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

NNihihut W tuih hbOuI NNNiih l
ing prices and have much to say about |
tno. newly created stringeucy In the
money market, and also the opposition
III Berlin to the reparations agreement,
us reason for unsettled conditions in
inc financial situation. Outside of this
element views in regard to the security
trading situation continue confident and
Inc more important interests on the
street insist that the manner in which
the market has acted indicate that the
general security trading situation is one
OF pronounced strength, and that i'm
portant declines are not to be expected.
In some Of these circles 1t is thought
attention attracted to prevailing money
conditions might be an incentive for
pear attacks at intervals, but 1t has
pecn shown that a good demand is to
DC expected on any decline, and that,
where important changes occur in the
near future, they will be TO higher
prices.
There are many who think that even
II favorable developments should occur
IN the general situation the market will
be held in check until after pending .po-
litlcal developments are written into
the record, and on that account the be-
lief prevails in some quarters that lit
tic in the way Of upward movements
can be expected until after the change
OF administration on March 4.
Banking Opinion On Money Market
The Federal Reserve Bank of Phila-
delphia has sent out to something more
than hundred banking Institutions an
inquiry comprising categorical questions
as to banking opinion on tho future OF
the money market from tho point OF
view of each bank. The result, as pub
bulletin for the close of January indi-
Gates n curiously interesting divergence
of opinion. In particular, 1t shows that
banking judgment is very far from un-
| animous rs to whether we are past the
period of maximum borrowing or
| whether easier money is in sight. even
four or five months from now. Further
more, the banks do not agree. as to
whether the recent restriction OF credit
has been wise or unwisc.
To the question, "Do You think eAsier
money and credit will be likely II oh,
tain within the next six months|
eighty -four banks answered Yes and
twenty four No. To tho question, lis
the volume of frozen credits with you
still too high" thirty seven banks an
swered Yes and sixty six No. That 'tht
peak Of heavy borrowing has beer
reached and possibly passed" was the
opinion of eighty seven banks. but
twenty answered that in their judgment
it had not yet been reached.
Asked whether I'm your judgment
has the control over credit exercised BY
the banks during the last six months
piled that il had been wise, but four
teen thought that it had not. II wa'
asked whether the banks had noted any
increase in tho use of trade acceptance:
during the last year, to which question
seventy-two banks replied Yes and thir'
ty-four No. The final question, sl'
much unemployment noticeable in youl
community" elected somewhat surpris.
ing answers. Out Of los banks which
replied. thirty seven answered No, thu
remaining seventy one agreeing tha
unemployment was clearly perccptiblc.
Silver Outlook In 1921
In view Of the continued slump il
the price of silver bullion--the quota
tion in New York yesterday havin,
been the lowest since December 10
1920, and in London since November
~, 1916--thc following on the outlool
of the market for the current year from
Samuel Montagu & Co., the Londol
bullion dealers, will prove Of interest:
''The world as whole would hav'
good reason 10 welcome the return o
the price of silver TO prc-war level
The persistent advance in the price q
this metal has much to do with tn,
increase in the prices Of commodities
the reason being that the Allies had t.
depend so largely upon the products o
the East, chiefly from India. will
whom the world balance of trade ha
always been unless the monsoon
proved failure-heavily in her favor
Wheat, rice and beans, jutc, cotton
hides and skins figure largely in tn
useful goods which come from India ant
China. 1t was the rise in the cost o
such items ns these which stimulated
that of other commodities in the mar
kcts Of the world
'"Thc total output for 1920 is 10
expected TO show much change, bu
tho apportionnent among the contrib
uting countries will be different. Th
United States will record Considerabl,
less, and Canada will show Il furthe
shrinkage. These reduced contribution
will be offset by an increase from Mex
ico and from Burma. The last name,
mines, worked under British auspices
used to be exploited by Chinese. In
similar fashion, Prof. Saycc deduce
from recent discoveries that Babylonial
firms worked the silver mines Of ASH
Minor centuries before the days o
Abraham.
"a good deal of misconception out
side India as to the rupee problem
arises from overlooking the fact tha
the natives Of India regard the ques
ton as one of bullion rather than cur
rency, and choose to set their owl
ratio between currency composed o
gold and Of silver. In other words, til
two precious metals are looked upol
as commodities, the imprints of di
being but an official certificate AS t.
the contents. The Indian Goverumen
during the year clearly iudorsed tn
native point Of view by removing tn
prohibition against Vsing gold and silvc
coin otherwise than as currency. thu
coufcrrng privilege not enjoyed il
the United Kingdom. Gold and sivc
coins do not change hands in India t.
anything Lilo the extent that they do il
western countries. They are obviOusl,