Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-26
DISTANT VIEW ON
OUTLOOK NEEDED
Relief for Money Situation Lies
in Speeding Up of Trans
portntion

One of the partners Of we'll known
banking and brokerage house located in
the center Of the city, who has recently
returned from trip through the West
and South, said that he has no sympa-
thy with the scarenongers and the
calamity howlers, WHO are just now
busily engaged in spreading semipanic
talk and predicting all sorts of things
that may happen.
The trouble with these people, he
said, is that their outlook is too cir
cumscribed, their perspective of the
country is bounded by the stock quota
ticns on the boards in brokers' Offices
or in the newspaper columns. IL they
would only get far enough from New
York or Philadelphia or Chicago. visit
the hundreds of prosperous smaller
cities, where few know Of the existence
of stock market, where the importa =
tion of quantity of gold from Europe
means no more to them than the i'm
portation Of cargo Of bricks. they
would conclude that the prosperity OF
the United States Is a reality. inde-
pendent of the stock market.
Gus little cities and towns are growing,
that new building Is going on. building
of homes, not skyscrapers. as rule
that the prices which the industries OF
these places are getting are very salts,
factory, that labor is fully employed
and apparently satisfied, outside OF q
sporadic strike and that any com =
plants that are made is of the failure
of the railroads to deliver raw material
and take away finished merchandise.
People here at home find complaint
for everything. he said. One would
think to hear some bankers and brokers
talk these days that stocks should
always keep going up, that there never
should be n time Of depression, when
they know the history of the past Is
one long zig gag line OF rises ana de .
pressons in prices. The stock market
needed rest and it Is getting it just
as it has done before, he SAID. ana as
it will do again and again.
He remarked that the amount OF new
building going on over the country Is
much more exclusive than is gcuerally
supposed, Notwithstanding the high
cost of labor and materials. Even IL
the outlying suburbs of Philadelphia II
is remarkable under the circumstances
He said one of the complaints he
first heard on his return to this city
was from a friend who was not salts
fed that there was not more money
available for real estate mortgages
Who" he asked. wants to lnves'
money in real estate mortgages WIZ
their low yield, when almost every daS
new issue of undOubted security
We are too provincial. he said
..J /. ,,.o,,IJ do honkers brokers auC
customers good to travel away from
home little more than they do. ant
keep their eyes open for the thing'
which mean the prosperity of the coun
try. for they are many and our pros
perity is assured.
It is the opinion Of majority in th'
financial district that the relief for th
present money situation lies in th
speeding up of transportation and, ac
cording to those best informed on th'
subject, the Improvement along this lin
during the last fcw days is distinct!
noticeable. II is said, however. tina
it will take at least thirty days to SHOW
much progress.
Now that the Interstate Commerc,
Commission has undertaken to give tn
roads every assistance in raising tn
blockade, it is believed the much dis
cussed frozen credits will shortly be
come liuuid and that better condition.
will shortly prevail.
1t is also the opinion of those WHIT
have given the subject considerable
study that higher freight rates. instea'
of being a handicap on the business o
the country. will have the revers
effect. as freight will move more rapid,
and this, it is said, is the crux of tn
situation at present.
There were some brokers who wer
disappointed in not seeing some actiol
in rail stocks as the result of the Iuter
state Commerce Commission rate hear
ing. Some acknowledged that so far a
the hearing has gone its tone is con
structive rather than otherwise. Their
is a strong belief that as the hearing
progresses the effect will soon be re
| tiected in higher prices and greater nc
tivity in rails, and many are calling tn
attention of their cSutomerS and th
public to this phase of the situation
The stocks to which particu lar attention
is being called are the old line divi
dend- paying issues.
A we'll known broker said yestcrda!
that. in his opinion. the rails will NOV
up llluh any ''h'i N''' M WI tu
board when they begin. and he expected
that to occur at any time. provided th
money situation remains favorable.
Some houses. it was said. were send
ing out messages to their clients hold
ing Industrial stocks advising that i
might be better to sell them and bu!
rails, which they claim are on the bar
gain counter and are likely to be IA
vorably affected by any change for tn,
better in transportation.
There was a good deal Of speculation
as to the outcome of the convention o
bankers in Washington last week. cspe
cially as to what action was decided
upon in reference to essential and non
essential loans.
Speaking Of the meeting, James B
Forgan. the Chicago banker, said:
Feeling among New York bankers il
that the credit strain has passed th
peak in the East and believe it is pass
| ing here in the West. Federal Reserv,
Board in considering reduction of banl
loans did not make any definite distinc
ton between essential and nonessentia