Omaha daily bee., 1921-07-11
Financial
9be Menu pork Gimes.
BY ALEXANDER DANA MOVES


New York, July 10.-Develop-
nents Of the last week, for the most
part, ranged themselves on the con-
structive side and added to the in
creasing confidence which is in evil
dence in nearly every quarter.
The process of readjustment has
not been completed, but at all events
long strides have been made in the
right direction and it is fair to as
sumo that the trend toward improve
ment will become increasingly
strong.
Two factors overshadowed all else
last week, the one a further readjust-
ment of prices in the steel industry,
the other concrete evidence from
Washington that the railroads were
to be placed in a more secure finan-
cial position through the cutting of
red tape and the early establishment
Of a funding plan to be applied to the
debt owed by the railroads to the
government for expenditures on capi-
tai improvements and betterments
during the period of government op-
Grafton. Furthermore, there was inn
provement of substantial propor-
tions in the bond market, as a re-
suit of heavier July reinvestment
demand than had been anticipated.
Stock Market Strong.
The stock market displayed a rallying
power such as has not been witnessed In
many day, and 1t was reassuring to see
tho turn, even though the full measure
o., OF the gains was not maintained. At
tons OF speculatorS for the decline had
been temporarily halts1 and that the low
level OF prices obtaining noted as induce
ment to some investment purchasing on
the part of those inclined to believe bar
gain day had arrived.
Reports from trade eenters while indi-
eating no betterment Of decided proper
tions, did not carry the tone Of pessimism
so prevalent not many weeks ago. In
trade centers there is coming to be dis
position to consider that degree of
stabilization has been obtained in certain
industries, notably thoss which were first
to 60 through the process of severe re-
adjustment, and consequently there is
being built up q potential buying demand
which probably waits only moderate
impetus to make itself felt I'm the coun-
trys market.
Admittedly the present, due to seasonable
conditions. Is a poor point OF the year
from which to view the OUTLOOK, Dut II Is
all the more important IL degree of
Qualification is discernibie on the business
horizon now. 1t proba bly, portends more
than would ordinarily be the case.
Funds for Railroads.
It may be that the impetus to a trade
revival will come from the railroads
themselves through arrangements now be-
Ing undertaken at Washington.
: The funding plan, II 1t goes through as
seems probable, will put the railroads
In funds to the extent of between $780,
90, 600 and $500, 10000. This does not
mean that such . degree Of purchasing
power will lie with the railroads. for
demands upon this money are in the ma
ture Of bills which have been awaiting
payment, In many cases. since the car
riers were returned to private control.
When the settlement of these debts has
been effected, the roads may have no
great amount of surplus left, but GER
tainly they will have established their
purchasing power and railroad buying Is
essential to certain of our industries, not
ably iron and steel i
But the funds which the railroads re-
ceive will do more than aid their own
credit position; they will dissolve frozen
credits" and provide the basis for an |
other turnover of goods by those to whom |
the debts are due. In this way the fund
Ing plan is really Of broader scope than |
appears at first glance.