Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-09
BANKS MORE FREE
IN SECURITY LOANS
Investors in Stocks Active in
New York Market as
Credit Expands.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, February S.-The de-
cided improvement in attitude through
out the investing community which has
been evident for some little time past
continues, says James B. Clews, and
has given the market at recent sessions
a more genuine tone of improvement
than it has been able to show at any
time since the late panic. Already re-
flex results of this condition of affairs
are making themselves felt throughout
the country among dealers and pro-
ducers who are inclined to get their
point of view in large degree from the
financial market.
In the opinion of a good many bust
ness men, the tendencies to curtail-
ment and encouragement which showed
themselves at the time of the panic
were effectually Offset, or neutralized,
by the courageous policy of financial
and other sterilization which then
followed. In the same way, the current
improvement of market conditions Is
leading the way toward greater activity
in business than could otherwise have
been expected, and is bringing about
a restoration Of trade on a large scale.
Investors Are Active.
Reliable estimates for the month of
January are now available and show
that in the aggregate a total of about
in this market. Although current fig
ures for member bank condition show
that there has been continuing ten
dency on the part of some banks to-
ward the liquidation of investments, 1t
is also true that loans on securities
have moderately increased at banks
that are in strong reserve condition, so
that the net amount of credit supplied
during the month has definitely en-
larged.
The situation thus presents hopeful
aspect from the point of view of new
domestic flotations. while at the same
time there has been fresh indication
of favorable consideration of new for
eign issues. This has encouraged eX-
port trade interests who believe that
the restoration of strong market for
foreign securities in New York Is dis
tinctly essential to the maintenance
of our foreign shipments upon the
satisfactory basis of 1929. In spite of
downward tendencies in wheat, cotton
and other staple prices, the chairman
hold to the opinion that there will be
no change in the loan policy of that
organization, its effort being made to
endeavor to maintain values at or near
their present levels as long as is prac-
ticable.
Market Review and Outlook.
With investment recovery thus we'll
under way, it may be confidently ex-
pected that a similar revival of specu-
lative activity will not be far off not
withstanding the slightly downward
tendency of the loan account during
the past few weeks. Heavy selling of
distress" stock which has occasionally
taken place, largely for bank account,
has been well absorbed and the ability
of the best issues to recover and even to
move to new high levels Is good evidence
of the fact that the market is now
headed upward. That being the case,
far-sighted buyers, who are able to pur-
chase with a view to holding for a rea-
sonable time, are more and more gen.
orally completing their purchasing pro-
grams and expect to operate under
them as opportunities offer. Delay in
following their example and in map
ping out policies may easily lead to the
missing of valuable opportunities at or
around current leveles, as the present
situation unqueStionably holds out
many inducements to the buying
public.