Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-05-21
CREDIT EASIER THAN
SINCE BOOM IN WAR
Numerous Influences al Work
10 Prevent Reaction on
Exchange.
HARDING srEECI STIMULATES
Frozen Credits Have Been ThorouEh>
Iy ThnNcd Out, Except In Isolated
'nscs and Busincss Is on stable
BASIS.
ny Walter Brown,


money furnishes the opportunity for
active speculation in the stock mar
hcr there are numerous other In
nnenccs at work To prevent Il rcnc-
ZION. Underlying conditions provide
an excellent foundation FOR "a strong
market and II anything more were
needed the Presidents address to the
United states Chamber OF CUmmcrC.
at Washington on Thursday. ia which
lao declared TIA" country TO b" on the
eve OF the greatest industrial! revival
IL had ever experienced gave that
added impetus.
Tho money market reflects con
di,ons OF credit that have not been
Witnessed FOR n long time. Can
money has been In such plentiful sun
Dly that the market could not alb
forb tin. offerings, with the resul,
that IL has overlooked into the time
money market which Is nuw lower
'hun any time since August 1917.
can money has been down as low
Az per cent. with bankers' accept
anccs OF l-2 per cent. COMMERCIAL
paper rs still on a 4l-2 per cent
basis.
situation F1rchecn.
This situation was foresoen months
hso and accounts for the refu.ul a,
the Federal Resorvo banks TO reduce
the r"diacount rates below the a..
per cent hah!s for fear that IL would
lead TO further imitation. II is n
hihc"nt mat the banks arc holding
feniSc"unt paper now only to the
extent OF {jG5.00O,0O0 as compared
Win S,e2i,Oe0. 900 IL year ago Tn.
demand Tor money for commercial
operations due To the revival in trade
IL not reflected In this statement.
largely because funds are b.inK re-
'"Ntr"h through the liquidation or
froz"n loans. The Atlantic District.
Tor example. reports money more
plentiful than in years. with the
credit situation easier than at am
Nm" since the war boom nrosnerity
FROZEN credits have been ,horoughIv
''a""" OUT except in isolated cases
$50" business II on more stable
liSs than 1T any time since before
dcnatiou
In" immediate enec, on FRIDAY va,
"h"rr upturn In the industries led
NN United States steel common
Ni'ish crossed par and touched lOiI-s
nm" Inc cheers OF the brokers Other
'"HHlr!d!s shared in the advance
"'h" IN IL spectacular way. but the
movement OF this king OF the indus,
trihls "aa assumed to he az ,, al
Ways has been. Tho barometer Of In
'HhTh' activity. The advance has
"'en s"r"shadowed for moro than n
ices for the United states steel
e. nrroratipn has such valuab,. rrn,.,
''N mat u is almost an cmpir. I'm
self and temporary d"pressions such
"s that from which wa are now
emerging cannon seriously an.rt ,b,.
"efar" OF the organization az a
whole
Steel tn Forefront
H''"I i.'S occupied not only the at
i'nii"h "i the market, but That or the
PUBIC 'arouEh"u; tn" week. Whil..
"Wrh'i"" was concentrated upon
what was called tn" seven-company
merger, which included the l.acIia-
wanna steel Company. tn, MIdy,i..
Ste'i ana ordnance Comapny. the
YOUNGSTOWN Sheet and Tub, r,n-
nany, the Republic Iron and steel
company, tn" INLAND Steel Conpnuy
mo steel and Tube COMPANY Of
America. and The Hricr iiilI steel
'"r'pauy along came Charles VI.
S"h""h. chairman OF the bethlehem
S;"rl CORPORATION. and secured CON
'r"' ~ Tic I.ackawaua. The erect
~ ihiS wa to cause boom in both
nc iicthleHcm and Iackawanna ana
TIA" independent steel companies gen
orally Then came tn. report, sub
Nc1uenily vigorously denied. that Mr.
S'H""h !hi"nu"tl To annex the VI i'd
vale steel and Ordnance COMPANY
The denial has been taken with m.
provcrbal grain % salt, and thare are
az least surface Indications tina, tn.
big steel mcm are conducting a con
lost for tho control OF the indcpcn
dent organizations.
Not MonOpoly.
In the meantime. there ara CON
Gressi"nal ana other Investigations
into these mergers and proposed mer-
gers. on the assumption that they
may he violating the Federal and
state antitrust laws. although mos,
Of this is FOR political effect. The
supreme Court Of the United states
has already decided that tho United
states steel Corporation is not a mo-
n"poIy. II controls 10 per cent OF tho
steel lingo, capacity Of the country.
leaving 30 per cent in the hands OF
independent companies. This was di-
Nidcd so as 10 give the si-company
merger loo per cent. tho Bcthlcltciu-
l.ackawanna merger 1903 per cent
aud all other independents 2S52 nor
cont II the MIdvaic we're acquired
by the licthclchcin. that combination
ana the remaining nvc-cOmpanv
proposition would virtually chang.
places ON the basis OF production.
If the big company Is not a mo-
nopo!y, ii is difficult TO see how
these smaller mergers can be at
tackled successfully.