Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-03-24
GOSSIP OF
THE STREET

Nearly all those who had the task
OF analyzing the United States Steel re-
port for 1920, published yesterday, re-
gnrded that document as a factor OF
the highest importance in connection
with establishing a basis of calculable
value for the securities Of the corpora
ton. It shows 18h per cent earned
on the common stock, and an undivided
surplus, at the end Of December last,
Of over $533, 900 900, or more than the
entire issue of capital stock at par.
The points from the report were
pretty well known in important circles
in Wall street Tuesday, and some OF
those who are persistently bearish In
their market position said dispatches
over wires controlled by them referring
to the record made in the report as an
clent history, perhaps meaning that it
referred to conditions that have been
passed and that II can have no bear
ing on the situation at present.
This, however, cannot apply to the
statement Of undivided profits. which
still exists, not only 10 the amount
shown In the balance sheet Of December
RI. but must certainly have been added
to in the period that has since inter-
vened. This surplus, in itself, must be
regarded as a steady revenue producer,
especially In view Of the heavy invest
ments Of the corporation in the highest
class Of securities and its steady ap-
propriations for improvements and ex-
pansion.
The Abnormal Money Market
One of the New York financial
writer's. in discussing the monetary
situation, states the abnormal character
OF the money market is recognized, but
IL is part Of the abnormal credit situa-
ton. 1t il possible TO say that, except
for year ago and for actual panic
years such as 1907, 1893 and 1878, the
present rates for money on call and
time are the highest quoted in March
for half q century. ...
But this Is no more remarkable than
the fact that the Bank Of England 9
present Z per cent discount rate, which
has now been kept unchanged for nearly
twelve months, is also at level never
established in that institutions history
for a century past except in the face Of
a great English or American financial
panic.
Perhaps the simplest explanation Of
such q phenomenon Is that the waste of
real capital has never been greater than
in the recent war and that the erces-
sively heavy after-wa taxation is
handicapping fresh accumulation Of
capital.
Brighter In Spots
The business situation, according to
the testimony of the leading bank Off
cials, is growing much brighter in spots.
Not so much concerning the basic indus
tries, but more among what may be
termed as the contributing or accessory
industries.
The head Of concern producing q
widely used household article dropped in
to chat with the presidentsof one of the
larger downtown banks yesterday.
During his conversation he asserted
that in December the plant was virtu-
ally shut down, with hardly an order in
sight. In January the business done
was six times greater than November.
The volume in February was nearly
double that of the preceding month,
while indications for the present month
point to the banner one In the history
of the concern, which has only been in
existence about five years.
"Our new plant was turned over to
us in December, four months behind the
promised time" he said, ''and at q
cost of $500 900 in excess of our origi-
nal estimate. With the up to- date ma =
chinery installed and labor. saving de-
vices we are turning out 439 machines
a day with an average force of 1876 men.
against $50 machines with 2S5 men be-
fore we opened the new plant"
Better Steel Construction Demand
Included in some Of the favorable fea :
lures noted in the steel industry in the
past week were somewhat better buying
for construction and in some slight
measure reinstating of automobile
manufacturers contracts. The spring
demand has not become apparent and
the market seems to be reconciling it.