Salt Lake Telegram | 1921-08-07 | Page 23 | Bankers Losers on Trade Paper

BANKERS LOSERS ON TRADE PAPER NEW TORK YORK Aug C. C Analysis G. Analysis of oC credit of tho the past pILat eighteen months by bythe bytho tho the national credit office contradicted th the I general unfavorable opinion regarding a number r of or concerns concern financing In the open market wl wi one ose affairs affair have ha become more mona or involved ol Of concerns concern each neb with a capital In excess of t which BO sold old lil notes In open market between January uary 1 I 1920 and July 1 I 1921 1321 only 89 U. U or 24 per cent have hlL been compelled ellel to ask indulgence from banks bank These names which comprise but best known firms In la United States aro are clai clu allied a. a 09 as follows Dr Dry Roods goods per cent Foodstuffs per cent I r tires und leather shoes hoes 88 aa per cent Lumber dumber furniture and paper G. G 62 per cent Hardware autos auto 10 per cent Miscellaneous per cent Tho The nine eighty names namn which met tact with difficulties are as follows Year ear Six mo mos moe 1920 Dry goods 1921 S C 11 a Textile mills C 9 b Ii Jobbers and 3 0 o c Retailers I S 6 4 d Cutters 6 C S 9 l S i 8 S I leather oAther and rubber 6 0 o Lumber dc etc 1 3 Hardware ware steel deel autos 4 16 IS l and aid lu luxuries urle Ii 5 While t this Is the largest number of names over ever Involved In any period Of like duration dora dura ion tion factors causing this condition were without precedent and paper names mime as asa asa a whole withstood the tha shock shock- with lower depreciation titan than any other form ot of short term mercantile Of concerns liquidated t f maturity maturity ma ma- dollar for dollar on amount invested invest ed at a time when Inventories were shrinkIng shrinking shrink shrink- ing 40 to CO GO per cent and business In general general gen gen- eral had become demoralized three Fifty of nine eighty concerns In Involved involved in- in have havo paid or will pay cents fn the dollar doliar and It la Is reasonable to suppose sup sup- pose povo from information obtained that the remaining concerns concern will make mako average ad adjustments ad- ad of about 55 per cent Total open market paper sold through note brokers from January 1 1920 until July 1 3 1921 was approximately I and of this thin was liquidated liquid liquId- I atod at par without effort on part of holding hold hold- lag ing banker Only was wai not paid at maturity ma ma- and of tItle thin amount has since or will be liquidated In full leaving only to be adjusted This residue will probably yield dividends of netting a lose lofs to entire banking banking bank bank- ing community during the most critical readjustment period In economic history of about or per cent of total purchased Th The number of these suspensions has sharply diminished each month since February Feb Feb- 1921 Kew financial statements generally enow smaller surplus accounts with decided im improvement Im- Im provement In ratio of quick assets to liabilities while concerns that have havo passed or reduced dividends within a year or so show unusually strong cash