Evening star., 1921-07-03
BY 1. A. FLEMING.

IA While the time has not come for the
sUnited Tets CO." there are many
ssigns of improvement, of further ad-
sjustment of conditions that are grad
eually and very slowly making for
sthe better times that are coming this
HALL and winter. and it is to be hoped
that the start then made will carry
sAmerican prosperity over to 1922. in
full recognition of the greatness of
i2the home market and with every one
Encouraged to play we'll their part in
lkhe rehabilitation.
4 There has been no real prosperity
an the United States that was not
built upon the foundation Of iron
and steel. and then largely on rail-
roads buying for their needs.
& If the railroads of the country
should buy simply up to their actual
neceSsitieS in 1922 there would be
such prosperity in the iron and
Steel trade that an olh-t!me Doom
with advancing prices would be on
] For months, almost years, the dif-
9erent railroad corporations have en-
deavored to keep their earnings in the
net column. that they might not show
a deficit, through utter neglect or
maintenance and equipment.
This condition must be mended ana
ahe outlook is good for early con-
structive work to this end. The gov
ernment owes the railroads $4,000
Doc. that would come in very handy
right now to eXpend for equipment.
! What Is more, President Harding.
who is working harder than almost
any other one man to bring back the
business confidence and good old
dimes, realizes that there can be no
teturn of these desideratums. unless
the railroads are able to pace the
kay-hence he will probably see to
it that the $60O.O00.000 is forthcom-
ing.
F: During the past week rapid strides
were made in the restoration or the
normal In the railroad wage situation.
Indeed, the readjustment of the wage
and salary scale in all Industries IS
moving ahead in a most satisfactory
. manner. in undoing some OF the
forced advances OF the wartime
hurry.
! Crops are coming along in the good
old fashion and the great agrlculturai
Community will soon be in tunds again.
IT may take a second crop to make
BUR farmers flush and happy after
their experience of 1920. but that
phase of the situation is clearing up.
In the meantime the hnancai SIT
patton has completely cleared up SO RAJ
As the country at large is concerned
business conditions of today the credit
market is small factor.
c There are some other situations that
kre not clear: conditions that are
muddled and that have yet to pass
Through the crucible. OF these We
are not as fully informed as we are
of the railroad situation. and must. In
p measure. depend on the whisper and
the head shake anent this or tnat
corporation in an effort to determine
whether the passing and cutting or
dividends will make for safety or
whether receiverships and forced
liquidation will be necessary to clear
fhe atmosphere. That some failures
Vet mentioned by Bradstreet or Dun
hre expected by financial judges is
admitted to be probability. The re-
sail trade has stood the brunt or the
frouble. but is today practically out
pf the woods. buying only as needs
fequire. avoiding cancellations, large
Borrowings to carry big stocks. and
Subsequent losses through deprecia-
zion in production costs.
The retail trade has ecquired much
knowledge and 1t is safe to assume
that the wholesale and manufacturing
Interests have absorbed much infOr-
nation against the future.
: During the next three months much
good work will be accomplished in
the rebuilding work, railroad adjust
ments will be well under way. with
Ahe prospects for good winters
4rade.
June lOunQ tne general tTeuu u
trade and industry unsatisfactory.
! Congress is laboring with the prob
lens Of finance, tariff and taxation
Ind must sooner or later evolve pro-
fection of some kind for American
Industry and relief from taxation's
burden-a problem hard to solve. but
which is not impossible of solution.
1t is only necessary to realize that
the federal reserve system is func-
fioning better than its trainers ever
Y
teady; that the American market Is
the best consumer of its own prod
Acts and its factories produce from
It's raw materials in great plenty-to
realize that business must come back
lit did in '73. 's3. 1901 and 1907-it
New York Stocks.
Z Action during the past week in
Gtocks favored the constructive side in
tails. developed more strength in some
Of the industrials and great irregu-
fhrity of the oil shares.
| :The advances. as compared with the
Iosses sustained, have not fairly
Whether the pace will be main
fained after the holidays remains to
te seen, but the banking element is
i Aervous and does not hesitate to ex-
! iress itself as doubtful of any present
advance holding.
sThe enormous disbursements attend
' Snt on July l will probably be re-
nected in the bond market, the more
% as. there are no large promotions
coming out in the immediate future.
The probability of tax revision has
tessened the demand for tax free Sc
eurities.
sBuiIdinE Operations Encouraging.
Building operations this year are
far ahead of 1919 and short of the
total of 1920.
: Some cities are reporting large
Increases in building. and, with great
cuts in costs, and an unlimited hous-
ing demand, building should show
great gains during the rest of the
year.
Banking Trust and Mortgage Co.
: The Banking Trust and Mortgage
Company, now in process of organi-
cation. has no connection directly or
indirectly with the proposed Garfield
Trust Company.
:: The former corporation is the one
Of which Percy S; Foster will be
chairman Of the board of directors.
The company. which will have a
capital OF $1,000,000, is now being
organized by the Premier Finance
Company, with Offices in the Westory
building. Stock to- the amount OF
the wide distribution of shares gives
promise of a successful business for
the corporation.
THE subscriptions to the stock are
being made on a par value of $40 a
= share. at $25 share. thus assuring
. surplus Of $250.000 with the start
ing of the trust company.
The list Of subscribers to stock con-
tains the names of many of the lead
ing Italian and Greek business men