Omaha daily bee., 1920-03-02
FINANCIAL

New York, March Try Chicago Tri-
buns-Omaha Bee Leased Wire.)-The Sc
curity market had opportunity to reflect
two stimulating developments today and
the fact that the upward movement of
uted to the adverse credit situation. First,
the railroads passed into private ownership
and the comments OF many operating men
work again in an aggressive fashion which
promised much In the way OF Increased
efficiency Of the carriers. Early In the
court had ruled that the steel corpora
tiop was not to be considered a trust and
therefore not liable to further litigation
VIII When n the % news from Washington arrived
a as gradual reeovers from earlier DEPRESSION,
went went isu Somewhat w ' further sa before the Close
Of business. The last array OF quotations
disclosed. many net gains running from
one to three points among the manufac-
turing and petroleum shares, with the list
irregularly spotted by declines. The rail-
road department, on the other hand. was
dull and uncertain throughout the day Il
might be argued that the upturn which
the rails enjoyed last week had discounted
the transfer Of the roads from government
control. and that 1t would be natural for
spectators and investors to wait Tor a
practical demonstration of results under
the railroad law before adding to their
holdings.
trifling changes Of price.
Wall street comment centered upon the
situation Of credit to far greater extent
eIean b SRpe Of ths heat suppea S the steel
poration. The Federal Reserve banks 8
ability to strengthen Its reserve ratio by
drawing onto itself silver temporarily
ftcient to offset important figures in re-
spect to changes. Of items last week. The
street noted the increase Of loans to mem
ber banks and the loss Of gold. A quota,
tion of 10 per cent for call money for AL
of the days loans and renewals empha-
sized the Impression to be gathered from on
clearing house banks statement that
credit easement was still in the distance.
Time money was as scarce as ever 1t mas
been this year with the longer maturities
showing firmer tendency than last week
in respect to interest rates. When one
considers that the; railroads have much
requirements of. adequate transportation
ands physical upkeep. it Is clear that they
have returned to their stockholders at an
awkward moment Considerable financing
for the carriers has been under discussion
and it Is known that some plans would
be carried out quickly II conditions were
right. The roads have recourse to the re-
volving fund provided for in the new law
and presumably those In most pressing
need for funds will seek loans of the gov
ernment before long.
It was notlceaple IN the discussion Oh t1e
railway future which several executives
presented on Saturday and Sunday thai
the necessity Of patience in viewing the
outlook was stressed. Undoubtedly rail-
way managers consider among their more
difficult problems those surrounding tht
acquisition of new capital and therefore 4
may be assumed that thought Of credit
scarcity had been potent in shaping theil
Sterling exchange moved forward with
spurt which far outdistanced the othel
European exchanges. Sight drafts at So. AN
when business came to an end were 6A
the same time the franc rate advanced
only five points. The only explanation TO,
the upturn Of sterling was that Offering.
Of bills were unusually light for Monday