Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-11-19
GOSSIP OF
THE STREET


way to dissipate the report, and mt,
mate that action on the dividend had
only been temporarily deferred.
When the quotation for any particu-
lar stock drops nearly so per cent IN
less than a month, IL Is almost GER
tainty that some radical change Is about
10 take place in its dividend policy, more
when conditions are known
to be seriously interfering with the
business in which the company IL en-
gagged. o
vhich, through its subsidiaries, Is en-
vaeed in foreign trade and commerce,
has been paying dividends at the rate
Of O per cent per annum. 1t has large
interests in the International Mercan-
tile Marine Co., among other concerns
and doubt of the ability OF that com
pany to nay any further extra divi.
dends on the preferred stock Is believed
TO have had considerable influence upon
the directors of the American lnterna-
tional Corporation, in reaching the de-
cision of a conservation OF resources.
The paid-in cash back OF the STOCK,
selling yesterday at 3SA q share; Is
reported to be approximately more than
double that figure. The high price TINS
year for the stock was 12On.
Dose Harder to Swallow
Commenting upon the stubbornness
of the majority of the retailers to sub
nit to q necessary radical price reduc-
ton, a prominent local financial inter-
est intimated yesterday that conditions
and circumstances may compel the ap-
plication of still harsher means.
Every effort in a kindly sort of
way has been made by banking institu-
tions and others to persuade retailers,
he continued, to abolish the absolutely
foolish psychological policy which they
have been following In the face OF the
radical price readjustments which have
been sweeping the country broadside.
1t was recognized some time ago it
would be necessary for them to take
the purge, and the dose was made as
palatable as possible. Some had the
courage to listen to good advice. Others
ignored 1t entirely, or made pretense
that heavy overhead charges would
make it impossible for the time being.
A great many, he said, seemingly had
postponed the day of action until after
the holiday trade was over. Everybody
has been very indulgent and most every
body now Is beginning to lose patience,
and unless many will listen to reason l
venture to predict the next dose will
be q hard one to swallow.
VIII History Repeat Itself?
There are a great many in both the
banking and business world. and also
in other walks of life, who hod firmly
to the belief that history repeats itself
along all lines. In view of the unset
tlement now prevailing in both financial
and commercial circles, not only at home
but the world over, there are number
Of close observers giving much study
to past performances rs applicable to
present, conditions.
The Liberty National Bank. of New
York, has made an interesting com
parison in this connection between com
modify price swings in the Civil War
period and today. During the Civil
War;" the bank states, prices as com
pared to 1860 rose to higher point
than during the World War, as COM
pared to 1913. After the Civil War
prices began to fall at once and con
tinued to record succeeding declines and
upward movements, the declines being
always greater than the rallies. In
1918, on the other hand, there was a
decided drop in prices, succeeded by q
further rise that carried prices to new
high levels. 1t is to be noted that the
intensity and scope of the present decline
in prices are almost Identical with the
decline which took place in 1868 imme-
diately at the close Of the Cfvi' war;"
A SoIiIoquy on Chandler Auto
There was considerable uIs, 40. ..,.! on
the street yesterday concerning Il
rather unique statement issued BY q
prominent New York house regarding
the recent performance of the stock of
the Chandler Motor Co. As the house
in question is supposed to have acted
as brokers for the so called insiders
during the last year. the incident came
in for more than passing attention. Re-
garding the recent slump. of the stock
the statement has this to say:
"a group of bear traders and opera
tors, having interviewed themselves
and decided CHM was selling too high
with respect to other motor shares,
decided to sell 1t and then proceed in
imagination to usurp the function Of
the directors and pass the dividend. a
group of insiders and automobile men
who made a lot Of money in Chand-
ler's 400 point advance by buying the
stock when the motor industry was
stagnant during period of readiust-
ment after the armisticc and selling
it last spring. have been repurchnSing
CHM under so and will continue to az.
cumulate it, anticipating another big
profit next year. Both groups have
the means to finance their judgment.
CHM. like other stocks, tuctuates, ad-
vancing when buying exceeds selling
and declining when selling is more eff
fective. 1t is any ones guess what il
will do Immediately. Those who are
selling the stock are merely backing
their own opinion at the bottom of "a
200 point break. Those who are buy
ing have the absolute certainty of in
evitable business recovery next year
in their favor. the reasonable certainty
of technical stock market recovery
after a years decline and the comfort
of $40 dividend which finances their
operation by yielding 13 to II per cent
on their money. The vagaries OF spccu-
lation may favor the bears in their
efforts to induce selling by their raids,
but they will find q bid for every share
Of stock they Offer"
Foreign Trade OF France
The total French foreign trade for
the first nine months of 1920 amounted
to 43, 3,746, 1872 ,000 francs (franc equals
| S0.103 at the normal rate) against 81 =
271 ,G37 900 francs for the correspond :
| ing period of 1919. The imports of
| food products for the January -Septem-
Der period of 1920 were valued at 6, :
727 ,751 900 francs against 7,413,5 :
600 francs for the first nine months of
1,.- saI tA1n