Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-02-14
MARKET GLOOM OF
!. CONTAGIOUS TYPE
Shortcut Experiments Fail in
Solution of Economic
Problems
a HUGE SELLING WAVE

New York. feD IL ine
Sun In it's weekly financial review To-Day
says: -. ;,so;+o conor;tv for
,...;ne tbe real and the unreal, the sub
n.oncs and the specter, and from the
,s,ian;cal alliance deriving gloom or ella
ii,vs LIVE nc the case may be, is proverbial.
npn Mpn manifestation of it this week was
nresent in all phases of thought and
act;on. n contagion of depressed spirits.
;nuidation in the securities market.
.,amn fortnight or more ago. extended
~ nroportions of what some were
chased TO style "silent panic. Vari-
prs reasons were advanced for this wave
of I selling. Some of the factors were
tangible enough. as. for example, the
throwing on this market of foreign
Mold American shares. the closing out
nf none too strongly margined domestic
eccounts and the advantage taken of
both movements by the speculative ele
nent with bearish leanings.
But these things were symptoms of
tbc PSYCHOLOGICAL. They reflected a
fuller knowledge of economic and social
nroblems confronting the world, without
any offset of convincing, concrete pro-
grams for solution, and gave rise to the
Suestion whether there can be definite
solution which does not entail long years
of firing effort.
The present situation would seem to
be the elimination of short cut expert
ments tried out in the period since ac-
tive hostilities ceased. There is no longer
conception of a royal road to rehabili-
tation. The world knows now that such
road must be built on a solid foun-
dation of saving and productive work
The knowledge has come late; it has
proved a sharp disillusionment never
theless it has provided solid footing
at last, although the pit may be deep
and the climb upward laborious.
Europe's Big Problem !
The significance of this found reader
Interpretation in the foreign exchange
market than elsewhere notwithstanding
that that market, was still in a state
of speculative ebb and flow. The ex-
ports of the United States in 1919
amounted to 81 .922 .000. 900 and the i'm
ports about half. or SO, 005, 900, 900. OF
this country's nearly $S, 900. 600 900 in
outgoing shipments, some $1,000, ,00O,-
600 went to Europe. In return this
country received only about $500, ,0O0,-
600 from Europe.
These figures represent estimates of
one of the leading banks here. How
long this huge balance cSn go on piling
up and by what means paid for is the
question of the hour. There is not
enough gold in the world to pay for it
and it would not do any good if there
were. Gold is a token of goods, not
in itself payment 1t remains then that
foreign countries must contrive to pro-
duce goods and material to pay for
goods and material.
1t is Europe's problem to so regulate
her imports as to get the greatest good
out of them in the way of re exports.
This involves curtailment of her de-
mand for many things of less essen
tial nature which she has been buying
with relative freedom on this side, and
restricting basic requirements to her
practical needs for the purpose in hand.
This, in turn, involves backing up
IN our outflow of goods and a cOnse
quent dGhation of commodities prices.
drop in prices has already been seen,
although it is not very apparent that
the drop has as yet reached the con-
sumner. 1t has, however, created the,
fear of industrial depression, and while
this state of things has served to bolster
the exchanges and to accelerate liguida-
ton OF loan accounts, it has ut the same
time put an effective damper on the
stock market
To Bridge the Gulf
1t is the problem of the United States
to provide the means for Eurone to
bridge the gulf between her maximum
ability to do for herself and her need
tbo n1 " ~ "h ,he io"u W
month for an international conference
The signatories submit ~ said the
statement accompanying the call, that
while much can be done through normal
banking channels tbe work;nr con;tai
needed is too large in amount and is
required too quickly for such channels
to be adequate.
They are of opinion. therefore that
more comprehensive scheme is nee
essary. 1t is not question of afford
ing aid only to single country or
even single group of countries which
were allied in the war. The interests
Of the whole of Europe and indeed nj
the whole world are at stake. - n was
stated that anv scheme sbor,d onoo''n ~ was
Of s crad;t =" the greatest. extent the supply
through normal cbanneIl bI and tbot ~, 'raae aa
sistance should ha a;von IN 90
which would ieave rat;ono, ,5 ;ntan .ornn
national trade froo frnn, ord, "a ana ih.er
control of governments
This, in outline renreserts u,bot w.,,
street is think;no abon, ,,b;io " I, nii op
templates its own ;mmed;ata me ohfo,. Ion
In the form of reced;ny secmr;t;as u,;ens
money tightness refieeted n tho .t';,' :
uncy of ienS''eu ia 'he stfih