Omaha daily bee., 1921-07-18
Financial
She New pork Gimes.
BY ALEXANDER DANA MOVES.

Chicago Tribune Omaha Bee Leased Wire
New York, July l7.-Events of tn,
past week have been of an interna
tional rather than a domestic charac.
ter, and have borne special reference
to Germany, but with the porten,
not altogether sharply defined. Ir
the foreign exchange market the
hand of Germany has been clearly
shown in recent transactions; in our
own wheat market the influence OF
prospective purchasers for the ac-
count of Germany has caused a
sharp advance in prices. Cotton has
been under a similar stimulus no,
alone because Germany may become
a purchaser, but because England is
already in the market for raw ma
terials with which to supply her re-
viving textile industry. Further
more, Germany has already taken
some substantial amounts of copper
and more may 60 to that country in
future weeks.
At the root of it all lies the fact
that Germany has unexpectedly been
able to either arrange credits or
provide the basis for credit extern
sion in the near future with which to
pay part of her reparations debt fall
ing due next month and with which
also to make much-needed purchases
of commodities.
Loan Made In Holland.
One loan has already been made in Hell
land and American bankers are planning
credit. This may be the first step
toward the elimination OF Germany's en-
deavor to arrange a loan In this country.
At the moment a loan is probably out
Of the question for the reason that pre-
judice against such course would prob
ably be of such wide proportions as to
presage failure. but ultimately the sit
uatton may change. Sentiment has been
undergoing a change abroad where 1t
Is realized that to provide the basis for
Germany meeting her debts to the allies
there must be free opportunity to OBJ
tain raw materials SO that she may pay
in goods and service.
The course OF the foreign exchange
market recently has indicated a gather
Ing up Of Germany's credits wherever
they may be and the transfer Of balances
into those monies with which the next
reparations payment Is to be made. In
dications at tho moment point to the pos
sibilty of a largo portion OF the indebt-
edness due In August, being paid in dol
lars. Sterling, francs and other continen-
tai rates have been steadily receding of
late, while marks have been firm.
happening quito the reverse of what
might have been expected few weeks
ago.
Apparently npw greater degree of
activity may be expected in
Germany and should this come to pass
mi MI ~ tfo
difficulties which beset Germany, but
would remove one of the troublesome
factors in the realm of world finance and
tend toward settlement Of International
affairs as related to central Europe.
Improvement in Prospect.
So far as this country is concerned, the
favorable factors of the week were not
sharply defined. The recovery of business
is still something to be developed in the
future. While conservatism rules, there
is nevertheless evidence Of hopefulness
that, the fall months will see improve
ment more marked than at present. The
basic influences are veering toward the
constructive side. Now and then some
untoward development comes to light,
but on the whole, the so-called sore spots
improvement is being oepened up by addi-
tional price and wage Establishments.
If the stock market is a barometer of
conditions the greater degree of confidence
tnat exists Woulo appear TO Do unloundeu.
But the stock market, at the moment, is
not nearly as good an index as
the bond market which. since the first Of
the month, has been showing steady i'm
provement. This has been based on the
of progressively easier money
rates as the year moves on.
In the case of the stock market, opera
tons are on such limited scale and so
by professional activities, that
the course of prices, except where specific
One thing is clear, however. that the
stock market Is not called on to face such
an array of unfavorable news as pre-
vailed earlier in the year. This would
presume that the process of readjustment
is moving forward with fair speed and
that in many avenues a pronounced de-
gree OF progress has been made toward