Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-02-04
GOSSIP OF
THE STREET

year.
This is indicated by the increased
borrowing of stocks in the loan crowd,
the borrowing showing a steady increase
day after day in spite of the fact that
call money Is in such urgent demand,
a factor that ordinarily tends to liquida-
tion and permits covering on O large
scale at low levels.
Many Of the reports about bullish de-
velopments were doubted in speculative
circles, including statements about large
sales of copper and improvement in
various lines OF industry. Some of those
who are active on the bear side insist
that. the strength in North Pacific Is
an influence in holding the market
stendy and in causing the rally. They
thought that when denials of reported
Northern Pacific developments are made
that this stock will recede and the
market be without It's supporting in
flucnce.
Much is said about the fact that
nearly all the loans of call money are
made at per cent and that the banks
were required to provide funds again
| to meet requirements.
Outside of these speculative circles
the situation Is unchanged, the most
| important interests on the Street ap-
pcaring perfectly confident about the
maintenance of values and Of an upward
movement being in prospect, and the
results Of recent trading is pointed out
as indicating that most power ror the
| time IL cXcrted by those who are al
| ready large holders Of securities and
are perfectly willing to add to their
holdings without regard to the rate that
| may be charged for banking accommo-
| dation.
In speaking about United States
StCnl nj thpcp Uhn
| persistent buyers all through the period
of market unsettlement late last year
| said that the trading situation in United
States Steel has essentially changed be-
| cause of the greater part OF that stock
| having been withdrawn from the Street,
| leaving only small amount in brokers
| hands available for trading purposes.
| Similar statements are made about
many other stocks prominent in the In =
dustriial group, among them being Bald D. I.
| win Locomotive and Republic Iron &
Steel and it is insisted that quick assets
of many Of these companies justify their
holding far higher position in the
market. u
The foreign exchange situation Is also
| on many other stocks, including some
specialties. that have for a time been
subjected to concerted bear attacks. In
some quarters there Is n change in re-
gard to Sears. Roebuck & Co., which
! II said to have been heavily oversold and
to be in q position at the present time
for a sharp upward movement.
The foreign exchange situation also
regarded as favorable for renewed in.
dustrial activity and attention IS called
to the fact that. in spite of the friction
over German reparations, exchange
rates to virtually all quarters Of the
globe have made marked Improvement
Years Forecast by An Economist
A forecast of economic events for thu
yenr, written by Arthur :. Dewing, o.
the Department of Economies, Harvard
University. appears in the Corn, EX'
change. issued by the Corn EXCHANGE
National Bank. The following excerpts
will be of interest to the financial com
munity.
The probable course of interest rate
during 1921 is. perhaps, the most per
picking problem OF all. Changes in in
tercst rates are felt on three distinc
levels. There Is the rate for surplu
bank funds accumulating in the met
ropolitan centers, The index for thi
|. is the rate on call money. There i
the rate at which open market CONNER
cial pnper is discounted. And there /
the Weld on well secured taxable bonds
The latter may vary within small limits
according to the fancies OF investors Di'
will. in rough averages, fuctuate i
accordance with the accumulations Il
the savings fund OF the communit
available for permanent longtime in
vcstmcnt.
It is probable that callmoney rate
will decline to an average of about
per cent during the first part of tn
wear. During the last half of the yea
cail money rates may range even lowe
. II may happen that the rates on th'
type Of loan may even drop below.
pcr cent after the crop moving perio
Of the autumn. This general resuI
will be brought about by the gradut
hut steady accumulation Of funds i
interior banks, coupled tn universe
Quiet of productive enterprise. Conse
ouently bank funds from interior point
will collect at the metropolitan centers
The first and most direct effect OF thi
accumulation will be the decline in cal
ates Immediately thereafter the quote
: rates on eligible commercial paper wi
fall.
Funds Available for Investment
, The most perplcxing and perhap
most interesting problem il the cours
90 ;n+orest ratrg presented by long tim