Show 1 Credit Situation 7 T ff J T 1 I Still Holds Back Backi V i Business Progress Promotions and Automobile Industry Will Till Be Lack of Funds Interest Among g First Hit by High lEgh E Is Taking Savings to By Percy ti il M. M Cropper Herald Financial Editor w ITH the cre credit situation still taut anc and getting tight tighter r and ami business throughout the country still suffering suffering- from the effects of the switchmen's switch switch- pens men's cn's strike tho week shows but little progress o over or r a week ago ngo The credit situation continues to be he the chief topic in all nIl business lines and tho the crowing owing demand for accommodations for the wool clip live st stock ck men and is certain to cause an casing up to the immense amount of funds that have been diverted to luxuries Chief among the industries that will probably have their funds held beld down to the tho limit aro are the tho auto m men and the 11 Ml 1 1 1 nYC Tho seriousness of tho railroad tlc tlc- up ip Is just beginning beginning- to show up I in omo somo quarters and It has hns hurt busl- busl mess In lii tho the east cast more than in n the w est st st. In many lines of Industry arc still beIng taken for man many months month In Advance but there Is an Indication that hat 1 tho reservoir of or supply Is fast filling up again and summer will see seo seen seep n p n lagging In some of the Industries One of the developments of the week I was tho tim loss of deposits In banks throughout tho the country Ea Eastern writ writ- Irs have been trIn trying to Lo explain It as heln being due to the tho strike and other disturbances dis dis- but the more Immediate ate ase Is probably duo due to the fact tact that bonds have have- reached a point pointre v here re they return almost G C per cent just as hl high h a d degree Sc C of c so- so as a n savings account me ule names Da 1 wUl be compelled to make mako deposits I more snore attractive than they aro Just now Jf they the wish to get savings l S accounts Stocks are attracting but little at attention at- at at present on account of the Wish Ih Interest that Is being offered b by bonds Already there thero are arc a great Issues that offer returns of or 7 1 and S per cent while Is still some fome talk of if bonds bond being put out at 9 per Ier cent cont Tho The high rate l Is 13 reaching a u point where It will soon bo be danger danger- The rhe monthly review Issued by bp Barclays Barclay's Bar lIar clays clay's Bank Limited of ot London En EnrI Eng Eng- 1 I land and makes the following comments on business conditions Apart from the question of at prices I. I fr cr C every effort should bo be made to avoid I unnecessary b by economy econom In governmental and private expenditure by turning over each unit of credit Ha ns often otten and as quickly quick as possible possible- better transport facilities would be bc here here hen and h by the tho banks dis- dis between essential and non non- essentIal loans This the banks tiro tre doing but unless prices fall It II will be I Necessary for them to use uso even more dras rasto discrimination In granting S ac- ac and even so so despite o er every effort to economize credit the tho alternative ma may ultimately lie between prejudicing production and broadening tho basis of or credit M Idea Idral Solution Obviously Ob the thc Ideal solution would I ie be e provided by hy gradually falling prices 3 but ut Instead of ot falling fallinS' prices havo have risen and ami certain o of tho the causes responsible sible Ible for this movement are aro outside Jur control Tho Index number for 3 last was vas while that for J J 1920 was The Tho reason for lor this increase la Is rather obscure and difficult to locate with Ith certainty but butine ine cn primary factor Is la found round in tho the com com- of foreign buyers who attach moro more importance to obtaining goods than they do to the price they thoy pa pay Tor lor them In other words so long as as- as Coincident with a Q great shortage of ot the Commodities the the printing presses of ot some some- continental countries continue to to turn out notes without limit tho the principal principal principal prin prin- cipal anxiety of or their traders will be beto lo to o. o obtain goods the number of pounds they have e to pay for tor them or the tho number number number num- num ber of or units of currency currency charged for fory y reach ach pound becomes a matter of ot comparatively com corn small Importance because causa r the great Increase in tho the volume of ot aper mOle money makes people careless as asto to prices It has bas also aleo to be remembered that that at this this' attitude Is not confined to Those countries to whom cost Is a mater mat- mat ler er of secondary Importance while paper money is being manufactured without restriction but that It ex- ex fends ends to such countries as the United Whose States States whoso economic positions are sound and whose whoso wealth has haR crown enormously since the war the Tho paper money countries compete for goods and Ind force up prices all over tho world go o that even countries countries' with Ith called so-called gold prices prices' are really suffering from the ho effects of European inflation inflation of ef effects which do o not keep them from rom fc buying