Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-10-30
ny CrIrARr p WEST

Especial Dispatch TO Morning JOurnan
Copyright 1921 by Albuquerque Journai)
New York, Oct. 29.--Wall street
was never very seriously concerned
over the railroad strike order ana
while relieved at the outcome, IS
inclined to treat it as something
that was quite expected. The price
movement of the last week hasrep-
resented matters of much more
fundamental importance than the
question of whether or not the
railway workers would carry out
their threat to strike. 1t has been
a further expression of confidence
in the business outlook and In the
reality and permanence OF the
change which came over the sit
uation two months ago.
The public has not come back
into the market to any extent. The
principal buying has originated
with men high up in company al
fairs who sold out a long While
ago. resolved not to buy back again
until they were sure that the
period of depression was at an end.
This repurchasing has been going
on all through the share list 1t
has been supplemented by the re-
vival of activities on the part of
the various speculative cliques
But, after all, the speculative elc-
ment in the recent market has
been subordinate to the replace
ment of so-called insiders hold
ings.
Lower Money Rates.
The movement of crops to mar
ket, as is we'll known. has been
earlier this year than usual. In
consequence the financing of tn"
harvests will have been completed
ahead of the customary time. Or
dinarily it is not until the end Of
November that banks in the agri-
cultural sections get through draw
ing from their balances at the re-
serve centers. But this year the
peak of the crop demands already
has been reached. and this being
the case. two developments are in
dictated in the near future-first a
corresponding lowering of money
rates in the open market.
Bond Prices Up.
1t Is plain enough that still
easier conditions are in prospect
and that the markets are getting
ready for them. This is shown by
the course of bond prices which
stand now at the highest OF the
year. The fact that the latest ISSUE
OF treasury certificates was taken
at Ia to 4 IL per cent or fall
of ! per cent under the rate of
last spring, is very significant. II
the banks are ready to accept az
low as IA per cent on their mon
ey in this form of investment, they
soon will be ready to accept a sim
liar reduction in other forms.
On October %, 1920, the total of
bills discounted at the federal re-
serve banks stood at s3049,94S,-
600. On October 20, 1921, this to-
tai was only 81 1911, 900, 900.
At this time last year, federal re-
serve notes outstanding were
1856, 1000, 900. Their present
amount is s2,4OS, 900, 900 while the
reserve ratio has advanced from
42.7 to 70.S per cent. These COM
parsons tell the story of the de-
flation which has occurred and
leave no doubt of its thorough
ness.
Railroad Earnings Improve.
The September railroad figures
have shown as rule some further
slight improvement in gross earn
ings over August, while the net re-
suits have been about the same.
Much is still said about mainte-
nance accounts being skimped, and
that it is only in this way that net
earnings are able to appear so we'll.
The point missed in this criticism
Is that the roads can affori to
appropriate less this year than last
for maintenance purposes. because
they are getting so much more for
their money in the shape Of cheap
err and more efficient labor and
the lower cost of supplies. How
ever, this does not take awav from
the essential problem confront
ing the carriers. They will, of
course at once go ahead and apply
to the labor board for another 10
per cent wage cut. It will he
months before a decision is rem
dered.
In the meantime. the Intersta,"
Commerce commission, actin
upon the principle enunciated in
the decision of a week ago, will
proceed with its rate reductions
and put 1t up to the roads to offse,
these by reducing their costs. The
probability is thus suggested Of 4
considerable interval during which
the companies will be operating
under conditions less advantageous