New Britain herald., 1921-09-10
IMMEDIATE OUTLOOK
WEEKS Review And
Henry CleWS, New York Financial
Expert, Gives His Opinions

Especial to The Herald
New York. Sept. 1O.-President
Hardings review of the work of con-
gross and his statement of the plans
OF the administration with respect TO
pending legislation once more fur
utshes evidence of the effort that is
being made by the government now
I'm power TO improve business condi-
tions by every feasible means. Co
incident with this attitude on the
part of the Washington authorities
has been a very distinct turn. for the
better. Improved prospects in many
branches of industry. and more
hopeful tone with respect to condi-
tons in general are laying the
foundation for progress during the
autumn season.
Stabilizing Prices.
One of the best evidences of the
turn toward a more stable condition
OF affairs is seen in the fact that
prices have evidently been approach
ing n more fixed condition. The
commercial indexes for the month of
August now show that a slight aver
age advance has taken place during
that period. This advance is still
less than "A point. but lis significant
AVE J" nat II INDICATES. lHtEe Will
still be adjustments to be made in
some branches of business where the
level has not accommodated itself to
general conditions. On the average.
however, the current price level has
evidently touched bottom on this
movement fact which should give
much greater assurance in the max
ing OF forward purchases. In some
lines. goods have already been dis
tinctly advanced where the low level
previously reached was manifestly
out of harmony with costs. Else
where. accumulated stocks OF var
ious products must probably be dis
posed of before there can be any
permanent change for the better.
Liquidation of Credit.
Authorities now generally agree
that the liquidation of credit is well
toward its last stages. Recession in
the portfolios OF Federal Reserve and
member banks is apparently slowing
down. In the Southern and Western
districts. where there has been a
large body Of frozen loans. the
process OF settling obligations to the
banks is now going forward with
greater rapidly, due to the steady
marketing of the current crops and
that are decidedly better than those
which have prevailed for some time
past. This is conspicuously true for
the cotton region. where the unex-
pectedly low output has clearly es-
tablished a permanently better sell
ling price for the staple. even though
the extreme quotations consequent
upon the announcement of the gov
ernments estimate may not be sus-
tanned. as the experience of the past
week has shown. The influx of gold
to add TO the technical
strength of the banking system: and,
as long as II continues. seems likely
to insure a maintenance of rates no
higher than those now in force. Bill
holdings of the reserve banks in
creased 10 about $1.553,OO0.O0O, or
about $26. 100000 above last weeks
report. With loans Of member banks
greatly reduced. conditions are fav-
orable for n decided loosening of
credit during the autumn. and this is
clearly just beginning. Secretary
Mellon shows his belief in the better
credit outlook by hfs offer of $780,
900. 900 in new certificates of indebt-
edness and notes at rate Ia of
per cent below that fixed on the last
corresponding issue.
Railroads and Industrials.
All the evidence that comes to
hand is in favor of continuous i'm
provement OF railroad earnings.
President Harding's assurance in his
statement OF September that the
Railroad Funding bill will be adopt
ed at an early date after the reas-
sembling of congress tends material
~ to help the credit situation as af-
fectinE the various lines. This has
been reflected i'm better values for
the rails during the past week. The
suggestion to sell some $3.50. 900. 900
of car trust certificates bearing per
cent has not been altogether favor
ably received. there being a decided
belief that the securities are not
entitled to the low rate suggescd.
Difference of standing between the
certificates OF the several roads is
likewise to be expected. In traction
securities generally the situation is
distinctly more encouraging due to
the readjustment of costs which has
been in progress Throughout the
country. and which gives assurance
that the sound lines will be able TO
re-establish a balance i'm their budg-
cts. This better outlook is also in
dicated by the improved values of
bonds issued by public utilities in gen
eral. Better conditions in pig iron
production reflect a stronger condi-
"a