Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-03
INVESTMENT MONEY SUPPLY
AMPLE FOR ALL OFFERINGS
Securities Q Quickly Taken, Over
subscriptions Being the Rule-Cor-
porations Begin Financing.

Chicago, will address the convention
Monday afternoon on 1.-THE Industrial
Situation" Reports of committees as
signed to consider various important
topics will be continued throughout
the convention. followed by discus
sions. Roy c. Osgood, vice president
Of the First Trust and Savings Insti-
tuition of Chicago, will report for the
committee on taxation" Allen e.
Forbes is scheduled for a report on
Railroad Securities: Clarkson Pot
ter on Government Bonds" and Har-
old Stanley on industrial Securities
Washington will be represented on
the new board of governors of the as
ISOLATION for the first time. as Eu-
gene E. Thompson of Crane. Paris
& Co. has been nominated, and a NOM
ination is equivalent to an election.
Mr.. Thompson will attend the con-
vention.
Comments on Credit.
The New York Federal Reserve Bank,
in its monthly review of credit and bust
ness conditions, dwells at some length
on the marking down of prices and the
possible effect upon credit. The report
says, in part:
Natural forces are now again assert
ing themselves and prices in future will
develop from natural causes rather than
as an accompaniment of the constant
creation of new purchasing power set in
motion by the necessity of conducting the
war on basis more extensive than cur
rent saving could finance.
Competition, when it is once more
generally re-established, will determine
the level at which prices will finally be-
come stabilized, and the return of COM
petition will assure our gradual but
eventual return to more healthy bust
ness conditions and living costs.
"Just as credit and prices went up
together. they should come down to-
gether, too. During the past month
there has been no decrease in the
loans and investments of the banks
Of the country. but material reduc-
tons should not be expected at pres
ent. Credit requirements are nearly
always at their peak in the autumn,
and besides the normal seasonal de-
mands period of transition to low
er prices like that which we are now
experiencing is one which requires
On the one hand. increasing inven-
tories which result from slowly NOV
ing stocks, and. on the other, can
celed orders and poor collections.
produce a demand for credit not un-
like that of last spring, when the
railway and ocean freight movements
were temporarily congested. Such q
period calls for credit policy on the
part of the banks looking to con-
servation of sound business.
Such additional credits as are re-
qqired are not for further expansion,
but are for the protection of industry
They are to enable business men to
undertake in an orderly manner the
reduction of inventories and the de-
scent to lower price levels. That the
readjustment. which has been quite
radical in many industries, has pro-
ceeded quietly and confidently has
been due in very large part to the
helpful and constructive attitude of
the bankers. who, in spite of the
heavy Withdrawals of their deposits
and the unusual movements of funds,
have not hesitated, if necessary, tc
increase their borrowings from the
federal reserve bank to furnish such
credits for production and distribu-
ton as conditions have required"