Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-12-31
GOSSIP OF
THE STREET

airoad Stocks and when q large part
OF the transactions on the exchange con-
sisted of dealings in high class railroad
issues.
In his opinion, there will be stead
lily growing demand for the dividend
paying railroads which are now obtain
aoie at prices giving a return from 8
10 over ~ per cent on the investment
| and that IL will be one of the bullish
| factors when these stocks move up to
leyel from which the investment return
VIII be reduced to 9 per cent.
| "niie bullish on the railroad stocks.
ne was averse to taking long posi-
tlon on the industrials which had de-
pended upon war activities for a profit
able business and stocks OF such cor
porations. in his mind could not be
expected to share in any improvement
stocks.
Sterilization Of Business
The Franklin National Bank in it's
January issue of the Digest of Trade
conditions. takes q rather favorable
view OF the outlook for general business
for the incoming year. Discussing the
situation the forecast has this to say:
Changes in business conditions
which, during ordinary times, would be
considered unfavorable factors may not
IN the present situation prove to be 70
unfavorabIe as they might appear on
the surface. The tendency toward a
smaller volume of business and lower
prices Is necessary movement for the
stabilizatiOn of business. Particularly
favorable factors reported this month
are a heavy gain in merchandise ex-
ports and favorable trade balance, heavy
canal traffic, n gain In both gross and
net earnings of steam railroads, heavy
iron ore shipments and satisfactory
fuel production for the year to date.
A Turn Bound to Come
Undoubtedly the foremost question
in the collective mind Of commerce and
ter of the Mechanics and Metals Ma
tional Bank Of New York, ''is how long
the present depression will last, whether
ii will become more severe and what
time will mark the beginning of a re-
vival.
The answers to these questions de-
pend rpon a multitude of factors, psy
chologic as well as economic, and an
swers cannot be given with any fnality.
But we do know that trade cannot re-
main long in its present position.
Abnormal conditions correct them
| selves. IL the pendulum swings too Tar
in one direction. it will swing in the
| other. Just as the rate of buying a
| year ago was abnormal. so the present
| rate is subnormal. Because the former
rate Of spending was too fast, 1t brought
exhaustion of resources and savings. 1t
IL these violent swings in buying de-
mand that unsettle business. Business
mtn, sometimes becoming over san
guine, assume during period Of ex-
travagance that the rate Of spending
will continue; they produce to meet It.
II 1t falls suddenly, there Is a condition
such as the present--a surplus Of goods,
lower prices, wiping out Of profits,
mills and factories, unemployment"
Electric Storage Battery
One of the leading local, brokerage
houses has issued a special letter giving
n comprehensive and interesting review
of the operations of the Electric Stor-
age Battery Co.
"While the company naturally felt
the depression in the automobile trade"
the letter states, "the general business
Is reported excellent. Storage bat
mercial uses and the products of the
company are 80 diversified that its
business prosperity does not depend
altogether upon the state of the auto
mobile industry. Some employees have
been laid off, as is true Of other in
dustrial plants, but this has not been
done on a large scale. Work on the
new plant is proceeding in satisfactory
manner. In reliable quarters, It is
stated that the company will continue
to pay, its present dividend rate in
definitely
Siam Rice Export Embargo Lifted
According to a telegram received BY
the State Department from the United
States minister at Bangkok, the exist
from Siam Is to be lifted on January
1, 1921. During the first six months
OF the coming year the Siamese Gov
ernment will permit the expectation OF
400 900 tons of rice:
This prohibition had been in effect
since July -, 1919, when, due TO the
shortage of rice in the country, an en-
barge was placed on the expectation Of
all rice products except that previously
contracted for. On December l, l9lD,
the almost total failure Of the 1919
embargo for the entire coming year,
with the possibility Of extension into
1921.
Rice constitutes the principal article
of export from Siam and in normal
wears the value of rice and rice products
exported constitute about S8 per cent OF
the total exports of the country. The
exports of rice from Siam for the last
Ave- years have averaged about 1,272,-
200 abort tons, valued at about S25,-
3S2 600, but in 1919 this amount fell
to A46 900 short tons while the value
rose 20 $43, $50 900.
The raising Of the embargo on eI-
nortntion should greatly stimulate the
export trade Of the country, which has
been depressed for more than a year.
Rank Of England's Low Reserve
The Bank of England In the weekly
statement yesterday reported a fur
ther drop in its proportion OF reserve
TO liabilities to 1880 per cent. This
ia the lowest record reached since the
manic OF May, 1896, when the reserve
percentage dropped to 3.25. A year
AGO the percentage was go. Year end
reonirements were reflected in this
week'a abatement. There was large
increase in deposits Of about 80, 900, i
NNll hounds. Bullion holdings were |
swelled by SOC, 900 pounds bringing total
holdings to 128, ,267 900 pounds, a new
bigh record. The French bank state
ment disclosed slight increase in gold
and a 457 900, 900 franc expansion in
circulation. THE TRADER.
NEW YORK COFFEE MARKET
New York, Dec. 81.-The coffee
30 20