Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-07-05
.CLENS REPORTS
. IMPROVEMENT IN
j. s. BUSINESS
Banking Situation Is In
CreaSingly Strong; There
Are Less Idle Cars; Crop
Outlook Is Good.
nv Henry CIews.)

ment of the British coal strike has
been the outstanding economic
event in foreign affairs during the
past week. Coupled with the sue
cessful payment of Germany's sec
ond instalment of her reparations
bill, brings the total now RENTED
up to a quarter of billion marks,
the effect upon foreign exchange
has been good, although less con-
spicuous than would otherwise
have been the case had not these
events been so fully discounted.
Lord Curzon's address in the house
of commons relative to the concilia-
tory intentions of the British gov
eminent with respect to the man
date question also promises well for
the adjustment of our larger eco
nomie relationships in foreign at
fairs.
A Better Feeling in Business.
Although it would be difficult 20
give positive evidence in support
of the more optimistic opinions eX-
pressed by business men, 1t is fact
that the past week has seen the de-
velopment of a distinctly better
tone in commercial circles. Not on
" is the banking situation increas-
ingly strong but there are less idle
cars on the railroads, and while
general unemployment has not
been relieved conditions In the ag-
ricultural districts are seasonally
better and there is very fair de-
mand at some manufacturing
points, although their number is
| Limited. The crop outlook is prov
ing decidedly satisfactory, average
conditions of all crops being nearly
what 1t was year ago. While tho
yield of cotton will be moderate
only, this is in some respects re-
garded as a beneficial factor in the
situation on account of the large
carryover from last year. Agri-
culture is one industry in which re-
adjustment has reached fairly adj
vanced stage, both labor and food
supplies being lower than at any
period for long time and in many
regions being practically on pre-
war basis. The prices of the man
ufactured goods the farmer must
buy are not as much reduced but
are much more moderate than they
have been. All this makes for a
profitable years output in the
farming districts.
Industrial Conditions.
Improving conditions on the rail-
roads are reflected in rather better
current net earnings. Revision of
freight rates has already progressed
much further than is realized, there
being a serious attempt to get an
L. 4fTz ~. - oh hnf0
on long distance hauls, including
those on staples between the coasts.
This should tend to relieve some of
the CONCESSION or lack of adapta-
ton that has existed for long time
past and ought to help some man
ufacturers who have been suffering
from high expense of transporting
both raw materials and finished
goods Meantime the volume OF
business has held UP well in those
industries which had shown fair
capacity to take a fresh start dur
ing the spring. Only slight season
al reductions have been witnessed
in those cases, while in others there
has been at least some tendency to-
ward actual growth Of business
with a view to the autumn trade
Continued passing of dividends has
been observed during the week
though at a slower rate than here
tofore; but it still remains true, as
often stated in the past that the
number of companies regularly
paying their dividends Is far grea-
ter than the number of those which
. have suspended or cut them. While
the prospect for the midsummer
period is therefore, as often hap
pens, one of comparative dullnes'
there Is fairly general agreement
that the autumn outlook Is hopeful
Financial Outlook.
Much easier call money and far
more abundance has accompanied
the greater activity that has pre-
vailed in the stock market during
the past two weeks. Time money
also has shown the effect of the
easier conditions by yielding some
what in rate, Notwithstanding the
arrival of the mid-year dividend
and interest disbursements made
on the first of July. Exchange has
been unexpectedly strong due to the
hopeful European developments
which have tended to sustain 1t for
some time past owing to the con-
fident belief of operators that they
would take place. Accumulation
of gold has continued in the feder-
al reserve system, but in various
parts of the country there has been
an increase in the volume of bills
held, which shows that the system
is accommodating the community
to a considerably larger extent
than heretofore. These conditions
show that our banking mechanism
is operating smoothly and that 1t is
furnishing normal amounts of as
sistance to legitimate business. The
adoption of the Penrose bill to
permit the treasury department to
fund allied Indebtedness, subject ia
it's general discretion, is expected
at an early date and should finally
dispose of an important matter
which has been overhanging the
international financial market for
a long time.
Market Review and Outlook.
Distinct improvement in activity
in the stock market has been char
acteristic of the week, but there
has been a tendency to price ir-
regularity. The proposed import
duty of 35 cents per barrel on
crude petroleum naturally had a
depressing effect on the shares OF
, companies whose main production
is in Mexico and South American
fields. An impost such as this ad-
ded to the proposed Mexican ex-
! port duty, would of course inter-
fere very greatly with shipments
of oil into this country; in fact
would be almost prohlbitive. Rail-
road shares have been favorably
influenced by the bills understood
t. be in progress at Washington