The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-07-18

tions. IT usually Is followed by I'm
provement In other bonds and then In,
stocks.
Thereafter industry and business In
general openly exhibit the betterment
anticipated by the longest-headed II
nanciers and other far-sighted tnves-
tors.
The difficulties now being encoun-
tered BY daring bearfsh spectators
when they seek to buy the extensive
lines of stocks they have sold snort
suggest that there may be lively nap
penings on the New York Stock Es'
change very shortly. Many stocks are
30 cheap that when the turn does coa'@
II is likely to be very pronounced.
Lower Discount Rates.
Happily, intimations have alreafy
been received from the highest sources
that further lowering of discount ana
interest rates is favored.
There is no, adequate reason why
this should not be done. The coun.
try's stock of gold has reached the
unprecedented total OF 1920. oeo,0oO.
Note circulation, loans and other obli-
cations have been very substantially
reduced.
The Federal Reserve hanks report
gold resources, after setting aside IS
per cent against deposits, OF no less
than 70 per cent, the position today
being stronger than at any time IN
the last three years.
Under such circumstances and in
view Of the overwhelmingly important
need for exerting every effort to
check the constantly rising tide OF I'M
employment, it behooves those
charged with the responsibility of
handling. the peoples money-the
bankersAto encourage rather than
handicap those who are willing to
express courage In the form OF &C
ton.
That the warning sounded to bank
ers did not appeal to business men
only but even TO bankers, Is demon
strated by the receipt OF this tercxram
from Ex-Governor Stokes, OF Ne~
Jersey, who Is president OF the Me-
chanics' National Bank OF Trenton.
N. j.:
Hearty congratulations on your
warning to bankers. You are right.
Much of the business depression Is
due to destructive liquidation forced
by the controlling banking element.
II the banks would aid in constructive
uplift and encourage business activ-
ity, instead of causing losses by com.
pelliag sales in an unwilling market.
business would revive.
In the highest financial circles enor-
nous importance 10 attached to sew
eral recent developments. both ma
tional and international
The response to President Harding 3
invitation to other leading powers to
confer on disarmament Ia hailed with
the deepest satisfaction. because II
is realized that only through cur
tailed military and naval expendi-
lures can the taxation burdens of
many countries be curtailed ~ much
as necessity demands.
The prospects Of settling the cen
turtles old Irish feud are also causing
great relief.
The businesslike way Germany 10
handling her PREPARATION payments and
restoring political and industrial order
Is interpreted as enormously impor-
tant.
Our own Governments announced
decision to distribute some $500 900.
900 to the railroads during the cur.
rent year is viewed as likely to help
materially in restarting the wheels
Of industry.
Distinctly more cheerful reports are
coming to hand concerning both the
mental and the financial condition of
our agricultural population.
And the action of the investment
market and the money market is. of
course, having a beneficial influence.
Copyright by B. C. Forbes)