Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-21
NfpR OWED CONDITIONS ARE
WARRANT FOR WEEKS GAINS

to meet the demands incident to the
movement of crops to market.
Crop Moving Is On.
John ]. Mitchell of Chicago has even
gone SO far as to say that the peak
of the crop-moving strain has already
been reached. Other authorities think
it will not be reached for some time,
but declare that commercial borrow
ers have made unusual provision for
their autumn wants-tthat is, have
anticipated in much more than ordi-
nary degree the credit which they
will need during the remainder of
the year.
All this its in with the statement
made in this column a week ago that.
thanks to the measures adopted by
the federal reserve officials, prepare
tions for the special needs OF the
autumn money market are further
advanced than they have ever been at
this time of year
Nobody expects time money to loosen
up yet awhile or for the restrictions
placed upon credit to be loosened. But
we are well assured that there is no
longer ground for the apprehensions
of three months ago, that the strain
will be no greater than ii is at present
and we may even look ahead to the
possibility that the bulk of the
harvest demands will have been sup
piled by the middle of October and
ing of the purse strings for wall
street and other uses.
Wall street Must Wait.
Inasmuch as the lid upon fresh Wall
street borrowing will not be lifted for
another six weeks at least, the normal
expectation would be a quiet trading
market during this period. The state
ment has been made on GOOD autnorlty
d, that loans on stock exchange col
lateral are lower than they were be-
fore the war and relative to the total
of outstanding security issues are the
lowest since the civil war. rms IN
dicates that the main market posltlon
! is exceptionally strong.
1t does not deem, however, that
there may not be some further weak
spots uncovered in 1ndlVldual prop
] critics of the sort that have been ex-
| posed during the past week. The Rus-
sian-Polish situation has not, we be-
Iieve, counted in financial calcula-
tons to anything like the extent that
might have been supposed by people
who allowed themselves to get ex.
cited over the sensational writings OF
some of the foreign correspondents
/ and the still more sensational mead
lines with which they were played up
| The turn in affairs following the
successful Polish counter offensive
has. of course, been very pleasing
from the conservative financial point
has never rated bolshevik milltar!
| power high enough to let itself gel
excited on the subject.
Investment Market Be tier.
1t now seems entirely clear that the
Investment portion of the marke
not only reached it's turning poin
two months and half ago, but be
gan then and has continued since al
upward movement which is antici
pative of relaxation in credit condi
lions and a lowering of interest rate!
at no very Instant date.
Bond prices are up to point!
from their low of May and early Jun'
and this advance has been accom-
plished while the market has beer
called upon to absorb great deal o
lShort-term financing.
The over-subscription at the end o
the week to the new $25 100000 New
York Central loan is further proc
that the demand for high class Sc
curities on I per cent to 71a pc
cent basis is as keen as ever and tina
the surplus of available investmen
funds still shows no sign of approaching
exhaustion.
Copyright, 1920 by Stewart p. West.)