Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-20
H|GH-CLASS ISSUES
FEATURE OF WEEK
Further Cut in Commodity
Prices Also Big Factor in
Financial World.
BY STUART r. WEST.

Special Dispatch IA The star.
NEW YORK. February 20.-In the
financial situation of the past week
the main feature has heen the
strength of investment issues. One or
two o. the United States Government
loans have sold at top figures and
bids have been raised for the high
class railway mortgages. This has
not conceded with any reduction of
money rates. In fact. the money
market has been working somewhat
higher as the Federal Reserve ratio
has been coming down.
The principal reason for the ad
vance in investment valua lions is that
the supply has heen diminishing.
Savings banks have been large buy
ers. and what between the demand
from banking institutions and the de-
mand from private investors. there
have not been enough high grade
securities to go around.
Stock Movements Splectivp.
II is well accepted fact that the
stock market nowadays seldom moves
as a whole Individual stocks go up
for special reasons at the same Tune
that others so down. This has been
exemplified during the last week. The
steel trade position. for instance. has
not come up to expectations. Neither
has the copper position. Both of these
groups of stocks have therefore been
neither stationary or have gone down
Oil stocks have also reflected some
disappointment, because, with all the
optimism expressed over the oil trade
outlook, it is not much better than
it was three and four months ago.
On the other hand. capital splitlps
n h.
priced induStrials and some of these
stocks have been very strong. The
anthracite coal shares have made a
fair response to the settlement for the
long -draWn-out strike. In the main,
however, stocks have been for sale
whenever the market was strong. The
impression given has been that holders
are in no hurry to sell-that Is, are not
willing to follow prices down-but that
they are willing TO unload on favorable
opportunities.
Francs Again Come Down.
French francs have been coming
down. They have touched the lowest
since the extreme low of March. 1924.
The new French financial program has
not been SatiSfac Glory to the outside
world. 1t still leaves a deficit which
cannot be made up from foreign loans.
The United States will do nothing in
the way of help until France has made
some provision for its war debt.
There appears to be little chance of
Great Britain coming to the rescue and
certainly there is no other nation
which under present conditions would
be willing to lend to the French re-
public. The working out of the French
financial program is going to be one
Of the most interesting features of the
year.
Sterling's Position Firm.
The pound sterling is evidently stab
flied around the oldtime war parity.
Great Britain is more concerned in
holding its present position than In
trying to force gold imports from other
countries.
The latest trade statistics show that
the United States has been selling a
good deal less in the way of staples
and has been buying more raw ma
terials. Imports into this country have
run ahead of exports. The balance is
clearly against the United States. But
the offset comes in the form of re-
payments on war obligations. There is
no disposition TO bring about gold
movement.
Commodities Again Decline.
According to Dun'S Review the COM
mercial price average has gone down
for the fifth week in succession. This
is the most disturbing feature in the
business situation. The volume of pro-
duction continues large, and new or
ders are coming in well. But the trou-
BILE is, as 1t has been for the last six
months, that the fresh business in
many lines is not being booked at sat
isfactory prices.
Consumers are additionally slow
about buying on a falling market and
where quotations are dropping as they
are at present the tendency is for
buyers to get the upper hand. The
ease with which goods can be secured
around present quotations makes for
a policy of purchasing wholly for i'm
mediate needs.
Brokerage Loans Increase.
The latest figures on brokerage
loans show an increase, but not
enough to matter much. Wall Street
has become accust toned to high credit
totals, realizing that these occur as
the result of the new ltstings under
the inclusion in the estimates of the
unsold portions of recent security Of
ferings. 1t is not a sign of imitation.
1t simply indicates that the ordinary
Wall Street requirements are perma-
nently larger.
Six months ago the outlook for re.
duction was assumed to mean that in
vestment capital. which took refuge in
tax-eXempt securities. would be get
ting out of these securities and into