bec because d of their great wealth The competition Is amongst the buy- buy lt it It Is sided one and people possessing possessing posses posses- sing commodities for sale ale can largely their own price i IK World orld Question The price question Is Js largely lanely a a world question and there thero Is thus a to the extent to which deflation and price reduction In this country oan an bo be effected by our own efforts Ve have e done our part part possibly possibly moro more ihan our part and It Is for Cor the print press countries to help the genral gen- gen Cral ral position position to to help us to help them them them- by y Imposing drastic taxation an and re restricting re- re their noto note Issues Issue t 4 f The Tho National City bank of or New York ins the tho following relative c to foreign n rho Tho decision 0 of r the national for for- trade council to hold its l 1920 O meeting on the Pacific coast and to devote the major part of tho conven- conven ions ion's time to matters dealing with trade in Pacific countries and tho the Orient generally generall Is a timely recognition tr f. f the importance of Pacific trade trado and tb bf the tho part It must play In the future development of bf f American business It must be recognized that Europe will ln In the nature of things regain res-aln a great deal of its Us former trade with l de leks-de- eloped parts of the world as soon as asT T ri again becomes reconstructed In Tn the nations of oC that continent Signs that aro arc significant of this trend are visible and show that In spite ot of ro tho the demoralization of or the war years ears the manufacturers of or Europe are vcr very alive to the renewal of or their for- for trado trade affiliations Condition CondItions In Orient Orienta I a Conditions In tho the Orient however lear ear r a different complexion That part tot the globe has experienced an eco eco- lc awakening of which the tho world t largo large has lilt little litto 0 comprehension as asyet yet Tot but which will ill undoubtedly pIa play a a. most Important part in the readjustment readjust readjust- ment of ot American foreign trado trade to war post conditions Tho The awakening now so 20 evident ix IS In such nations an as China the tho Straits Settlements British I and d a few others t l rl was brought tJ t uy a 01 OL ac on out too tao et of the movement camo came from tho increase In the value alue of silver BUver the favorite commodity and medium ut crt ox- ox chango change of ot these countries c To moro more moro than half haU of or the worlds world's population silver r is 18 the life liCe blood of ot trade Although principally found In tho hc United States Canada and Mexico It t eventually finds Its way to the Orient whore where It performs double duty ns a commodity and md a currency In its first role it affords the tho business businessmen men nen of the Orient their speculative medium to a more complete extent than thans I Hs s afforded by any community or in the tho western world and in Its second role It gives the means of ot hoarding wealth and affords a medium Df pf exchange without which trade trado be bell between be- be ll tween the tho Orient and the Occident would come to a standstill r The rise in the tho value alue of oC silver since p the low figure prevailing in 1915 which Vau Waa the lowest in more than two ten cen- en- en tunes to the quotations ne now prevailing f iaH ha Introduced Into Chinese and Ori- Ori p r life a a. factor of ot unexampled tren b. b No single event i In recent 4 history tory has eo so closely effected the actual da- da day to o-dap o lives lIves' of oC the SOO- SOO t human beings or of the continent Asia as th the increase In I To this vast ast horde with vilh living conditions conditions condi condi- Lions far below anything ever conceived conceived con con- in Europe or America a trebling of or wages and prices and an Insistent world demand for native products has brou brought ht about a n regeneration that Isone isone Is Isone one of ot the most profound and Ion farI far- far reaching reaching- results of the tho world conflict I il on Silver r To peoples whose e cr every commercial transaction Is handled In silver or In a I currency based on silver It Is not difficult dif difficult dif dl- I to comprehend the remarkable I character of tho the aftermath of or a triple I II I Increase in the value of or that thal metal I IFor For Instance silvers silver's average price inthe In Inthe the United States In 1915 was cents I ncr nor ounce compared with an for 1918 1915 of f cents per ounce ana am ama anaa a fluctuating value that In 1919 reached per ounce An In Interesting interesting Interest interest- erest- erest I ing corollary and sidelight on the same matter Is contained In a report from Consul General Thomas Sammons at Shanghai In which the tho rates are given Riven f en orthe official conversion of ot the tho Chinese Chin Chin- ese eso tad Into American cur cur- rency roncy The value of ot the tho tad In United States dollars dollar as fL fixed od b by bythe bytho tho the Chinese marItimes customs and anu and based on tho average bankers bankers' sight draft drat exchange on Now York for Cor theten theten the theten ten years ears ending in 1918 was as fol fol- fol lows In 1 1909 09 In 1910 06 In 1911 05 