davidaulloa/AmericanStories huggingface dataset:
The Washington herald., 1921-05-06
WHEAT MARKET
CLOSES STRONG
Outside Trade Large; May
Tight With Further
Export Demand.

CHICAGO, May S. Unfavorable
reports on the condition Of winter
wheat in parts of the Southwest, as
shown by Inglis returns from Okla
homa turned a weak market into a
strong and advancing one, July
around noon being up. "A cents
from the early low to a new high
on the present movement. Outside
trade was larger and the May acted
tight. with further export demand
for cash grain and buying of the
nearby futures by houses with sea-
board connections. Local sentiment
was bearish early, but strong COM
houses were persistent buy
ers and the advance was easily at
tained with some stop-loss orders
caught on the way up. Export sales
of 500. 900 bushels wheat and 100000
bushels rye were reported up to
noon, with further inquiries in the
market. Country offerings were fair,
but readily absorbed. Forecast was
generally fair weather, with little
change in temperatures.
Coarse grains were lower early
and higher later, the strength in
wheat and unfavorable reports on
oats. from many sections Of the
West being the main influence The
Iowa weekly report indicated a poor
stand in many sections OF the state
oats, which led the de-
cline, yesterday, showed the most
strength today, advancing over 2
cents from the low. Corn was
bought by commission houses, with
the seaboard taking 365,000 bushels
cash grain here. Shipping sales of
oats were $1,000 bushels, includ-
ing $4,000 bushels C I Buffalo.
Deliveries on May contracts today
were $1,000 bushels corn and $4,000
bushels oats. Country offerings
larger. Provisions declined slightly
early in sympathy with hogs. but
the inside figures were not main
tanned, due to buying induced by the
strength in grains. Hogs were 10a
25 cents lower, with bulk of sales
at SSaS5O
The Washington herald., 1921-05-06
LABOR PLENTIFUL
NFARM REGIONS
Jobless Seek Work in Wheat
Belt; Drastic Reduction
In Farm Wages.

KANSAS CITY. May S. - The
surplus Of labor this spring is an un-
usual condition. Evidently many OF
the unemployed in industrial CEN
ters have heard of Western pros
perity. and every contractor is
flooded with applications for places.
Some of the situations are curious.
A road contractor. having lost sew
eral men because he reduced wages
took on strangers and found that
several of them were expert me-
chanics from Detroit who had been
earning a dollar an hour, but were
glad to work for $500 a day.
In the interior towns the demand
for labor. except on the public
works. is slight and labor is plen-
tiful. Already men are appearing
with a claim that they have come
to work in the harvest. and the
greatest influx of harvest hands in
the history of this section ', is ex-
pected.
The farmer is going to have a
smaller labor bill to charge against
his wheat. The present idea is that
the day wages will be the price of
three bushels of grain, which will
be less than SO. as compared with
IS to IS last summer, and as much
as SO q day in 1919.
The Washington herald., 1921-05-06
LEADING CURB
ISSUES STRONG
Prices Show Mild Fluctuation
In Highly Irregular
Market.

NEW YORK. May 5.-There were
many irregular movepents on the
Broad street curb in today's trad
ing. but prices generally kept close
to the recent trading range. Many
of the leading issues, however,
showed strength and were estab-
lished at a higher level, including
a number Of the medium-priced oil
stocks. In some instances II was
believed that the strength of these
issues was due to negotiations for
consultations Of producing proper
ties in line with mergers that have
been noted in other groups of pc
troleum stocks in the past few
months. Granada was one of the
strong features, moving up from 4 y
to S%. Gilliland Oil advanced to
20 in the early trading, but quickly
reacted to Is. Mexican Panuco was
in increased demand, following the
announcement OF important devel-
opment work with drilling near the
Castillo" we'll recently purchased
by the company, which has main
tanned a daily now Of 5000 barrels
since March 30, when the pipe line
was connected with it's Tampuche
terminal. Maracibo was exception
ally heavy. fallinE from 81 to 29A I,
and Simms Petroleum ranged from
1o% to 10S. carib. Syndicate sold
at haS%.
Many of the industriais were in
demand at advancing prices, among
them being Acme Packing. which
rose to 2& from its recent low Of 2.
Libby, Mcneil a Libby was traded
in at s%a10. and Aetna Explosives
certificates sold at 10. A moderate
amount Of business was transacted
in Colombia Emerald at 3h. Durant
Motors was steady, selling at 20K
a20S. Intecontinsntai Rubber sold
at IL to I'm, Sweets Company of
America held hrm at az, United
Retail Candy was quiet. with a
small amount OF business at 7k,
Nipissing, which has been in supply
since the dividend reductions. sold
at AZ and ~.
The Washington herald., 1921-05-06

