Evening star., 1921-05-08
by 1. 4. FLEMING.

| hope that the happenings of the hour
may bring some relief to a situation
! that has lasted so long, that all are
tired with it.
But those who are accustomed to
dclve deeply will, unfortunately, still
keep the warning signs floating.
They admit that they have seen the
! encouraging signs, that they believe
! wage adjustment has been helped by
| the general wage reductions insti-
! tutcd by the United States Steel Cor
| poration; they admit that the hlgh
cost of living has fallen materially.
[ that there are signs in some indus
| tries of renewed employment and that
| the various rate reductions by fed
| eral reserve regional banks arg likely
to make credits a little easier. and
they admit the hope and belief of
| the business men of today IN the
| President and his administration.
| Wage readjustment is in Its lnitlai
stages and until this matter has
| reached finality or reasonably near
it the cost of production in various
| lines will vary and make buyers
| chary Of going beyond their imme-
diate needs, the pursuance Of hand
to-mouth policy that does not make
| for good business. and yet a pollcy
! that is warranted by uncertainty.
Collective bargaining is collectively
F.! opposing wage reduction. irrespec,
/ tive of reductions in living costs.
| Wartime costs have no place IN
! peace-time prices
| The wise banker will tell you the
problems of today are not to be SOW,
ed by easier money in the Cnlteo
Estates.
| If it were easier money all over the
world it might be different. If Rus
sia Germany, France and Italy could
be restored by some miracle to the
status before the war recovery might
be made easier. but miracle days are
lover and the nations named have to
come back slowly, with Russia and
lGermany many leagues, perhaps
cons, of years away from normal.
Easier money will play its part. but
it will not be cast for a star part IN
recovery until the great credit cor
operations get under way with their
credits and acceptances to again up
build our foreign trade. until read
ljustments in wages, ETC., enable the
production of goods at lower prices
land the general public becomes con-
vinced that near-low levels have been
lreached; until the policies outlined by
the government of today have been
whipped into shape and in working
order.
Matters of policy and governmental
veal in Europe that should have been
settled while yet the victorious le-
gions were in the field still disturb
the world.
Wall street has been evidencing a
'hetter feeling. stocks and bonds have
advanced very sharply. but it must be
remembered that the New York stock
market was the most thoroughly
liquidated proposition in the United
Estates with the closing of 1920. and
that the losses very generally taken
were severe enough to encourage
some sharp recoveries under the in
spiration of even slight betterments.
Wall street believes that the rail-
roads and union labor will reach an
| agreement that will put the rail-
roads on their feet and permit them
to stand alone.
Wall street probably believes this
because it feels that where there is
problem a solution Will be found
On that theory they have bought
| stocks and taken prohtS on their
I sales.
The street has been grievously dis
appointed on the cutting and passing
of dividends here and there. but when
these things happen it chirks up on
the theory that the worst is now
| known"
Rarely do the Wall street traders
follow: they usually discount and
frequently find their theories upset
Doing Their Share.
England and France, Belgium. and
even Italy. are doing their share to
set the world as near right as they
can. and this is evidenced by the
steady strength displayed in the dol
lar values Of their currency, the
pound sterling, the franc and the Ira
They have helped and the advance
in exchange has been one of the
livery hopeful signs of the times. Its
continuation is to be desired.
A Case in Question.
George F.. Roberts. former director
icfo 20 ha
president of the National City Bank
of New York city. and acknowledged
as one of the most able economic
writer's of the day. read report on
business conditions before the eXecu-
tive council of the American Bankers
Association, at Pinehurst. last week. Mr..
Roberts saw positive improvement. but
he admitted that there was nothing in
conditions to arouse enthusiasm. moth
ing to lead to the impression that
business is out of the woods or in
dicative of the speedy return OF our
foreign trade.
John Drum. president of the American
Bankers Association. reported on his
great survey Of conditions. upon which
comment has been made-SignS of bet
terment here and there. but no call for
special optimism.
Specific Instances.
Mr.. Roberts, writing on business
conditions, says of woolen gods and
clothing: Interest centers in business
for fall delivery. and the situation is
very good. particularly for women s
| wear Manufacturers have good or
der books but the memory of last
year abides and they are timid about
buying raw materials, fearing can
cellations."
There should be no cancellations in
peace times.
| Cotton goods.-.'Perhaps the most
encouraging feature of late has been
a greater degree of stability, al
! though prices are but little above
the bottom. Colored goods are NOV
ing very well. The coal strike in
England has set back the improve
ment in cotton trade there. General
ly speaking 'retail trade in large
cities is good. which emphasizes the
falling-off in rural districts.
Iron and steel.-"The smaller pro-
ducers are making practically no
| profit and are not disposed to cut
| prices further until they see some
| signs that trade would be helped by
cutting"
| when Will Trade Revive.
| Mr.. Roberts asks the question.
when will trade revive?" and him.
| self answers as follows:
| There has been no such disloca-
ton of exchange relations, either be-
| tween countries or between indus
| tries within this country, in all the
| past That dislocation must be cor
| rected before trade can be restored
| to normal proportions. Either farm
! products and raw materials must rise
! to the level of manufactures and the
| common basis of wages, or the latter
must come down to the level of the
| farmer, or they must meet on some
| Intern ediate level. The fundamental
| requisite is that they get together.
| Farm products and raw materials
are related to world markets, and