Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-02-07

sibility Of a too sudden deflation In
commodities prices.
Gable advices from Great Britain
were to the effect that buying of cot
ton was stopping, that some consign-
ments even were being returned. This
was not official and had nothing to do
with government action, but the decline
in the value of sterling bills to an ex-
treme low at $3.19 rendered it ques-
tionable whether it were worth while
for England to increase her supply of
the raw staple at this time to be made
into fabrics for reexport. 1t was va
riously stated that her supplies were
sufficient to last from two months to
next July.
The temporary expedient of curtail-
ing II not stopping her imports pre-
sented the attraction of staying the de-
cline in the exchange rate while the
market was in a state of speculative
furry. After a day or two Of wild
movements in virtually all the exchanges
the result was substantial recovery OF
some twenty cents in sight drafts on
London from the bottom quotation Of
S3.19. Both movements had specula- :
tive rather than an economic basis. A
real corrective to the reactionary trend
can be found only increased produc-
ton and decreased consumption abroad,
and the only salutary effect to be de-
rived from the violent manifestations
Of the last week was the driving home
of that truth. 1t is fully recognized
that the task here is to get at real
estimate of the minimum help to be
rendered Europe and the means of best
administering that help.
Nations Must Hell. Themselves
The British chancellor of the ex-
chequer called conference Of bankers
this week in London, and 1t was there
agreed that suppliant nations should
proceed to demonstrate an earnest, prac-
teal effort to help themselves to the
point where it would be clear to this
country that it would be to her own
advantage in forwarding her interna
tiOnal trade to grant reasonable credits
The process will be long and laborious
but it will be natural.
The outstanding fact is that last year
the exports of the United States virtu
ally doubled the imports. This forces
recognition of the necessity Of gradu
ally overcoming the difference before
exchanges can be stabilized at anything
like parity. AS the London ccnferees
are understood to have decided, this
means government retrenchment, indi
vidual economy and work.
Bills offered in this market were fal
in excess of the markets ability tt
absorb. There was short selling to &C
celerate the speculative decline and lat
terly covering by shorts, when 1t wa'
made clear that outgoing shipments
were falling off.
But it was not wholly the spectacl,
of tumbling exchange quotations, which
reacted on the securities market, al
though they were to be taken into
course. What concerned the industrial
situation on this side was the likeli
hood of the holding up Of goods her,
accumulated for export. If the move
ment to curtail buying on the othel
side should continue for long, thos'
goods must be released for sale here
entailing a probable impairment of val
ues in the domestic market. Doubtless
commodities will continue to be shoppct
on consignment to points where suffi
ycient demand creates an advantage 4
the shipper, but il definite orders ar,
to be lessened more and more, ther,
will be less confidence in that phas'
of initiative.
The day and the week closed with II
per cent call money. One banker de
clared that the peak of money rates hat
been reached and that henceforth ther
would be a gradual return to more nor
NAL conditions. 1t was heard tina
money would be allocated for brokerag
purposes in essential amounts. but a
the same time it was made clear tina
speculative enterprise would not be en-
! couraged