1t is clear that there has been a
very material decline in the price
of cotton goods since last Decem-
ber. 1t Is equally clear that the
decline has been very uneven in diff
ferent classes of goods. II brown
sheetinEs can be sold at an advance
Of IS to 25 per cent over prewar
prices. is it necessary that other
classes of goods should remain 80
to 100 per cent above the same base?
The argument that high wages
make these advances necessary can
hardly be substantiated. In view of
the fact that the 1919 census OF
manufactures is not yet completed.
it is difficult to determine the rela-
ton which wages bear to the value
of the finished product under pres
ent conditions.
The 1914 census of manufactures
shows that the total value of cotton
goods produced was s7O1.301. 900.
Raw material amounted to e3 per
cent of the total value. wages ac-
counted for % per cent OF the total,
while the remaining Is per cent rep
resented profits and other costs. The
relation between these several items
are different now from what they
were in 1914. Wages in factories
in 1920 were approximately 125 per
cent above the prewar level: In
recent months the wages of textile
workers have been reduceds'from
is to 35 per cent below the 1920
level. Taking IS per cent as an
average reduction would still leave
wages 20 per cent above
Copyright. 1891. by
The Washington herald., 1921-05-06
Peru Legislates
Drastic Bank Ldlp

President Leguia, of Peru, has
decreed that all banks, national or
foreign, will be forced to lock their
entire deposits and capital in their
vaults. or employ them in Peruvian
investments and loans, according to
a cablegrap from Lima yesterday
to the Department Of Commerce.
Leguiaf Is having trouble main
tanning himself in ONCE against the
opposition Of bankers and business
men Of Peru. His latest move fol-
lowed his failure to, EXTRACT a
forced loan" from Peruvian banks.
Newspapers which criticized the
Legula administration were recent
ly taken over by the President and
are now being run by the govern
ment.>
The Washington herald., 1921-05-06
Federal Reserve Banks
Planning Rate "Cut"

Plans for reducing the dis
count rate now are being made
BY all Federal Reserve banks, Il
was learned ON high authority
yesterday at the Treasury De-
partment. The reduction will 20
into effect I'm q few days.
Reduction In Discount rates. Is
expected to boom business and
make money easier. IL will menu
an end of the detection process
by the Federal Reserve banks.
The discount rate now is per
cent, before the war II never
was more than Z per cent. The
rate was arbitrarily boosted
throughout the Federal Reserve
system shortly after the. armis-
tice to put q break upon specu-
lation and extravaganza. The
break In needed no longer, 1t was
held.
The Washington herald., 1921-05-06
FIND CONDITIONS
SLIGHTLY WORSE
Government Survey Reveals
Fact Despite Prevalent
Belief to Contrary.

Despite the prevalent belief that
unemployment throughout the coun-
try has Iessened. the United States
Employment Service, in a survey
just completed, found that condi-
tions at the close of April were
slightly worse than a month be-
fore.
The number of men unemployed in
creased four-tenths of one per cent
OF fifty-three cities east of the Mis-
sissippi, twenty-eight showed de-
creases in employment and twenty
five revealed an improvement in con
ditions. The Pacific Coast, with
minor exceptions, lost ground" ac-
cording to the survey.
Firms numbering 1.424, and nor
mally employing 100000 persons.
had 7,037 fewer fewer workers on
the payrolls than a month before,
making the net decrease since the
beginning of the year about $4,000
or 2.9 per cent.
Dullness in the iron and steel in
dustry is held responsible for much
unemployment in Pennsylvania and
Ohio. Plants show a decrease in
employment of 30,055 or 7.8 per cen,
for the month. Contrasted with
this is a boom in the automobile in
dustry, which increased its en-
ployment 22.3 per cent. This meant
the addition of 1885 workers.
Greatest gains, from the stand
point Of numbers, are reported from
Detroit, Chicago, Toledo and Pas
sale. Figured on percentage
basis, however, Chicago is far down
in the list In many cities. the sur
vey. disclosed. the continued mac
tivity in building has affected large
numbers and retarded activities in
other lines.
The Washington herald., 1921-05-06
TIMELY WALL STREETTOPICS

