Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-11-09
MARKET FIRM
DESPITE LACK
OF ADJUSTMENT
Monitor Sees Some Cause for
Caution in Relations of
Trade.
Special TO Indiana Daily Times
and Philadelphia Public Ledger.
n AInNIT0R

and Philadelphia Public Ledger.
BY MONITOR.
NEW YORK, Nov. Elm spite Of the
rather moderate volume of trading dis
closed by daily stock exchange trans
actions recently, the market has shown
unmistakable firmness throughout most
OF the general list; weakness has been
exhibited only in rare instances; and
positive buoyancy has made its appear.
ance in an encouraging number Of cases.
Investment demand continues almost IN
abated. Tax-exempt securities are far
above their levels of six months ago.
and sound investment bonds have ad-
vanced materially.
Nevertheless, the situation as a whole
Is greatly confused and there is feeling
that caution should be used in follow
ing advances. 1t should be understood
that this is far different from the pessi-
mism so rampant a year ago, when dis
couragement expressed itself in confident
short selling and wholesale liquidation.
Then It was felt that a debacle was i'm
pending. Now there is merely a feeling
that recovery may be delayed to a dis
appointing extent. In November last
year grave fears were expressed regard
ing financial stability. Now We merely
hear expressions Of doubt as to the eco
nomic progress toward reha bilitation.
The gain in the Federal reserve ratio N
the last six months from forty-two TO
seTenty-one shows that all danger Of
financial collapse in this country has
passed.
AIALADJUsTMENT
IN EARNING POWER
Despite our financial improvement,
however, the situation contains many
elements calculated to cause concern.
There is mal-adjustment between the
earning power Of various groups such,
for example, as the drivers Of New York
milk wagons receiving an average OF S43
per week, or more than 5000 per year,
while the owner Of a fair sized dairy
farm probably is operating at a loss.
Agriculture is not receiving new dollar
for an old one. Farm laborers IN the
South, mostly negroes, 1t is true, are
en- the verge Of starvation at a time
when Industrial labor is prating about
the necessity of preserving standards OF
living.
This dislocation also exists between
the United States and the countries OF
Europe. It has been aggregated by
falling exchange and promises to be ac-
eentuated still further by tariff barriers.
The buying power of Europe should not
be restricted by legislative attempts TO
raise up tariff walls.
Consequently, students OF business con-
dltions, who consider the question Of
the free flow Of products between pro-
ducing groups and producing nations,
expect no permanent improvement until
maI-adjustment has been corrected to
considerable extent.
RECUPERATIYE POWER
OF L. S. IN EVIDENCE.
This encouragement has been Offset to
a certain degree by the undoubted evil
siefice of reeUperative power in the United
States. Notwithstanding high wages and
high material costs, building operations
are being conducted throughout the coun-
try on a large scale. Certain liquidated
industries are giving unmistakatle evil
dences of revival-textiles, oil, copper,
and to a moderate extent the steels-
1t is a fairly safe guess that the trend
Of business resentment IN the next few
weeks will be governed largely by leg
islative tendencies, including the taxa
tion program in Congress, and by the
shaping OF policies at the disarmament
conference in WashingtOn.-Copyrig
1921, by Public Ledger Company. ---'77-----