New-York tribune., 1921-04-04

In domestic industry events moyeo
without much unity. but in many trades
the seasonal Improvement that spring
brings is visible. The various Federal
Reserve banks reported last week in
their monthly reviews a betterment In
tho demand for retail merchandise. and
evidence Of more cheerful tone In
to accumulate.
Moreover, on the human side, unem
ployment Is relieved to some extent
as tho seasonal wants Of agriculture
for workers begin to be felt. This
reviving tendency gives the stock mar
ket steadtness, despite tho efforts of
bear traders. But the impulses for a
new sustained rise were lacking last
week. The market looks ahead rather
than to contemporary Developments.
Perhaps spectators lack confidence as
to developments in the Summer and fall.
Norman H. Davis, who arranged the
SIC, 100000 900 loans to the Allies and
neutral countries during the war on
behalf Of the United States Treasury,
made suggestive remark regarding
the campaign to cancel the Allied
debt, HIS WAS dealing with a special
phase Of the subject. He examined
specifically the argument that the
Allies would have to pay their debt
ultimately in goods and that permit
ting them to do so would adversely af-
feet competitive American industries.
Mr.. Davis concluded that the debtor rs
would not have to pay back in goods,
but that America could invest it's "a
worable balance each year in venture g
! overseas. Without such investme en- t
the problem OF foreign trade cannot
be solved, ne rightly said. To cancel
the debt to the Treasury would not of
itself clarity. the situation, as the Old
World owes $4,000, 100000 to $1,000
100000 to private American investors.
Mr.. Davis made this contribution to
the discussions in an address before
the Bond Club. He gave the invest
ment bankers business idea worth
more vigorous application TO their pro-
grams.
Money continues in more plentiful
supply at this center, the call losn rate
fluctuations show. Last week renewals
we're arranged on 61a per cent basis
and loans were made at per cent in
,<ot Io
lent against Stock Exchange collateral
at per cent for sixty days. Toward
the end Of the week the heavy demands
incidental to the end of the quarter
disbursements for corporate and other
purposes tended to tighten things up
temporarily, but this stringency soon
passed. The call mone7 market Is ex
tremely sensitive to demands made
upon it snd almost Immediately regis
ters the effect Of pressure from the in
terror or extraordinary demands. The
outstanding stock market loan account
to-day is estimated At $500, 100000 to
100000, 900, of which all but about 20
per cent is in the form of demand or
loans callable on notice.
Both the weekly statements Of tho
New York bank and of the whole Fed
eral Reserve system revealed further
striking progress toward credit de-
f1ation. Increasing gold holdings and
shrinking rediscounts are strengthen
ing the credit base The New York
bank, drawing funds from the rest of
the country, is in The midst Of a period
Of especially rapid Improvement and is
gaining at more accelerated pace
than the entire system.
Sentiment is Frightening in the in
vestment market. After lull Of sew
eral weeks which allowed the market
TO digest sbnormally large offerings of
the first two months OF the year. new
financing is being arranged. Several
new underwritings Of fair amount. one
in PARTICULAR involving .he sale Of 500
100000 Of ffteen-year per cent bonds
of an oil company, wers quickly ab-
sorbed, showing that, with the tax paw
N Ty