New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1921-11-12
MARKET OPINION
BY HENRY CLEWS
New York Banker Gives Review
Of Financial Situation

NSpeclal TO me Herald).
New York, Nov. 1.-THE opening
of the Arms Conference at Washing
ton is undoubtedly the greatest econ
omic and financial event not merely
of this year but of long period, and
the community has very properly OBJ
served 1t at the instance of Presi-
dent Harding by suspending bust
ness for a day. 1t is a noteworthy
sign of the times that most of the
discussion about the conference and
It's probable results has to do with
economic questions. particularly mat
tiers relating to foreign exchange and
public indebtedness.
Foreign Trade Distributed
Meantime the disturbed condition
OF foreign trade has continued. 1t is
q remarkable tribute to the tremend-
Gus economic strength Of the United
States and to the indispensable char
acter Of It's merchandise that our
shipments continue to maintain them
selves at their present high levels.
The quantity Of gold imported by the
United States in payment OF these ex-
portations has now reached the rec
ordbreaking level Of over S60.000,-
900 for the current year. During the
past week the Federal Reserve Board
has published computations based
upon war data never before made
KNOWN which show that at the time
OF the armi5tice this country owed to
foreigners something like sSSo,000,-
900 as the result of unused credits,
balances Of funds left on deposit
Jy 4 ~
ment3 entering into international
trade This great balance necessarily
tended TO Offset the merchandise we
shipped abroad after the arn1istice,
yet the board shows that our net
Claims on other countries today are
not less than s3,500.0O0, 900. They
are. moreover being enlarged at a
rapid rate.
Business More Normal
While 1t Is; true that buyers are
likely to hold aloof for some time
longer. not only in the stock market
but in various trade fields where
prices are uncertain, the approach TO-
ward stability and normal!ty is be-
counting more and more marked in
NAM lines, The trade revival which
is predicted in numerous quarters for
next spring IS in fact already under
way, as is shown by the lessening of
unemployment and the reports of de-
cfdedly better traffic on the railways.
There mas been much less uncertainty
in prices, Government indexes for last
month, now Just made public. show
ing that the commodities there repre-
scented we're stable, while commercial
indexes have been shown a moderate
tendency TO increase.
Prospect Of Tax Revision
The Senate having at last passed
the tax bill, that measure has gone to
conference committee Of the two
house. It is well understood that
strong efforts will be made to re-
write the measure in form that Will
harmonic more closely with the
promises Of the campaign Of last
autumn. Especially will it be at
tempted to effect a curtailment of the
proposed rate of surtaX and to i'm
prove the section relating to excess
profits taxes. The question whether a
sales tax provision may not be incor-
porated w. an Urgent and open issue,
many 6olileving that it affords the best
way out OF inc dilemma into which
congress- has plunged itSelf ny the
elaaAag&s ii A9G5 taaaltle in tjle B@ading
billN, with tina corresponding changes
in yield pSAT1I follow from tEa&a hR@d-
ifica5ii61as. Meantime the Opening ST
tho Arms GSlafef6nce Iiaa empbaatzed
the. nedassp4,y 81 some seton on TIC
Tnterpafjl5RaG Dat F1Sd,tiirt5 htlt, and
that aslass&I&Fa aaa,v' Ia ti4&D6ead If
shortly. PFariGLSR iisfS t;Aa SIP 55rf ri
railroad dfadAt IL auk,7 ~ b. FURNISHED
in t.ilg inaslr fssbNFe.
CTs,cs* &daaat4gs,, Ii,stpei7'ss9s !:7a7.
C;nattk taTHpditlong eSSsdsAsIa IS aFN-
prove. Collections ar7 reported boz
for practically throughout the conp-
FIR. The status of Federal Reserve
banks is now one of unassailablc
strength. Not since the prewar per
iod have either their reserve ratios
or their biz dGlding7 reflected such
condition of liquidity as th"v do to-