Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-07-01

able, but it is certain that the movement
can not continue at the present rate with
out adversely affecting exchanges. So
far as this country is concerned, there is
probably more cause for apprehension on
this score, in view of the possible impe-
diments to our export trade, than for fear
of an imitation of our currency and
prices in consequence Of the accommodating
gold supply.
For the most part production and
trade show continued hesitation. In
some localities. however. the volume of
retail transactions, allowance being made
for the lower prices, equals or exceeds
that OF the corresponding period last
year. Appreciate improvement is found
also in some lines of manufacturing
Those industries which were among the
first to undergo readjustment are giving
evidence of incres sed activity.
Nevertheless. it has become more
clearly evident that the squirt Of activity
in some lines of production in the spring
was. as pointed out in the April number
of the Survey, merely of a seasonal char
acter The expectation of an early up
turn in business based upon the belief
that the increased production in these
industries would be sustained was not
we'll founded. It is doubtless a good
omen that the scope Of the necessary In
dustrial readjustment is now better I'M
derstood.
BASES OF CREDIT
ARE STRENGTHENED.
Improvement in underlying conditions
upon which a sustained revival OF busi-
ness must be based. however continues.
Wages are being further adjusted, price
declines are less abrupt and the bases
Of credit are being further strengthened
through reductions in so-called frozen
loans and the strengthening Of bank re-
serves Accumulated stocks Of goods in
many lines are being reduced, affording
the bases for larger production In the
future
Unemployment in general continued to
increase in May, according to statistics
compiled by the Department Of Labor.
The net decrease in the number Of en-
ployes Of representative firms last month.
as compared with April, was approx
mately one-half OF 1 per cent. Prelim-
mary reports for the manufacturing In
dustries Of New York State indicate
reduction of about per cent IN en-
plovment in May, a compared win April.
Strikes are responsible In part Tor the
increase in unemployment.
1.-THE conditions noted in the foregoing
are sufficiently representative to show
that the industrial outlook in this country
is not without favorable aspects, and on
the whole. slow progress is being made
toward a revival of business.
"Since the recent announcement by the
railroad labor board Of a 10 per cent
reduction in railroad wages effective July
/ there has been considerable agitation
for a horizontal reduction in freight and
passenger rates. Such a reduction would
he advanta geOus to the economic well
fare Of the country. Of course. II It could
be effected without further jeopardizing
the finances and credit OF the carriers
and prec plating receivership. Further
weakening of the financial condition OF
the railroads would be decidedly detri-
mental to the business of the country.
The wage reduction when made
general is expected TO save the railroads
S4O0C00.OOO annually, and an additional
saving of $500 900, 900 is expected through
the elimination of waste heretofore
occasloned by the national agreements
although how much may actually be
saved this way is very problematicaI
But even a reduction OF S7OO.O0OOO in
annual operation costs would not alone
enable the roads TO earn a net return
OF 5l5 or 6 per cent upon the valuation
placed on their properties by the inter-
state commerce commission, as contem-
plated in the transportation act with
the present reduced traffic.
an the fiscal year ended June 30 1915
operating expenditures amounted to 81
per cent Of operating revenues, which