Evening star., 1921-09-11
THE WEEKS UPWARD TREND:
REASONS FOR AND AGAINST
Action Of the Stock Market Evidently Dis
counts Business Betterments Yet In En-
bryo-Sentiment Is Much Better.

stacles. and a gigantic obstacle looms
up in the Fordney tariff bill. now before
the finance committee Of the Senate.
1t Is measure that is not only based
on unsound economics, but will inject
| injustice and confusion into an impor-
tant division of the country's business
The bill contains many destructive pro-
visions that will place upon the con-
sumer the burden of higher prices.
| "Chief among these Objectionable fea-
lures is the so-called American valua-
tion plan. Upon many commodities
particularly textiles, the bill levies ad
| valorem duties. These are computed not
upon the foreign market value. as in all
previous acts. but upon the wholesale
selling price at which comparable and
, competitive goods Of domestic manufac-
| ture are sold to the principal markets of
the United States: or. in cases where no
the United States. upon the wholesale
selling price of the imported article or
other like imported articles
THE ad valorem rates fixed in the bill
computed on the American selling price
would result In greatly increased duties.
and consequently advanced costs, taking
many articles out Of their normaf>price
limits and compelling merchants to fix
demoralizing effect in business.
I; The Fordney plan means a revolu-
! ton in our methods of customs adminis-
tration. 1t is a step from simplicity to
tcomplexity. The accumulated expert
ence of tariff students during the past
hundred years is set aside, to be sup
planted by system that lacks system.
Manufacturers and merchants in trans
acting international business should be
able to estimate with reasonable accu-
ing to cost them.
'Tnterna tional trade Is founded on ad-
vance orders both for import and ex-
port. Our foreign trade is dependent on
; exchanges Of merchandise. 1t is barter
on a grand scale. The absence of un-
certainty acts as a stimulant to trade
| between nations.
1.-The merchant. who must buy his
; wares six months or a year in ad-
! vance and be compelled to make such
| purchases with no idea of what some
! American exporter or manufacturer
I may think should have been paid for
| the goods. is placed in precarious
! position. is actually prohibited from
trading in foreign goods. Any meas
| ure that makes the general business
! of importing hazardous, that-will cur
| tail our consumption of foreign goods
and increase the price of merchandise
! manufactured in this country, is
| menace to business and to the buy
| ing public"
| Hive Listened to Opinion.
! Cnquestionably the members of the
| Senate have listened to public opin-
ion and private criticism of the Ford
I ney measure. and no one can tell in
| what form the measure will finally
emerge to be sent to the conferees.
| but the chances are that its sponsor
| in the House will have some diff
Guilty recognizing the document. while
! the chances are also favorable for its
being made effective March Is. 1921.
Money Rates Easy.
! Every one is predicting easy money
| during the fall and winter. and the
chances are that the prediction will
be fully realized. The reserve banks
are all very strongly fortified and in
| a position to open the purse strings
when the Federal Reserve Board
gives the word. with intent to accel-
crate the recuperation.
Evidnetly the gentlemen who pre-
side over the destines of the system
consider the pace at this time fast
F., enough.
The Rise in Graphophone.
! The last two days of the week have
! been attended with a somewhat SEN
/ sational rise in Columbia Graphic
! phone preferred. the gain being also
reflected in the common stock. in a
rise to SIS. and the preferred to
! 22k. Both these prices seemed un-
! attainabie a week ago. and both have
been made in the last few hours of
/
! So far as news is concerned. there
is nothing to account for the rise, but
it is none the less welcome to tired
! shareholders, almost ready to take
i their losses.
1t is understood that the company
lis still manufacturing, but by no
means to capacity: that the Baltimore
plant is used for storage and that
| the Canadian plant is being used for
assembling machines.
| The chances for forced reorganiza-
tion are said to have passed.
Bank Statements OF Condition.
Just at this time, before the flood
of publications of statements in re-
sponse to the call of the controller
of the currency. this subject. dis
cussed by Joshua Evans. jr.. vice
president of the Riggs National Bank.
is a matter of interest. Mr.. Evans,
spea king before the officers of the
forms provided by the controller for
the banks. and explained at length
each item indicating its Importance
with reference to the condition of
a bank. He said, in part. in closing:
| Incorporated banks In the District
of Columbia not members of the ma
tional banking system are required to
make reports of condition to the
controller of the currency from time
to time in substantially the same
form submitted by and under similar
|conditions as those imposed by law
upon the national banks. State banks
and trust compa MES outside of the
District of Columbia are subject to
the laws of the states in which they
| operate, and they report periodically
as calls are made by the head of
the state baneing department of their
respective states. Generally such
calls are not as frequent as those re-
quired under federal law, nor is the
! Information asked for in as much
detail. There IS, however. a pro-
nounced spirit of cooperation exist
] ing between the Office. of the con-
troller of the currency and those of
the state banking departments
Simultaneous examinations. when
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