Evening star., 1921-02-27
BY I. A. FLEMING.


of the transfer of the administra-
ton of the national government from
one party to another, that one cannot
wonder that there is hesitation in
business.
Very gradually, as one after an
other of the great industrial corpora
tionS discloses its poor condition and
takes its medicine to the extent OF
cutting to the bone for the reductlon
of inventories. stopping dividends,
closing down, perhaps, on all activi-
ties for a week or two, and starting
in on a new wage base to meet pres
entday market returns for their ac-
tivities, the corporation energies
from the gloom and starts in on part
time and will gradually increase into
its normal stride as business de-
velops.
The more drastic the dose and the
sooner taken the quicker the recoN-
cry from the disease of imitation and
overproduction. We have seen some
stick corporations in the last few
weeks, and some of these are now
emerging. chastened perhaps. salts
fled, with less profits and less volume
Of business.
AS the days move on, each with
some recovery. some with further
unfavorable developments of tins or
that group or individual corporation,
we find the market for securities IN
fiuenced by cross-currents that pre-
vent any general rally, while at the
same time a general decline does not
get far before it is changed again by
a recovery.
The street. referring thereby to
| financial New York, has set April
l as the period after which the re-
covery will take on a little more
speed. be more prominent and be eX-
tended to securities. 1t may be that
| a week hence. with the advent of the
new administration, there will be a
| change for the better. but 1t does not
seem as if it could go far until some
! important questions have been defl-
nitely settled.
| There is too much unrest too much
study for self-interest and not enousn IL
! for the good of the entire world, too
many possibilities for trouble that
must be permanently laid away be
| fore the track will be clear for the
prosperity parade.
The public is still undecided about
| things and still buys only as needed
The country, referring to the agri
| cultural districts, feels too poor TO 90
much anything else in the way or
buying, and the retail and wholesale
trade both suffer. with incidental lack
Of freight tonnage for the railroads
and inadequate earnings as result
The London Conference.
The London conference, if it shall
result in the Strengthening out of the
i European tangle, will have gone far
70 relieve one source of misunder-
standing. The final settlement of the
German indemnity has too long been
DELAYED. while in the meantime Ger
man made goods. variously trade
marked and branded, are coming IN
competition with production OF the
making good strides in recuperatlon;
Dissapointment has been expressed
in washington during the week over
some developments connected Win
/ national loans and mandates granted
by the allied council or the league
are strained and the questions OF
taxation and other public pollcles
await settlement.
Money is being held strongly by
banks. and there seems to be no IN
tent on the part of the Federal Re-
serve Board to relax the DISCOUNT
rates of the regional banks.
The credit situation has worked
| much clearer. Bankers prominent IN
the credit field place their estimates
| of distress loans at about soo,.
| 400 600 to s7500O,0OO. They are not
"frozan - but are loans not easily col
lectible. and which bankers are treat
| ing generously, rather than TO force
the sale of collateral.
Talk of Bond Issue.
Thare is renewed talk of making a
hopd issue for the purpose Of caring
for the floating debt of the govern
ment. as represented by the outstand-
inc treasury certificates. something
over s2,50O.O00. 900. Secretary Hous-
ton favors wiping it out by taxation
These certificates of lndepteuhess'
IL,
is a serious matter, disturbing 1uhos
every little while and keeping Two
and one-half billions from employ
ment in trade and commerce. for the
Treasury gets its money from .ne
hanks and the people to carry TINS
big loan. ,sir,
comment on this subject declares thae
"it should be the early business VI
the incoming administration TO eahe
the unproductice Treasury
out of the money market
IT also SAYS: "If we could anord 10
nav off the floating Indebtedness OUT
of the taxation of this year and lSZz
If would be another matter. But we
have. no right to impose such
naralyZing levy upon business.
There is no need for it. Ihere Is
market for the funded BONDS
consideration to the various Liberties
ana an effort should be made not TO
ini,,re their standing in the market.
The refunding operation might be ex-
tended to some of the nearby issues.
The Chicago Packers.
The Chicago packers are having
much more trouble to divest them
selves of their stock yard holdings
than they did to acquire them. In
the case of the Union Stock 1aroS
of Chicago, the purchase of large
tract of land near Tolleston, Ind, and
a demand for a substantial stock in
terest in the yards, under threat TO
move the business to the acquired
site. was all that was necessary.
Wall street Had Information.
Wall street had information early on
Friday morning to the effect that j.
SHELTON Williams, controller of the
currency. would issue a diatribe
against the United States Steel Cor
poration. At least one inquiry came
over a private wire house on 15th
street asking for confirmation of such
intent.
And Steel common advanced to a
new high on the present move
ment yesterday, displaying excellent
strength.
January Foreign Trade.
There are evidences that the Foreign
Trade Corporation and the various
other proposed export sides are saoly
needed. Our foreign trade for jan
uarv fell off twenty-five per cent, not
because Europe did not want our
merchandise and breadstuffs, but by
reason of lack of funds and their
equivalent. credit.
Tribute to James Trimblc.
1t was a tribute of high merit that
the forty-odd bankers of Washington