Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-15


poets Of q most ample harvest the yield
in some crops overcoming decreased
acreage under cultivation. with harvest
outlook far in excess of the outlook
thirty to sixty days ago.
Americas harvest is the needed as
surance of continued business activity.
In the great security market the long
1ooked-for turn in the lane seems to
have been reached, following a drastic
course of long continued liquidation.
wiping out of margins and such clean
up in the security market as it has not
known since the first smashing declines
that followed the breaking out Of the
European conf1agration.
1t may be that there will DO further
weakness developed. as credit conditions
have not sufficiently eased to permit of
any expansion in investment and specu-
lative buying. but the situation has been
greatly clarified, weak holdings have
been transferred to the strong and high
grade investment stocks reduced to
levels that look comparatively cheap for
taking out of the market and locking
away.
But for the injection of the Polish
question into the situation there might
have been more radical recovery,
such as Is not anticipated until it has
been removed and the crops have been
marketed with resultant easier money.
It would seem as if two of the great
est problems that have been con-
fronting the United States have been
solved in the last few days, the re-
Mobilization of the railroads, their
change from a public charge to self
support and independence. and the
safety OF the greatest crops on rec
ord.
Defiation has proceeded in a more
or less orderly manner, but has prob
ably not been fully completed. Bank
deposits. seriously depleted in June
during this month. the federal re-
serve banks have not relaxed their
rates in the slightest, banks are well
loaned up and while they are caring
for their customers in essential lines,
they are really applying. the rule of
essential versus non-essential more
closely and more strictly than ever.
-tiaa Bars etm Up.
Unfl such time as the Federal Re-
with conditions and lets down the bars
for discounts at lower rates, which
cannot be expected until after the
big crop movement, money will con-
tinue close and rates high. while GER
. tain lines OF business will be COM
PEELED to pay high for whatever
financing. they need.
During ahe stringency in the money
market big cash manufacturing and
selling concerns have been forced to
pay per cent in putting their COM
mercial paper on the market.
Credit of banks with the federal re-
serve institutions is being closely
wateheaEMithse credit largely based on
reservsS&AsMkear
Private EQuiDmeut Abrasive.
Cbal cars make an especially at
trastive investment for large con-
sHIaers. due to the high prices now
beipg paid for spot coal and the In
HAcieit supply of cars which the
rafoadSsare able to devote to the
c6M traffic: A fifty-five-ton coal car
nj cosls about $4,000. Large con-
sHfders have been getting their coal
lsM with the spot coal at about
$3Za tong it tsaevident the consumer
Va is able to supply his own cars
sSD2s about $500 each time he re-
dMes one of his own cars loaded
va coal at the contract price II
rX23ipt of the car obviates the neces-
MFbuying coal in the market.
lM43,000 fifty-five-ton car thus has
t63make only seven or eight trips
fES3h thA. mine to the consuming point
dHbns2 heapresent spot coal prices
rkEhouNuf will decline in future, but
~ spkEpfice Is always materially
ake ~ contract price.
E69ivdt7&owners are made the fol-
lN4ng aowances by the railroad
cM, / ceSt a mile; live poultry, PAL
az stock and heater cars. cent
M; stock cars, coal. coke, fiat, box
a&6 gondola cars, six-tenths of a cent
aMile. The empty cars are hauled
nat. The freight rates on COM
Dfties transported on privately
o6&8ed cars are the same as charged
Instrumentation in railroad owned
cSM with the above deductions.
View York Banker Talks Back.
WNev York banker objects to an
iMzetisation into the call loans OF
NJ York bankers over per cent,
oEM4he ground that the government
hfM been the largest borrower OF
ns66ey; that the advances in rate OF
dN1unt have been responsible Tor
hikher rates for loans and that the
system have taken advantage OF con-
dff41ns to pile up great reserves.
kff4 further asks for justification OF
tkz4earnings OF the New York re-
EE6al reserve bank during the last
sRlnonths of more than 200 per cent.
EM Value of Liberty Bonds
M4his speech accepting the repub-
liSAn nomination for President, SEN
atoIa Warren G. Harding uttered one
seBf4fce that was applauded as Wig
or0,tsIy, if not more vigorously. than
anY3other He said: Il believe this
rdyfrnment should make it's liberty
a6d3yietory bonds worth all that its
citssns periodically paid in purchase
inkfhem."
ii the republican spell binders can
make the people believe that this re-
suit will be accomplished and the war
bonds will again reach par within a
brief period. they will win millions
Of adherents to the republican cause.
But 1t is acknowledged by men who
have looked into the subject that this
Is a huge task-bringing the war
bonds back to par now. Liberty bonds
are selling on the market today from
ss412 for the second liberty loan A.
to 3s01s' for the FIRST liberty loan 3hs.
For any one who can go into the
tory bonds today-who has the cap
itaI to invest-the bonds offer q very
fair return on the money at the exist
ing prices. For instance, victory ~ 8
which can be bought at 1852 for a
800 bond, show a return of $50 per
are tax exempt-show a return Of
4.0S per cent.
Par Some Day.
Some day. it il admitted generally,
the liberty and victory bonds are
going to reach par again. 1t may not
be until the very day of maturity.
when the government must redeem
them at the rate of 800 for each hun
dred dollar bond. but they will reach
par. Those who have been able to
hold on to their bonds will receive the
full value-will get back what they
paid for the bonds. Those who have
bought the bonds at the low figures
at which they are now quoted, will
receive far more than they paid.
nf