New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-05-16

the armlstice, spectators pursued TIL
the technical position" and other p
Despite the stimulus that the attain
ment of a working basis in the matter
of the war BIZ; Is expected to give to
world business, quotations Of securities
! fuctuated toward lower levels all
through the week. Coincident with the
nominal elimination Of the main thorn
in the side Of Europe, the stock mar
ket, insensitive to developments abroad,
went through the phases Of conven-
tional reaction after the spirited up
turn in prices during the preceding
! fortnight.
Although the recession in stock val
ues was general, affecting the rails as
well as the industrials. the downward
! movement derived impetus from the
special weakness OF the independent
steels and the motor shares. The SELL
ing of the steels was based upon the
fear that the depression in the indus
try might necessitate cutting of divi-
bends, and that OF the motors reflected
not only natural speculative reaction
after the early spring rise, but also
the fact that sales slumped in recent
weeks. The decrease in demand for
cars was caused partly by unfavorable
weather following The warm March
and by the new wave Of price cutting
which vitiated the confidence of con-
sumers in prevailing levels. BY July
/ most Of the guaranteed nrice
agreements will have expired and the
artificial barriers to sterilization be
removed.
The foreign exchange market. which
is the most sensitive of all the mar
kets to European Developments. re-
sponded to the settlement of the repa-
rations question. For sthe first time
in year sterling exchange CROSSED the
81 mark and French and Belgian francs,
lire and marks likewise were firm. The
Improvement in the value of foreign
currency, measured in terms of dol
lars, helped the Old World in two
ways. First, the rise enhances the
purchasing power of foreign money
when converted into dollars. Then
there is the psychological benefit.
Americans, impressed by the lowering
of the discount of the foreign coun-
tries, are likely to gain fresh conf
dence in the solvency of European ma
tons and therefore be more willing TO
sell merchandise on credit
The Baldwin Locomotive Works NAV
be regarded as an approximate barom
eter Of the whole equipment industry.
For this reason the letter sent by the
president of the company to the finan-
cial editor of The Tribune in reply to
series Of questions. is of unusual
Importance as an index of conditions.
With their answers, the questions
follow:
Q.-To what extent are railroads
buying? A-Bare necessities.
Q.-What percentage Of the capac-
lty OF your plants is working? A
Twenty-Five per cent
Q--How long would untitled or
ders keep it working? A.-Several
months.
Q.-What proportion of your pres
ent business originates from domes-
tic buying? A.-Seventy per cent.
Q.-What proportion from foreign?
A.--Thirty per cent.
Q.-To what extent has German
competition been felt, and to what
extent is it likely to increase in the
next few years? Avery little.
Q-What is the outlook for new
domestic and foreign business? A
plendid-nothing but outlook.
Q-To what extent have equipment
makers sold to customers on credit
during the last year? About
ffty-ffty.
Q.-What has been the effect of
the reduction in steel prices on the
equipment industry? A.--No effect.
Q.-What developments would slim
ulate the buying Of equipment? A.
Cheap money.
Q.-What Is the status Of labor in
your industry? A.--Excellent.
Q.-How do wages compare with
conditions at the peak and in 1918?
| A--Favorably.
| The foregoing precise statement sug-
gssts cross section of the industry.
It is more impressive than out Of date
records or mere forecasts Of what is
coming.
borrowers in che Wall Street calf
Price 'I'