San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-02-18
STOCK MARKET
CONTINUES AN
UNABATEDR|SE
Advance Featured by In
creased Volume Of
Business.
COMMODITY ISSUES UP
Federal Reserve Loans.
Show a Large De-
crease.
COMMODITY ISSUES UP
By STUART p. WEST.

New York, Feb 17.-The two out
standing features of the past week
have been the continued advance and
expansion in the volume of business
on the stock exchange and the ST.
multaneous rise in commodity prices.
In both of these movements specula-
ton has played a conspicuous part,
although in the case of some OF the
commodity increases, the rise has
been due TO real inability of output
10 keep pace with current de-
mand.
The situation is not without its
hint of danger, to the extent that
prices have advanced as the result of
speculation. But while there is some
fear that ultimately present COndi-
tons may result in another period of
Initiation. the danger point has not as
yet been reached.
Federal Reserve Loans Decrease.
The best evidence of this is the COM
parison of the federal reserve posi-
ton as il is now and as it was three
years ago. At the height Of the Wall
street boom of 1919, the federal re-
serve institutions were carrying loans
secured by government bonds in the
enormous total of 81 $4,000, coo. The
same loan account stands now at
S42S, 100000.
This particular set OF rediscounts
covers Wall street loans more especi-
ally and the figures therefore may be
accented as a fairly reliable measure
of the extent to which the present
speculation has imposed a strain upon
bank resources compared with what II
did in 1919-2O.
RediseOunts Also Of.
There is the same contrast when ii
comes TO comparing the loan account
originating with commercial trans
actions. At the extreme OF the in
flatiOnary era of 1920, this item
stood at S1.G16.O0O.OOO. The latest
statement fixed it az only S224,IUO,-
900. These figures speak for them
selves in their answer to the question
whether the present movements IN
business and the security markets have
80 fer involved any serious pull upon
the credit facilities Of the country.
But il was an incident, not with
out its warning, that the reserve
ratio in the week ending February
IA. dropped from - TO IJ.3 per cent
and that the principal cause was an
increase Of So, 100000 in discount
This was a reflection Of Wall street
operations and. coinciding as it did
with a slight advance in call money
rates. showed that the speculative eX-
pansion Of the last few weeks was
beginning TO have at least some eff
fleet unon the money market.
May Check Market Campaign.
1t is not easy to set limits upon a
stock exchange campaign such as is
row under way The check usually
comes in one Of four ways. First,
something bad may happen in the
outside situation that will turn the
prevalent confidence" into a sudden
desire TO sell. Second. the money
market might shut down by making it
more difficult to obtain extension Of
credit in speculative operations.
Third, the authorities may get to-
sether and force houses that are
deemed to be carrying too many
stocks to reduce their commitments.
Fourth, the purely technical side of
1his-an upward movement, often cul-
inmates for no other reason than that
the Wall street syndicates and what
are known as the "inside interests. "
have succeeded in distributing their
holdings TO the speculative public.
Outside News Not Menacing.
So far as now can be seen moth
tng is pending in the outside news, nor
is there much likelihood of the money
market Tightening TO an extent that
would discourage speculative enter.
prise. The end of the advancing move
ment is much more apt to come in
one or the other Of the last two ways
suggested-that is either through the
decision of the banks and exchange
heads that certain loan accounts have
become too large. or else because the
pools have rid themselves Of enough
stocks to make it an object to with
draw support and bring about a good.
sized reaction.
Good Export Movement Needed.
The influence in the direction Of in.
flation both of stock exchange values
and commodity prices is the huge gold
stock accumulated within the last six
years. These gold reserves in the fed
aeral reserve system have risen frOr
S2j0000.O00 in the early part a
1915 TO over $4,000. 900 900. They are
81 LOCO. 100000 more than they were il
1920 when the advance in prices wa,
at its height
Therefore the best thing that couli
idUpeU NOuHl DE II Eoll PADoTL move
ment Of sufficient dimensions TO d
away with what is an unhealthy sur
plus. and n constant temptation p
Over-pxtension Of credit. But goI,
exports in any large way are out n
fhe question with the exchange rate
the wav they are. As matter n
fact. we are still adding 70 the COL
supply each month. In January i'm
'norts of gold exceeded pxnorts h
S2I 400 600 and Cor the seven month
ended Januarr 81 tho imnort exccs
was noarlv S15nOOn nOO
Ruhr Outcome Still Unsettled
Another week brings tho outcome n
the economic sfru"clp in thp Ruhr n
nearer nor no ensipr IN nrpdict On
IF the remarkable features has hcp
The recovery in the German mar
10 the highest Of the wear dpsnitn Nh
continued huge outnut Of narnr nofc'
This has commonly boon attributed +
artificial mca sures ~ sunn0rt on III
part Of the German Reichsbank. Blu