Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-06-21
Bank Statements Show Con-
tinued mprovement-Big
Gold Imports Expected.
BY STUART p. WEST.

strongest showing of any similar re-
port in the last four months. The
reserve ratio rose from forty three
to above fortyfou per cent and this
despite small loss in gold.
FEDERAL reserve notes decreased for
the third week in succession and the
gained.
All tnis Is very encouraging to the
hopes that the restrictive measures
introduced toward the end of May
nave become effective, that credit ex-
panslon has passed its peak and that
liquidation of the so-called non-es-
sential loans was begun. or course
last week was somewhat abnormal
because 1t Included the special opera
tions incident to the retirement of
over $400,O00,000 Treasury certificates.
rms naturally led to the repay
Inent OF an exceptional amount by
member banks to the federal reserve
institutions on discounts secured by
war paper; consequently it was not
an altogether fair test.
Encouraging Facts.
But the fact that loans have been
coming down steadily for nearly a
month, and that this, more than the
additions to the gold supply. has been
responsible for the strengthening of
the bank position is extremely reas-
surfing.
If. along with this credit reduc-
Lon and coincident lessening of liza
ointles. we are to have between now
ana september an import of $4,000
ooO to S1O0.000.000 of English gold
there will no longer be much occasion
Ior uneaslness over the autumn crop
moving.
There were strong spots and there
were some weak spots. The resump-
ton OF the rail strike in the Phila-
delph1a- Baltimore district was one of
the unfortunate factors, but it was not
permitted to exert much effect one
way or other on stocks of the rail-
road companies directly in trouble.
The European situation was another
factor for creating caution.
weak spots were Barrett Crucible
Steel and Studebaker.
D., L. & w. Higher.
The best strength of the session was
in Delaware, Lackawanna and West
ern, which moved up another twelve
points, making the gain since Friday
fully twenty points. Textiles and su-
gars were l to 2 points higher, as
were shippings.
The call money rate remained I'M
changed at per cent.
The Bond Market.
Very slight changes and the same sort
of quiet trading that has now become
familiar were the features of today's
bond market No new offerings had been
announced up to the close of business,
but one or two are expected during
the week.
The buying movement in United
Kingdoms which followed the rise in
the Anglo-French bonds appeared to
have run its course. and these issues
we're easier.
In the same way the recovery in the
liberty bond division. which came
about as the result OF the success of
the latest tender Of Treasury certifi
Gates. also halted. Most of the lib
erty's were a shade lower than where
they left of Saturday
There was little incident in the bond
market for corporation bonds. Some
sales occurred in Distillers' SIS at rs
down to 75h. It is very rare nova
ties.
All but about $500. 900 have been
bought up by the company. which also
stands ready to take the remainder or
any part thereof as offered.
Delaware and Lackawanna.
The jump of twenty-five points in
Delaware. Lackawanna and Western
has brought out all sorts Of rumors
Some think it foreshadows separation
OF coal and railroad properties and a
stock dividend to be paid out of the
proceeds of the former
Others say that a short interest
created at the time the cut in the
Northwestern dividend had made the
dividend paying rails very unpopular
has been forced to pay the penalty.
This latter theory is almost unbe-
lievable; for nobody in his senses
unless he had the actual certificates
available for delivery. Moreover.
there were only a thousand or so
shares. which came out during the de-
cline in the stock. while on the sub
sequent rise several thousand shares
have been dealt in. This was SUFFICIENT
to prove that the purchase since last
Friday could have represented the
covering of short interest put out
when the Northwestern dividend was
reduced.
The Equipment Stocks.
The continued shortage Of essential
materials is the primary difficulty
with which the equipment companies
as group are now obliged to con-
Co. It is largely a question of
acute freight congestion on the rail-
roads and breakdown in the trans
portation facilities of the country
American Locomotive dropped its per-
centage of operations as low AS -
Jumped back again to So per cent.
Since the turn Of the year the com
pany has been building up its bust.
ness. but due to difficulty in obtaining
materials there has been a consider
able variation in monthly production
unusually violent fluctuations is the
fact that the company has a fairly
satisfactory volume of new orders
and has at present sufficient orders
on hand to warrant sustained opera
tions at so to 70 per cent Of
capacity were it possible to obtain
the necessary materials. It was stated
the close of the six-month period to
December 81 that the total Of untitled
orders carried into 1920 was $7,S62 ,157.
Orders Have Expanded.
These forward orders have con-
sistently expanded since that date and
at present total better than $4,000
900. There are under discussion by
the Export Locomotive Association
through which American and Baldwin
jointly handle their export sales some
important foreign business which if
booked would give each company
about $25.00o.000 Of new orders.
American Locomotive. because of
operating difficulties. will make an
Indifferent showing Of earnings for
its half year 10 June 80, Hayden
Stone concludes The preferred divi-
dends will be covered, but it is pos
sible that the six-month dividend Of
per cent on the common may not
be quite earned. The company 10 in
such satisfactory financial position.
however, that it makes little differ
ence II a lean six months should inn
pose some slight call on surplus.
However. given a fairly regular sup
ply Of material and parts the second
six months should be better than the
first, and three good months are ali
the company needs to show the COM
mon dividend for the year earned.
CHICHESTER WEDDING