THE SITUATION ON THE STOCK MARKETS.
In spite of the fact that prices of securities on the New York Stock Exchange remain amazingly and persistently high. there are increasing misgivings among responsible financiers concerning the credit position. So conservative a banker as Charles S. McCain, President of the National Part Bank, in a public speech points out that of six billion odd dollars in call loans now outstanding only $2,500,000,000 were provided by the bankers, while s3,500m00m00 were furnished by others such as business men and corporations. Just as surely, said Mr. McCain, as any particular business needs for normal use funds now lent on call, these moneys are bound to be with- drawn from the market. Mr. McCain added, " I see no way for call loans to be reduced materially except by a reduction in the price of stocks, which will have to come about either by a drastic decline or by a slow decline." This is certainly frank language from a responsible banker. The position of the Federal Reserve Board in its conservative effort to restrict the use of excessive credit in the stock market has been materi- ally strengthened by the formal endorsement of the Board's policy by the U.S. Chamber of Commerce.