Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-05

the better. IL Ia felt that the public will
be slow TO entertain fresh commitments.
IL is freely predicted that exchange
rates will show a decided trend down
ward until such time as the general
situation has assumed more normal pro-
portions. Much stress Is laid on the
Importance Of the proposed Fordney
tariff bill. which, IL passed, in the opin-
ion OF foreign exchange experts, will
prove disastrous from trade point of
view and In turn will act as most
depressing influence in the foreign ex.
change markets.
In all commercial and financial cir
cles with international relations, con.
sternation prevails over what they rea.
son will be the result Of the Fordney
tariff bill on commerce. They fear, IN
the first place. a disappearance Of the
improved credit which had been cstab-
lished in England and In the Continent
as direct result Of what. in their
minds, Is n direct embargo against i'm
ports Of foreign goods in this country.
II is not alone importers. however, wlo
look on this measure as an influence thai
will check international commerce. but
exporters also were acutely alarmed
over the situation. as they fear that, IL
imports cannot be brought in, exports
cannot go out.
The direct influence. however. Of tho
measure must be shown in the market
for foreign exchange. which has been
pressed for sale all through last week
but finding few buyers because credits
In foreign countries cannot be regarded
"a desirable unless the goods OF those
foreign countries can create a balance
by finding market here.
Railroad Stocks Becoming More Active
Railroad stocks were more active and
tended toward higher quotations near
the end Of last week on the theory that
the railroad situation is in line for con.
siderable bettcrment within n compare
lively short time. II is expected that
the railroads of the country will bc
placed in n much moro favorable fnan.
cial position through a funding opera.
tion Of their present debt to the United
States Government.
There ere other factors in connection
with tho railroads Of prime importance.
including the unusually large savings
that will result from the reduction In
wages. together with the large number
of men that have been dropped from the
forces recruited under Government con-
troll and operation, large percentage
OF which were not needed. The ex-
cess baggage handed down by the Gov
connection necessarily had TO be climi-
nated. because it was evident that the
efficiency Of the carriers had been de-
stroyed to n considerable extent through
Government operations.
Railroad securities Mt the moment are
regarded in an entirely different light
from few years ago, and the general
expectation in the best informed quar-
tors is that there will be n greater de-
gree Of confidence in the railroad situa-
tion from now on than was possible TO
obtain under the conditions operative
during the last four or five years.
Following the announcement last
week that some Of the independent steel
| companies propose to reduce prices. a.
we'll as wages. there was some irregu-
larity shown in the steel issues as a
whole. II is felt in we'll Informed cir
cleS that the steel stocks, ms yet have
not fully reflected the true conditions
obtaining in the trade and that even
tually much lower quotations will have
been established for this group Of stocks
This, however. will depend somewhat
on the rapidity with which general busi
ness conditions are revived and brought
back to more normal basis than q,
present obtains. At the moment, build
ing operations are nearly Mt n stand
still because of the excessively high cos,
involved in this line Of industry. Wage'
Of employees engaged in the building in
dustry have not been reduced and labor
leaders are understood TO be strongly
recommending that no reductions be &C
cepted and therefore. the lull in new
crections all over the country. Thi'
element in the situation has an I'm
portant bearing on the securities mar
! kets because there are so many lines o.
commercial pursuit which are involved
!; in the iron and steel business.
TIE TRADER