
was to be expected following the FED
eral Reserve discount rate advances.
The growth in business activity was
sigpally evidenced by the May showing
OF new interpretations of companies
with capital Of 100000 or more. The
total of such new companies was S'o
and the capital involved 81 .4l7,6l3,-
200. according to the compilation OF the
Journal of Commerce. These figures
compare with some 600 companies
organized in May of last year with
total capitalization Of $74S, 1883 500.
Since January l, new interpretations
have involved aggregate authorized
Capitalization of 81, ,5s6. .894 900. an in.
crease of something like 200 per cent
over 1910 and 515 per cent over 1918;
1t Is stated that almost every line OF
business or of industry figures in the
new enterprises. The obvious renee
ton is that the country as whole Is
looking forward to expansion IN gen.
eral business.