Perth Amboy evening news., 1921-03-26
WEEKL Y FINANCIAL REVIEW

sion and that there is ground to ex-
pect an improving condition of rev.
enue from this time onward.
Business Conditions
Although it is difficult to afford
exact evidence for any opinion on
the subject it would seem that there
is a slight but important improve
ment in the trend of business condi-
tions. Announcement that the ma
rine employees of the roads in New
York harbor have accepted a wage
cut tends to the belief that the lab
oring classes see the necessity of
wage reduction il business is to get
started again. especially now that
the cost of living is steadily growing
less. During the past week there
has continued to be distinctly bet
ter tendency in textiles than during
the weeks Immediately preceding
while there has also been percepti-
BILE advance in the demand for auto
mobiles. shoes and leather and other
manufactures in common use. There
has been a general prevalence of
favorable weather conditions in the
agricultural regions with good acre
age devoted to the various products
but with a wholesome disposition in
the cotton and other regions to re-
was cultivated during the season of
1920. The carryover from last year
is shown by current figures to be
even larger in cotton and grain than
had been expected, and this will
tend to hold down agricultural
prices for months to come. Little
aid is expected by intelligent OBJ
servers from the proposal to put
through congress a tariff bill tanta-
mount to an embargo on staple farm
products. Unemployment although
still extensive in many industries is
Welding to some extent i'll those
lines where demand is reviving while
retail demand has on the whole
maintained itself Unexpectedly well.
Bank Rates and Reserves
While there has been a definite
reduction in the charge for call
money during the week by about II
of ] per cent, the general conditions
in the market have continued not
far from the same as heretofore.
The reserve ratio of the federal re-
serve system rose slightly, reaching
81 per cent as against 43.5 year
ago. This is a favorable develop
ment and is strengthened by the
continuous decline in the amount of
funds required for interreserve bank
rediscounting. The latter is now
down to a low level and the fair in
ference to be drawn from the situa-
ton is that there has been distinct
growth in the ability of the several
parts of the country to provide for
their own current necessities. mean
while exchange despite the discour-
aging German situation has main
tained itself firmly. The expectation
of many British observers that cut
in the rates at the Bank of England
will be initiated early in the coming
month continues to be stated in
positive terms.
Market Review and Outlook
The week has been a period of
larger trading but with good de-
mand for a number of the special
ties which have tended to work to-
ward higher levels. Investment sup
port from the outside public has
been somewhat lacking and while
the undertone is still encouraging II
can hardly be expected that the gen.
eral public will show sufficient cour-
age TO make purchases on liberal
scale until more progress has been
made in settling the wage question
of the railroads and in other direc-
tions. Still the outlook is decidedly
more encouraging, and while the
market at times may display a halt
ing attitude, due to proht taking
! sales. the indications are for higher
levels, based in a great many IN
/ stances on merit.