Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-05-08
LOW INTEREST RATES, GOLD
IMPORTS ROUT PESSIMISM:
LESS JOBLESS, IS FORECAST
Lively Quickening Of
Business Is Reflected
in Reserve Bank Rlue.
Stock Market Activity
Mirrors Industrial Re
vival in United States.
BY HARDIN cOLFAx
Special Corresposdeat Of The Trjbsao,

epectaI COrrespoooent Of The Tibuao.
Copyright, 1921, by The Tribune.
Washington, May THE cut in
federal reserve bank interest rates, an
nounced within the week at such widely
segregated centers as New York, At
ianta and Chicago, comes to. American
industry with all the cheer Of a burst
of sunshine after a storm.
The lively quickening Of business,
which even the most casual of observ.
ers cannot have failed to note, has
been the immediate result The out
look today is the brightest since the
armistice was signed The skies of fl
nance and industry are clearing fast
Improvement Extensive.
May day came and went with scarce
ly ripple on the surface of industrial
conditions. For the first time within
a year. from banks, the railroads, the
farmers. the manufacturers and the
producers generally within the past
week have felt the Improvement. The
banks, standing like Gibraltar through
the storm, find the credit situation
tremendously better than it was 1
year ago. and money easier than it has
been any time for months. That n
one. reason why the federal reserve
banks cut their discount rates. An
other reason is found m the available
supplies Of gold which are sweeping
down on America It comes from
everywhere and government stfong
boxes are described a. literally almost
ready to burst from ito weight
Like Bleed Trassfsslse. - !.
Easier money has come Ike a -blpoa
TRANSMISSION to sick-abed industry. Il
means more money for legitimate en-
terprise and consequently. more Of
legitimate enterprise with resultant
improvement in employment and
market conditions.
The railroaders, taking stock Of earn
ings and income, also have taken fresh
heart for the future. A February de-
ficit of seven million dollars has been
followed by March net income Of m.
proximately thirty million Decisiyely
the railroad situation has turned for
the better.
Two reasons which stand out pro-
minently:
First. traffic has picked up: second
reductions in operating expenses are
developing. Still further reductions in
expense of operation are expected FOR
months. Here and there.
200, freight rates are being lowered on
rolume traffic between specified points.
A cut of three and one half cents 4
hundred pounds in export grain freight
.ates has stimulated business with the
'armer. The petition Of building ma
,erial producers for freight rate cuts
llso shows the trend Of belief thak
he present charges are too high for
ull and free development Of COM
nerce.
Wheat Jumps a. Csats.
Buyers from across the seas came
nto the wheat market during the
week in such force that the price of
70. !. red winter wheat has risen from
'1.47 on April 14th to $1.71 ar sea-
oard. Corn prices also went M.
With increased export shipments bet
er times for the farmer appear un-
ahad. Optimistic also,
as the government showing Of employ
1enr conditions, announced Friday
)fficials believe that April marked the
urn and that the next survey win
how healthy and noticeable improve
lent.
There is widespread belief that
Vail Street knows when better times
re coming and reflects its knowledge
! the stock market
However. that may be, certain il 10
hat q period Of increased industrial
ctivity is almost invariably preceded
Y a revival IN the volume Of trading III
locks. and general rise ID value.
10Th symptoms are here. After "
,g in travail for months the stock
larket has picked itself up without
ny preliminaries whatever, and start
/ upward. The volume Of sales has
zen larger ever since and values have
sen. The whole level Of prices u
gher.