Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-11
AWAIT NEW MOVES
TO BOLSTER FOREIGN CREDIT
Further Constructive Trade News Is Be-
lieved Near at Hand, Says Survey
by Brokerage House.

among foreign lenders and shippers
Inevitably, these measures must be fol-
lowed by such others as become needful
to make the relief granted through the
war debt holiday effective in German
rehabilitation. The important point In
the whole matter is that the attention
not only of the allied governments but
Of the Washington authorities as well
has now been focused upon the situa-
ton; and the task of applying remedial
measures is fully in hand. The attitude
of the other European governments out
side Germany has indicated a more
hopeful disposition in respect to the
adjustment of the entire foreign credit
problem than at any time thus far
Restoration of foreign trade will neces-
state freer foreign advances of credit
and capital-a fact now generally real
lied here as well as abroad. The ques-
ton of safe and conservative extension
Of them Is under advisement. and it will
be only matter of time when a con-
clusion will be arrived at.
Gold and Credit Position
hand. the stock of precious metals in
the United States today is larger than
ever before, while the work already done
in clearing up the credit position has
carried matters far toward final adjust
ment. Moderate increase in security
loans at member banks and in brokers
loans due to the heavier trading of the
past few weeks has been wholesome. for
the total Of brokers loans had already
fallen far below what must be consid-
cred a normal level for present invest
ment conditions. The bank amalgama-
lions in the Middle West have evidently
1rnflnrAd q Cte nd nj
state Of things in that part OF the
country, and there has been improve
ment of banking outlook elsewhere.
Although recent measures with re-
spect to- foreign credits have not
Sufflced to check the inward gold
movement. the undesirable shifting of
excess funds to this country is likely
to be effectively slowed down by the
rectiflcation of the German situation
and the suspension of the so-called
flight Of capital" from that country.
Generally speaking. the adjustment of
reserves to amounts of credit outstand-
ing bids fair to reach a normal rela-
tionship within a reasonable period,
while the available supplies of lending
power in this country will be ample
for long period to come.
Market Review and Outlook.
Reactionary tendencies in the market
since the announcement of the Presi-
dents plan are largely the result of
profittaking sales based on the thought
that the good news being GU. it had
been discontinued for the time being
This Is usually the case. There has
been no unfavorable change. either in
the investment or in the business stu
alton, to warrant any great setback.
The public at large, throughout the
country. has not vet realized the con-
structive nature OF what is in progress.
and has not vet come into the invest
ment field in full strength. Irregularity
is likely to continue while matters of
such large moment as are now in
process of discussion are still unsettled.
but the character of the market has
greatly altered for the better and
marked improvement is anticipated as
the season advances It is worth while
to repeat what has been said hereto
fore in these advices-that sound
shares can now be bought with a mini
mum of risk and that the future of
the market contains constructive ele-
ments which are bound TO bring higher
prices in the long run. especially as
liquidat ton has been largely completed
and the great bulk of stocks is in strong
hands.