Evening star., 1920-05-23
BY L A. FLEMING.

The week ended yesterday has been
remarkable in many ways and yet il
was full of constructive news; i,
marked the turning point of the
seemingly endless liquidation of the
Liberty bonds of the various issues
coined the word frozen" referring
to credit based on large stocks OF
merchandise held in storage against
expected advances. when in the ma
tural course of events the cost OF
heights, it placed bankers on guard
over their resources and 1t made it q
little harder to borrow money at all
and especially for non-essential pur-
poses
And in all it was a good week for
the people as against the h. C. l., and
there Is much in the conditions de-
veloped Of promise that should be
realized in the next few months.
On Monday last the Federal Reserve
Board and its advisers and regional
bank directors gathered in Washing
ton for conference. Conditions were
admittedly bad. Manufacturers were
producing goods. only to have the
demand In advance of the market,
while the goods were locked away
carried by loans of the banks, wait
ing for the right time to sell. The
screws were put on against this class
of credit and the banks forced liqui-
dation of million of dollars worth
OF goods held in warehouses. One
New York institution admitted to the
closing out of s100. .OOo. 900 of this kind
of credit.
Publicity Aids Good Work.
The publicity given by the news
papers OF the country to the action
of the reserve board. the quick
response by the banking fraternity
itself and the public approval there
of gave impetus and aid to the move
ment Bankers everywhere Joined in
the move. although many were un-
willing to admit the stress that sug-
AS matter of fact the east has
steadily. but the west and south have
oeen keeping up the pace and have
oeen caught for big losses in the
cleanup.
Back to the Outlaw Strike.
Acute congestion of railroad facili-
ties caused the delay of week after
week IN making deliveries of mer-
ing markets. from being sold and OBJ
legations incident thereto from being
paid on-and the banks had to carry
The frozen" stun.
The Interstate Commerce Commits
SION rose to the needs of the case
and has taken the raising Of the
blockade In hand. advancing millions
OF cash to secure equipment and
make such changes as are necessary
10 accomplish the end. The Cum
minis measure had wisely provided
the commission with the needed au-
thority for action.
New York city, always the chief
sufferer in outlaw strikes, is now con-
sidering how best to provide against
these impositions that threaten her
0r1s~x
cisco on the Pacific, having mastered
Amil2r conditions, is giving the chief
port advice thereon.
Aetioa In Liberties
There was nothing to the decline in
liberty bonds but enormous liouida-
uon-onerings in excess of the de-
mAnd. save at concessions, and buy
ers met the big supply by constantly
reducing levels until the low was
made on Thursday. from which there
has been a substantial recovery.
Blocks of millions of dollars in
Liberties came ON the market-the
throwing overheard OF bonds by COR
finance their industries ana had to
realize on marketable assets.
After nearly two years of selling
the market has finally turned and
the change is welcome
The federal reserve board expressed
satisfaction at the turn of the tide
here and ordered that calling of loans
secured by government should cease.
1t took the stimulus of necessity
and war to place bonds at 3L to Az
per cent, and that they should seek
levels based on interest returns is
but natural The per cents the
lowest government financing, was
made possible only by the circulation
privilege which attached to them.
Money Is worth more now, and there
are pracucally no loans being made
under s per cent
New Lows on Wall Street.
Wah street stocks reached new low
the belief current at this time thai
no further liquidation is needed
IL is within the posi- Utilities that
Iurther liquidation may be in order
II holders of securities are compelled
10 empty their strong boxes to raise
needed cash. a possibility that MANY
comm Ssion merchants and brokerage
hrms will not admit, that further de-
cllnes are in order This belated
stump might be more quickly ex-
pected II weakly margined stocks
were likely to be unloaded, but the
margined shares have gone or are
protected below present prices, while
the low figures current has brought
an army of bargain seekers into the
larket-just as the smashing breaks
Wall street has liquidated for
months and there are no congested
holdings
Mexican Situation.
y II is within the probabilities that
a friendly administration strong
enough to maintain order will be es-
tabhxhed in Mexico. following nearly
a decade when disorder was RAMPANT
and II appeared that trouble with the
United States was only a matter Of
exhausted patien
The feeling in the United States is
that relations between the two gov
ernments cannot fail to show inn
provement from those in the Carranza
rule
The Mexican propaganda against
this nation under the late chief was
persistent and not without its effect
in other Latin American nations
Local Financial Situation.
As matter of fact conditions To-
cAI1y are better than they have been
stock market has been a slow, drag
ginG affair for years 1t has been
liQuidated time and again and the
low prices are an evidence that there
has been no imitation here Some
public utility stocks may be held by
bankers as collateral but the amount
is probably not large
Columbia Graphophone found a
level last week al 271e forcing mapy
holders TO get out but elsewhere
there have been no severe changes
slight scaling Of typesetters- both
good dividend payers and earners, has
been going on. but there is no threat
in Lanston or Mergenthaler.
To the Conyenfion-
weeks frpr, tonipbt the ~@>a-