NEW YORK. May 5.-Again the
speculative community was given
good reason for deferring the stock
market reaction which many OBJ
servers had been freely predicting
for a week or more. Reduction of
the New York Reserve Banks COM
mercial paper rediscount rate slim
ulated buying that resulted in gains
Of one to four points or more being
recorded. Rails and industrials
alike took part in the movement
An early advance, a midday set
back and a recovery in the last two
hours left the market with an ap-
pearance of strength.
The buying orders on which the
initial advance in stocks was car
ried out were entered on brokers
books between the time clerical
STATS got down to their desks and
the opening. The announcement of
a reduction of the Federal Reserve
Bank rediscount rate came too late
yesterday afternoon to permit trad
ers to do more than map out a
course to be followed this morn
ing. The existence of a great vol
ume of orders to buy "at the open
ing" was responsible for the rapid
rise Stocks opened with gains
ranging from fractions to more
than a full point and continued up
ward until around lo:45 the
The Washington herald., 1921-05-06
COTTON CLOSES At
HIGH QUOTATIONS
Weak Market Shows Strength
On Renewed Buying by
Commission Houses.

NEW YRKo. May 5.-There was a
market right after the opening which
lasted throughout the first hour with
prices going off to to 10 points
from yesterdays closing. May SELL
ing down to 1243; July. 1881;
October. 1852. and December. 1891.
This was mainly due to some Ifuui-
dation In the near months by some
of the largest spot houses who were
selling May and July contracts YES
terday. Liverpool cables were dull
again and there was little news of a
stimulating character to be found
in the trade reports as yet from
either the local dry goods districts
or the milling centers of Fall River.
The market accordingly dragged
throughout the forenoon, despite the
activity with rising prices generally
on the stock market, further strength
in foreign exchange, and continued
unseasonably cool weather over the
greater part of the cotton belt for
this time of the season. During the
early afternoon the market finally
developed strength on renewed buy
ing by local and Wall Street COM
mission houses. This was undoubt-
edly a somewhat belated response
to the lower discount rates on COM
mercial paper announced last even
ing from Z per cent in effect since
last June to So at present by the
New York Federal Reserve Bank.
This undoubtedly marks the be-
ginning of dehation in the general
money situation leading to grad
ually lower rates for time loans.
In this connection II is shown that
whereas the total amount of re-
discounted bills outstanding at the
end Of December by the New York
Federal Reserve Bank was 1884,
100000 they were down to s632,-
100000 last Saturday. or a total re-
e1ction Of s332.OoO.Ooo for this period
q the past four mantle
The Washington herald., 1921-05-06
MELLON REPORTS
IMPROVEMENT IN
FINANCIAL STATE
Great Change for Better
Declares Secretary at
Conference.
DISGUISE TAXES
Impossible to Pyramid Income
And Sales Tax-Treasury
Dept. to be Reorganized.

Financial conditions throughout
the country have improved greatly
during the past month, Secretary OF
the Treasury Mellon declared yes
terday in his semi weekly confer
ence with newspaper correspond
ents.
He forecast that, following the
reduction in the interest rates
charged by the Federal Reserve
banks of New York and Boston.
lower rates will be put into effect
by Reserve banks in the Middle
west and throughout the country.
This will be done, he thinks. in time
to allow easier rates to farmers
in crop-moving season.
Reduction in Federal Reserve
rates will end the period of "liquida-
ton" and credit shrinkage, Treas
ury officials believe.
Secretary Mellon asserted that
regulations governing the distribu-
ton and sale of beer and wine as
medicine, under the ruling Of for
mer Attorney General Palmer. will
be promulgated as soon as the new
Internal Revenue Commissioner is
sworn in.
This action. he indicated. will be
taken regardless of any bills pend
ing in Congress to set aside the
Palmer decision.
I'VE cannot anticipate legislation
that may be passed in the future
by Congress" declared the Secre-
tary.
Discusses Tax Reform.
Discussing tax reform, Mellon said
there Is an issue between the pro-
gressive income tax and the pro-
posed sales tax 1t would be i'm
possible, he said, to pyramid" both
measures for raising revenue, and
that II a sales tax were imposed
the income taxes must be modified.
A considerable amount of revenue,
he indicated, might be raised by
imposing new consumption taxes on
staple commodities, such as sugar.
tea and coffee.
Reorganization Pending.
Mellon indicated that a reor-
ganization of the Treasury Depart
ment is impending. Discussing his
suggestion to Congress that the Of
fice of the Undersecretary OF the
Treasury be created, he said this
Official Probably would have charge
of the foreign loans
The reorganization might include
abolition of the office OF Comptrol-
Ter Of the Currency and severance
of all connection between the Treas
ury and the Bureau of War Risk In
surance and Public Health Service.
he added.
The Washington herald., 1921-05-06

