New-York tribune., 1921-12-12

nificant event. In terms of security
without extraordinary significance.
Railroad shares have declined mod
erately but persistently for about ten
business days since the directors Of
the Chicago, Burlington & Quincy an
nounced their plans for an extra divi-
dend disbursement. This favorable
news was the signal for profit taking,
and a reaction from the earlier rise
followed
Industrial stocks on the other hand.
responding mainly to the stimuli of
speculative cliques in quest of higher
prices, climbed imperceptibly during a
week Of irregularity and, toward the
latter half, of curtailed volume. At
the end of the week the average of in
dustral stocks was at the highest
level since May.
The prospect Of constructive results
ensuing from the proposed interna-
tional conference on European finances
has made Americans holding bills in
foreign currencies reluctant to toss
them into the market at prevailing
quotations. The lightness of offerings
was conducive to higher quotations,
and sterling exchange, at SAILS for
cables, was quoted at the highest level
since the spring of 1919, when the arti-
fetal support which kept the pound
pegged around s4.76 was removed.
The tentative settlement of the Irish
question, too, tremendously helped
sentiment The ebb and flow Of ster-
ling bills, measured in value by Amer
lean dollars. has been unprecedented
in the last two and half years. The
low point was touched in February,
1920, when sterling was worth $3.lS in
New York. On January the lowest
quotation Of this year, 1854 for ster-
I ling cables, prevailed.
Nineteen hundred and twenty-five,
toward which the eyes Of business and
finance are already directed, is likely to
witness the consummation of some OF
the merger plans which are now in their
early stages. The financial atmosphere
is surcharged with reports of consolida-
tions in important industries. such as
steel, petroleum, coal, copper and rail-
roads If half of the contemplated eco
nomic unions take place, the country is
on the verge of one Of the greatest peri
~ in hicto
sponsorship Of railroad mergers by the
Interstate Commerce Commission. which
received authorization from Congress
to do so in the transportation act of
1920, constitutes a factor which has en-
couraged private initiative to think
more boldly along this line. The fear
of Federal interference has diminished
Consultations are broadly of two
kinds. The first integrates the various
steps in the industrial process, enabling
the merged corporation itself to take
care Of the entire industrial cycle from
the development of the raw material
into the finished product. The other is
the mere wedding of competing units
of an industry. The former type of
merger is the easier to justify on sound
economic lines The acid test of the
desirablity from the standpoint Of the
general good of any proposed consol-
dation Is whether it will enable more
economical production and distribu-
tion and whether the saving will be
passed on to consumers. Such con-
soidatons are likely to receive encour-
agement With labor battling eagerly
or just and liberal wage and with
buyers on the other hand clamoring
for low prices, business organizations
are beset with pressing problems and
ndustrial changes, that make for eff
cheney and economy, are essential Mer-
gers, on the other hand, that would
create monopolies for the purpose OF
artifcially bolstering prices, are likely
to be viewed with suspicion, and such
plans are likely to be still born. The
consolidation programs most conspicu-
ously under discussion at present, how
ever, are in highly competitive indus
tries, where competition would survive
the realignment of units.
The approach Of the end of the year