New-York tribune., 1921-02-14

disastrous phases was Lfle INK DetWt
First, nearly 90 per cent Of the
copper producers, united for export
purposes in the Copper Export Asso-
citation, Inc, relieved themselves Of the
depressing effect of having surplus
of 400 100000 pounds Of unsold metal
dangling over the market place. By
commercial banks from whom they
had borrowed funds with which to
finance the holding Of this immense
supply of many million dollars of
frozen loans. This double accomplish
ment WAS performed by the sale to
investors OF 100000 Of per cent
notes, running from one to four years
Purchasers OF securities stepped into
the breach to unburden the copper
producers and the banks. To WOO
funds from savers for this purpose, it
was necessary to offer three kinds of
security. First, 400,o0o,Ooo pounds Of
copper as collateral; second, the credit
Of the Copper Export Association:
third, the guaranty of interest and
principal, in various proportions, by
individual copper producing COM
panfes. AS piece OF financing the
loan was q novelty.
Tho second effort to prevent de-
cation from becoming destructive WAS
associated with the financial difficult
ties in Colombia, which originated
from the sharp slump in the coffee
market. The shrinkagc Of market
values caused the suspension Of paw
ment by five large New York commits
sion houses engaged in the Colombian
trade. To break the financial dead
lock, powerful group Of New York
banks late last week formed "The
Colombian Acceptance Agreement Of
January, 1921" and will finance the
shipments OF coffee from Colombians
who are debtors to New York mer-
chants. This program has been de-
signed to help the South Americans
pay their debts to the local dealers,
| and in turn will allow them TO meet
their own obligations.
OF course, the commission mer-
chants were pressed more than the
more puissant copper companies, but
the two programs are an expression
of the disbelief of bankers OF the
slogan: "Defate TO the line; let the
chips fall where they may"
With an approach to q decision on
reparations at hand, the time has come
for creditor nations to think more
realistically about programs for the
extension OF loans to emaciated coun-
tries. The new tendency is to inouire
Row the money will be spent; 70 make
! sure that dollars lent will be kept
alive by being placed in productive
Uses. The whole question Of revivifv-
ing hard-pressed nations invites the
forging of new economic instruments.
There Will have to be an element of
novelty to any practicable plan for
meeting the present unprecedented d
situation. If financing could be ar
/ A"Ab bNdI El4CtC NOuiQ DC niue Calk OF
overproduction in essential industries
for an indefinitely long period.
/ In Judging price movements at the
Stock Exchange over a long period
one could safely ignore last weeks
fluctuations because they were without
meaning. The intensified dullness was
an expression OF the ebbing of out
side public interest in the ewing of
quotations. In narrow markets, which
represented scarcely more than the
attempt Of professional traders to
give the market continuity and to
make small profits ont Of quick turns
industrials tended slightly higher, gain
i1g moderately on four of the five
days Of trading before the double
holiday Rail stocks, on the other
hand, dropped trife lower.
Wall Street money rates last week
reflected a slight relaxation, as rs-
newal rates dropped from TO
7 per cent. At the Stock Exchange
the rate was 7 per cent on new
offerings Of call money, while in the