whole list was one to three points
above the Wednesday closing level.
The pace, however, was too rapid
to be maiptained. Keen observers,
standing over the tickers, rec
ognized this fact and acted accord
inGly. They entertained. and open
ly expressed opinions to ths effect
that the big traders wore taking
advantage of the general enthusi-
asm to unload the last of their
lines of long stock.
Two OF the stocks whose actions
aroused suspicion were Mexican Pc
troleum and Cosden. The former
opened with a net gain Of one point
at 149, went to l49h and then slid
of to l47k before noon. Cosden
failed to join in the upward move
ment. For long time II has been
believed in many quarters that the
big operators were getting rid Of
their stocks. Cosdeh and Mexican
started their upward movement
days before the general list was
taken up and finished their move
ment earlier. That was the theory
of those who saw in the tagging
tendency of these two stocks. evil
dence that operators were using
this mornings rise to complete H.
quidation. The only trouble with
this theory is that il would pre-
suppose an absence Of selling pres
sure in these two stocks today.
New York reserve bank, follow
ing closely on a similar reduction by
the Bank of England and coming at
time when rates are being low
cred by the Central Banks in
Sweden and Denmark. indicates
that central banking authorities are
convinced that readjustment has
reached a stage at which IL is safe
TO respond to the business mans
plea for cheaper money without
precipitating a recurrence of spec
ulative activity. The reduction, as
in the case of that at London. is
smaller than generally had been eI-
pected would be the case when a cut
was made, but the Banks de-
cision to reduce by a half rather
than a full point is a wise precsU-
tiOn and does not preclude a fur
thet small reduction at fairly early
date. No sudden or great easing in
the money situation is indicated
ny the change, but rather a desire
TO decrease the cost of doing bus
mess at a time when the dangers Of
imitation are well under control At
the same time, the Improvement in
the New York banks position dur
ing the past three months has bean
very marked. Thus on February 6
the Banks reserve ration, when cal
culated without reference to bor-
rowed reserve stood at 33.2 per
cent, whereas on last Wednesday
the uank was no longer a borrow
er from but a lender TO other re-
serve banks and its ratio. when
calculated on a comparable basis
stood at 65.3 per cent. The latter fig-
ure is the more interesting as sug-
gesting a proportion of reserve at
which the reserve authorities con-
sidered reductions feasible. In con-
trast with our own rising reserve
ratios, the Bank of England's state
ment shows decrease for the sec
one consecutive week the latest fig
ure being 1873 per cent as compared
with 1928 a week ago and l4.5 two
weeks ago. An expansion of slight.
iy over one million pounds in cir
culation is responsible for the lat
est change.
The Washington herald., 1921-05-06
U.S.CUTSBRITAI
LEADASEUROPEAN
COAL SUPPLY BASE
During 1920 Exports
Equal Two-thirds of Eng
lands Aggregate
BRITISH MART IN 1918
Returns Show Heavy De-
crease In Kingdoms Ship
ments TO South America

NEW YORK. May s.-An on,ctsl
British estimate. just received By
the Bankers Trust Company. of New
York. from its English inforamttou
service. indicates that the Units1
States. in the year 1890, exported
two-thirds as much coal to Euro
pean countries as was exported by
Great Britain. The full signincance
Of the American export coal trade
with what was formerly almost ex-
clusiyeiy a British market. 10 apps
rent from the following compara-
tive figures, all OF which are from
official British sources:
Coal Exports
d Europe. 1918. 1870.
Great Britain. ss.sss.s57 ls.sIB.47s
United States. s476. 900 I5,sSs, coo
twelve months ending June. 1914
The official returns did not
include comparative figures Of
the trade by countries. but Of
icial statistics issued by the
British Board OF Trade and the
United States Department OF Com
merce for 1920 make possible the
following detailed comparisons:
Coal ENnOrtH
The Washington herald., 1921-05-06
WHOLESALE COTTON GOODS
PRICES STILL TOO HIGH
Ginghams and Prints 80 to 100 Per Cent Above
1914, While Raw Cotton Is at Prewar Level.
(By The washington Herald'. Economi.t.)

