Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-06-13

sOn VINO possesses ready money Chn pui
chase seasoned bonds and stocks right
now at a more attractive figure than
are available more than a few times IN
a generation. Despite the deluge OF
dividend reductions and dividend omis.
sions, the current quotations for most
Of the seasoned stocks are unquestion-
ably unreasonably low. Industrial com
panies have not been able to liduidate
their inventories against which their
additional financing last fan and again
this spring was founded. They find
themselves little better off than they
were before. No profits TO pay divi-
dends and bank clamorings for the re-
payment Of promised loans. This.
however, is n temporary condition and
as the country's business will not stand
still, there are greater possibilities OF
things getting better than becoming
worse in the next six months"
West & Co. - 1.-THE situation con-
tinues very complex. Business i'm.
provement has been very small and
spotty, better demand in silks, tex
tiles, copper and leather being Offset by
further slaCkening in steel, oil and
sugar.
"A similar condition exists among
the banks. Those which have been
fortunate enough to have paper repre-
senting industries, which have had some
recovery, have been able to reduce loans
and rediscounts and find. themselves in
a satisfactory condition; others have
found II difficult to effect any great re
ductions in loans. and despite the iqui-
dation which has occurred in the last
twelve months loans of the clearing
house banks of New York City stock
last Friday at 81 $50. 265 900, de-
crease of $579, ,OS3 900 from 1920, but
still 122 per cent of deposits.
"It has been the opinion Of many in
fuential bankers, however, that the
gradual liquidation of loans was pro-
ceeding at a fast enough rate, and the
reports Of the Federal Reserve Board
have confirmed this opinion, but during
the week past our foreign trade diff
culties attracted unusual attention, re-
sulting in rather pessimistic predic-
tions.
THAT loss Of confidence should have
resulted and been reflected first In the
security market was, Of course. certain
| and prices have fallen quite severely,
especially in those instances where div-
dend adjustments were made or arc
in prospect, and where trade conditions
| are admittedly very poor.
Hecker & CO.-"WhiIe important
| companies continue to pass and reduce
| dividends as they are doing daily, there
| will be but little buying power. We
still think, however, the decline is being
| overdone and IL continued much further
will meet support from banking inter
ests. When II does come, as it will
any moment. It will find the list very
much oversold by an exceptionally large
| short interest.
II. r. Bacfimap & Co. Judging
from the strength displayed by the
Liverpool market during the last several
days, Europe is taking more op-
timistic view of trade conditions. Re
cent advices indicate that both the coal
and spinners' strikes may be settled
within the next ten days. We are near
ing the period where the crop Is an
nually. killed The Texas rainfall for
May this year was only 10 inches
against 5.36 last year and 5.34 inche!
two years ago. In fact, it was abou
the smallest on record. surely the light
est for more than twelve years past
Boil weevil. on account of the mild win
ter. is reported unusually active an
plentiful over all infected districts
These factors. together with the smal
amount of fertilizer used and reduce
acreage. are expected to offer ampl
material for the crop killers to work on
and in due course the bulls are eXpectc
, TO use them for all they are worth The
! if favored with a revival in trade
prices may quite properly be expected I
3 advance materially. In the meantim
? We continue to favor the policy of buy
: ing on all moderate declines.
! THE TRADER.