in 1912 0 74 In 1913 07 07 I In 1914 1911 In 1915 In In 1917 and in 1918 1 G. G While an opinion on the future price of silver would bo be hazardous It Is Undoubtedly undoubtedly un un- unI I true truo that many competent of ot silver to ob observers ers er expect the price remain at a comparatively high point for several years cars If IC tho the approximate quotations now prevailing pre should continue continue continue con con- ear the tho effect on for somo years Chinese trade and prosperity would bea ben be a n very favorable one Building Activities Kardos oS Co of New York say ay Recent reports of building activities show a marked Increase throughout the he country countr The Thc n. ern average e gain for tor new operations Is Is' approximately a month an and April figures ures should show how new construction In progress valued valued val valued val val- at more moro than Despite the continuation or ot high prices for materials and more wa os demanded by labor work worle Is apparently app continuing without without Interference The Tho demand for space particularly In buildings build build- ings of ot the tho larger type Is so great creat that hat It will probably be bo five years before before be- be fore the Industry returns to normal Relative to International affairs Henry lenry Clews Chews Co of ot New ew York say sayA A cloud on the financial horizon is however seen see In the Unfavorable unfavorable un- un favorable reports concerning conditions In n Japan These These- aro ano of more moro importance anco tanco than might mis-ht bo be thought thouc-ht at first sight duo due to the fact that Japan Isnow is isnow isnow now practically tho the key power In economic economic eco ceo affairs in tho east and has as assumed as- as sum cd a position of ot great grent and growing I importance since the early days of the war Thero There has been overtrading nail and profiteering in Japan accompanied by exaggerated prices and the social un unrest un- un root rest which accompanies these theBe condi- condi lons Whether the difficulties will spread beyond the Japanese financial domain Is however by no means cen- cen tam aln Japan is well wen provided with specie and arid I Is In a stronger position by reason of ot heavy repurchases repurchases chases of ot her own securities durin during the war var than ever before This should give e herS ler a avery aver very d decided I ed resisting po power r. r Nevertheless e it is 15 natural that ellS ellS- conditions there should cause anxiety on this side o of the tho water and ande be e reflected to some extent In American markets At Al the same sarno time timo the tho effort to o shorten ba batik bank k accommodation and re reduce reduce re- re duce inflation in Great Britain has been reflected in proposals for mucH higher taxation as well as In the heavier rates paid for fol current government So bor- bor and for discounts at the tho Bank of ot England En Iland All these factors influence conditions in our own wn market and make mako It moro more than ever apparent tha that the he United States States' will have bave to furnish capital as aK generously and extensively as possible The natural tendency of ot thIs his situation Is to enhance investment tn values of ot money mone In our market Public Aroused The Bache Review of Now New NewYork York says say The public Is note nor yet et organized but I It t is It showed Its teeth In inthe the he railroad strike It refused to be I starved It put itself Into harness I to run and it that fuel and food by motor truck could be furnished In sufficient amount I to o avoid dang danger r. r This s spirit of ot pub pub- I lie ic defense defenso In case of emergencies is iso isto to o be or organized Jd The chamber of commerce com corn ComI merce of ot the tho state of ot New V York at nt a I special meeting appointed a n committee commit commit- tee teo on public welfare to organize ors the tho people to protect pr the public Interest In n case caso of of future strikes Three hundred hundred hun hun- dred and fifty prominent business men tl pledged pledge themselves to support the pl plan n. n The Tho committee has In charge the perfecting perfecting per per- of ot a plan whereby the public may by bp volunteer service aid In maintaining maintaining main main- taming tho the transportation of ot passengers passengers gers gels food and fuel fuel and In assisting assisting- tho the duly constituted authorities In preserving ln law and ord order r. r Aiding Movement Some of ot the tho larger lar or shops are aro aiding tho the movement for lower prices by cutting cutting- out priced high and extravagant extravagant gant int goods s The Allied Shoo Shoe Trade association association as as- sedation of ot Maryland recognizes the principle and furnishes p. p pamphlet with each pair of ot shoes Bold sold old by Its members In which it declares that It It ItIs itis Is K possible for tor any apy person to bo be correctly cor cor- a and d comfortably shod at a a. reasonable reas reas- reasonable price It says When values alues are leaping upward It Is Is' Is always the newest t st styles that are aro made from the highest cost materials and every good I shoo shoe man has practical good looking I shoes on his shelves at old prices Tho time Lime has arrived when the |