The present period Of business
depression and decline in prices be-
gan about one year ago. Almost
from the time that the first price
cuts were made manufacturers and
dealers have claimed that the bot
tom had been reached and that
prices could not be reduced any
farther. Even when raw materials
declined much faster than the fin
ished products 1t was said that la
Dor formed such a large proportion
of the cost of manufacture that no
further cuts could be made. Anyone
who has read the newspapers Is IA
miliar with this line of argument.
Nevertheless. under the relentless
pressure of economic forces prices
have continued to decline.
Some months ago we attempted
to make a comparison between the
decline in the price of raw cotton
and the price of finished cotton
goods. This comparison was made
PRICE COMPARISON OF co.
In sants no.
The Washington herald., 1921-05-06
COFFEE MARKET.

NEW YORK. May 5.-Dullness and
narrowness were the only features
of the coffee market today. Long
intervals elapsed between trades.
which were confined to small lots.
Much of the time early in the ses-
sion prices were close to wednes-
days fnal figures.
On the caA bids were 5as points
lower, but there was no selling pres
sure and business was confined to
one lot of December at yesterdays
closing bid price. Subsequently
larger offerings appeared
and , ID s sales ne;,,s were made at losses of
The generally easier tendency was
traceable t6 the continued
large crop movement in Brazil and
the dullness in the local spot mar
ket. On the other hand. primary
markets do not break under the
heavy arrivals and our huge ware
house deliveries last month indi-
cate a material increase in con-
sumption.
The Washington herald., 1921-05-06
NATIONS SAVINGS
DEPOSIT BANK BOOK
TOTALS BILLIONS
Americas Entry Approx
imates S6,5O0, 900, 900,
Treasury Head Says.
HUGE GAIN OVER 1917
Reports Indicate Habits OF
Thrift Begun During War
Are Here to Stay.

The receiving teller's entry in
Americas national savings deposit
bank book now stands at approx
1nately sS.50O.O 100000. it was esti-
mated here yesterday on the basis
of data in the ONCE of the Comp
troIler of the Currency. Exact re-
port on the entry will be collected
by the Comptroller next month.
Before the war. savings accounts
in the nations 30. 900 banks totaled
only about Ss.OO0.0OO. 900 or less
than one-half that at present.
Despite widespread unemploy-
ment and the economic depression,
fnen and women in every section
of the country now are holding fast
to habits of thrift begun during the
war and piling up additional mill
lions saved. Acting Director o. c.
Lester. Of the Thrift Division of
the Treasury Department, said here
yesterday.
The American people" said Les
ter. Increased their savings during
the war and after, Hundreds of
thousands Of persons who formerly
spent everything they earned now
are banking large slices of their
incomes. The American savings
pass book never will go back TO
the prewar figure"
some @CuttinE, Noted.
Adverse economic conditions,
however. have forced some cutting
down Of the saving habit. it is in
dicated. 4 year ago. the govern
rnent in a careful survey found that
approximately $500. 100000 was on
deposit in savings accounts in o.
900 State. private and mutual saw
ings banks. In the last year the
total has been forced down nearly
$1,000. 100000. But this was to have
been expected, officials point out,
since the resources of all banks
have been reduced during the same
period
Government officials hope that the
savings curve now has reached the
lowest level and that the total will
soon begin to climb instead of
descend
Spells Independ
The gigantic total of savings de-
.pOsits now entered on the national
pass book spells independence. COM
fort and insurance against an eco
nomic rainy day for the great mass
of workers and salaried individuals
and their wives and children. it Is
pointed out.
The thrift habit is getting
more and more persons every day.
the receipts of the government in
the sale of war savings stamps
show. The government now owes
holders of these securities. or baby
bonds. more than $500. 1000. 900 The
interest on this item is more than
S32.OOO.0OO a year.
The government also is paying
nearly $1,000. 100000 a year to some
22.000.0O0 owners of liberty bonds
and Victory notes as compensation
for their saving their money dur
ing the war.
The Washington herald., 1921-05-06
Corresponding


ALLOWING 20 per cent increase over 1914.
These results show that with raw
cotton at the prewar level and with
all other costs 10 per cent above
1914 the total increase in the cost
of the finished product would be
about 26 per cent. Some of the COM
modities listed in the former table
are below this, but many are above
it. 1t seems pretty clear that even
IL these calculations are only ap-
proximately correct there is no ex-
cuse for ginghams and print cloths
selling from so to 100 per cent above
prewar prices. There still seems to
be room for reduction before rock
bottom is reached. In all probabil-
ity readjustment will have to be
continued until these changes are
forced upon manufacturers.
Washington Herald,)