Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-04-03
PRICE DROP limited
IN NF|NANCE WORLD
Change in Character Of Exports
and Other Factors May Bring
Gradual Recession

- rNoW IOrh, April O.-Ihe new YORK
Suns financial review of the week says !:
80 lar as the securities markets were
concerned the week in Wall street end
ed Thursday afternoon. The Topping
off of Friday and Saturday in Difference
to the closing of the Lenten, season,
coinciding with the financial operations
attendant upon the rounding out of the
first quarter of the year, cast its re-
fiection before, as it were, and served
to rob the four sessions of both initia
tive and significance.
Those who had business to do did it
with an eye to adjustment Of accounts
against the extended recess and not pri-
marily with view of making fresh
commitments based on current news
developments. The professional trad
ers only affected interest in what was
going on on the floor of the exchange.
Price movements were variable through =
| out, but the tendency was constructive.
There was mo real weakness In any
quarter and some issues and groups
displayed strength. ....
Sentiment was quite generally bullish,
although there was little disposition to
act upon 1t. The financing obligations
| of April i kept the money situation
tight. The market for time funds was
nominal at the hitherto prevailing high
| rates. The renewal rate for call loans
| adhered to the per cent level, the
abbreviated week closing at IL per cent,
at which figure demand for accommo :
dation was met on several occasions.
| Gold to the approximate amount of
10000, 600 was received from Great
Britain. Cabled advices from London
stated that further shipments were
| forthcoming. What the scope of the
| mo m xril1 ha
but that England and France were
determined to get an early start in
making provision for meeting the ma :
turity Of the Anglo French loan matur-
ing next October was confirmed by the
steps already taken.
Whether designed at this time tc
bolster the exchanges or not, such wa,
the immediate effect, sterling sight
drafts, after drop at the beginning ot
| the week Of some ten cents from tht
high level of last week, recovering Q
substantial part Of the loss. The othel
leading exchanges showed similar
tendency to stiffen. The detailed fig
ures of our foreign trade for Februar,
were Of more than usual interest il
that connection. They disclosed, on tn,
whole, an Improvement with respect t
the trade balance. Imports iron
L
comparing with $50 ,O20 ,O7S year ago
For the eight months period ended will
February, European exports to tn
United States totaled 1872, ,26S, ! q
against $1S7 $50 ,052 in the same perio,
of the previous year.
The United Kingdom, France, Italy
Belgium and the Netherlands were +
the fore in contributing to this result
While there was an increase in tn
aggregate of this country's exports +
Europe of about 0,500, 900, the de
crease in outgoing shipments to France
Italy and Belgium far more than offse
that gain. The most prominent tier
of gain was in that Of consignments t
, Germany, which mounted up to SIS,
sos ,S07 against nothing in February O
slight, something short of $4,000, ,OOO
Breadstuffs exported to all divisions fe
off S12. 600, 900, and meat products som
S3S, 200, 900. The big jump was /
cotton, which nearly doubled; that
to say, S135, $50. .127, as compared wit
S73, 1922 with the showing for tn
. eight months not far short. Export
, of crude materials for manufacturin
! were S175 ,O36, ,405 against $102,314,
21O, and of manufactures for furthe
, use in manufacturing SIT ,S31 SO
against S71, ,O56,,341. Manufacture
ready for consumption were S232, 2,O15,
900 against $205, ,730, ,701. As for i'm
ports of materials to be used in manu-
!. featuring and of manufactures for con
! sumption in the month both item
,, were more than double those of Feb
ruary, 1913.
These figures speak eloquently Of I'll
, trend of our foreign trade and give n
little encouragement with respect 10 tt
contention of one of the leading bank
ers that the credit situation depends o
the extent to which trade in article
for immediate consumption give way
: trade in. commodities which will hel
/. Europe to find herself industrially.
has also a very direct bearing on II
/ level OF prices, both here and abroa'
Whether the apex Of high prices M
u beep reached is q moot question still
r bulletin of the Federal Reser,
: BOARD. based on nation wide repor
, from federal reserve officials, publisht
: In the middle of the week, states th'
the era of "extravagance and recKle
e buying" is nearing an end.
{ The board holds the view that con
!. sumers will not experience, relief un
+ til present stocks are absorbed IN VII
tuoily all lines. Manufacturers, how
a ever, are RItuuuhy So"ihb w 49, ~
;. lief that the peak has been reached an
n that a gradual recession should be looh
ed for. This belief carries considerab
Significance. 1t is psychological fat
tor which tends to reconcile those WI
u have things to sell to lower schedu
L and at the same time to impart
y, the buyer more discriminating pu'
Il chasing and price instinct. To say tn
70 there is less extravaganza and less reel
20 less buying is another way of sayiI
lie that the buying public is .revoltir
'e against the idea that any price ask
r, must be paid without question, that
,r Is useless to discriminate or to def
g. buying because next week or the ne
after that prices are likely to be highe
- IL this change of attitude foreshadoV
!, A gradual and orderly recession in con
a modities prices it will be well for bo
,e the consumer and the industrial inte
i ests, but if the slump in prices al
~ consequently in business should be viz
r lent, business depression must pei
force ensue.
VIIUuH