The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-05-09
EELING 'NTE--'e E~eER
WEEKLY BUSINESS REVIEW
GERMAN SITUATION
RAISES VALUE OF
STERLING EXCHANGE

y
New York. Nay 6.--lAeGnite prcDara l.
tons for tho advance Of allied troops
into Germany have been followed DH d
short-term notification TO the Beriiii
government that il must accede 10 'hr
basis of the settlement ALREADY OUT
lined by the allies or else prepare io'
the utmost penalty. AS Tor our q" I.
part in the situation. Secretary HusheS
pCsitive refusal to act as mediator and
his; criticism Of the German terms as
unsatisfactnrT has destroyed the last
hope of relying upto the lnterVent'o" u
III, United States to mitigate allied de-
ma ndS. The Tact that under these CIR
cumstances sterling exchange has con-
tinucd it's advance to Il point netl ~
shows the confidence that is entertained
bv thu. business world in the eventfui
as..cptance by C;ermany Of an adequate
adjustment plan. 1t is evident that the
German art on the eve Of submitting
new terms which it is believed VII DE
good enough to receive serious consld-
Grafton at the hands Of the allies.
A New Tax Programme.
Secretary Melons announcements Oh
= new tax programme shows that III"
Harding administration means business
in regard TO the repeal Of the excess
profits and the modification or the en-
tremc severity of the individual income
1000. 100000 per annum. ITesldch
HardingS positive order 10 the dlte?eht
tax II sweeps away, however, some
visions of lowered taxes. EluntlF stat
ing that unless congress greatly cuts
down expenditure, the government must
continue TO get an income OF about
bureaus and departments not 10 call LOT
dcS,cenCy appropriations Is at least u
step in the direction Of making pros
Srammc of economy practical Dul sue
cess in this regard will depend ch'e'' y
upon the avoidance of new commit
, ments-a fact which Secretary Mellon
clearly points out. The sccr"tarE'S plan
; for the rcfunding of maturing dcbt -
ingeniaus and should assist III strepgth-
cnine the values Of government bonds
Prices and Establishment.
further definite step in the process
Of reqdjustmcnt has been taken by inc
United States Steel corporation IN max
ing a reduction Of wages estimated 10
amount to about 20 pr cent. As ma :
ter of fact. tn" cut is very small con-
sidering the wages during IN" war
period were raised anywhere from -"
10 $50 per cent: rcverthr!c'S, the re-
duction IS regarded hopefully, as II can
not fail to have an important effect up
ON IN. minds oT employees generally.
Indexes show still further reductions
Of price Levels during April, although
the downward movement has evidently
been arrested anil the averag" rcduc-
tions which are now reported arc large
" the outcome Of the process Of "cv"n-
=. Gill \ la n BE-
tween wholesale and retail prices IN
many commodities. and the Federal Re
srry,. board in its monthly statement on
bu SnrSS conditions ascribeS the present
. rrtnrdat ion Of read juS;mcnt chiefly IN
this very cause. Improvement in rail-
RI nd operating figures as well as IN rail-
, rond :H?5ncs3 continues 10 Ne in crld-
ence. An encouraging piece o: news is
the announcement thrt more than -
per cent Of workers on the short line
railroads have accepted the reduction
ordered. !, may b. taken for granted
THAI labor in every branch Of trade Will
before long do likewise:
Money and Credit.
The good showing of the Fedora Re
serve system has been continued IN IN"
statement published on May s. reserves
there indicating an increase In gold Tor
the week az SIS. 100000. while the r"-
serve ratio has reached n level of "I.3
per cent. Diminution Of bills held con-
tinucs. tho total now on hand being rr-
/ ported at $o.160. 900. 900. or a further re-
du''ion Of S7.0G0.h00 during the week.
, peflatat,on which il thus StrikinSly
/ manifested in the statement Of the re-
serve hanks has ;ugan bee far more evil
dent in the reports OF the northen
, and eastern institutions than those or
the southern and western. In these cir
: cuInHtanctS factors are clearly at woTN
which may be expected 10 aid in tho at
t9inmcnt O. cheaper money. Reduction
IN rates AMI redScount a; Reserve
banks has n~v cXtendt-l itself e. tho
Federal Ro<..~lr Bank o. New York.
where n cut &C g. per rcn. on ninety
da: parer has ur"n 'uldr. and to Lac
: Reserve Bann {" Atlanta. which ha i
| lowered lis rate to i per cent. This FOL
lows the lead of the Rank of England,
which has Lately made Il reduction 10
/ : l.. per cert. and of continental ba nkS.
Tina; the end Of the deilatation period
has been rel chCl and that more rnura Sc
and constructiveneSS accompanied by
large bank aCcumoda h!oa Is needed is
, thu. stateuncI'. Of Governor Harding OF
the Federal RI serve board.
The market during the past week has
been active AMI strong with prices adj
ing during most of the time and
, an unsuuul!y large turnover h:n! result
ed. There has been very satisfactory
strength in practically tho entire list.
In the rails this has been largely due 10
, the well confirmed belief that economies
: 10 be Introduced. including wage reduc-
/ tionS. will enabir Ia" roads Socn -
make u much h"tier showing. pa:tiru
leriy nov rl1t the outlook for business
| is so much more encouraging The fact
that railroad stocks have again been
taken in hand and that some Of tine low
priced shares are once more looming 10
the front is calculated TO do much in re-
storing confidence. in the market. as they
are always favorites with the public.