New Britain herald., 1921-07-30
WEEKS REVIEW AND. IMMEDIATE OUTLOOK
Henry CleWs, New York Financial
 Expert, Gives His Opinions
Especial to The Herald

< New York, July - 3O.-President Harding's announcement of a compre- hensive financial plan for the disposal of pending railroad questions, for handling problems relating to- the ex- portation of cotton, and for rural credit generally, has been the lead ing constructive element in this weeks development. The plan, as announced, will put no new railroad burden on the treasury department except that of temporary financing, but should result in relieving the railroads to a very considerable extent. What rail road investors think of the suggestion is shown by the renewed strength of the rails and the fact that the public is again exhibiting genuine interest in them. The announcement furnishes additional evidence of the presidents disposition to do what is feasible in aid of business
 Preparing For Better Trade.
 That the country is preparing for. a very much better trade situation in the autumn there can be no question. This is the general opinion both of industrial and commercial authori- ties, practically all of whom are agreed that indications now favor distinct even if modest upturn in the volume of business at the opening of the coming autumn. It is not to be denied that in the meantime there is still more or less adjustment to be effected in certain lines before the situation can be regarded as normal; additional dividend suspensions this week make this clear. It should be remembered, however, that these are merely the leftover results of past de- pression which is now made known. Both in the steel and leather busi- ness the outlook for the coming months is decidedly improved. In other lines also the better conditions which had been developed during the spring have been maintained. This is notable in textiles and other immed- lately consumable goods. Revival of building is responsible for better de- mand for certain classes of steel pro- ducts and if present expectations are realized the railroads, which consume nearly 50 per cent of the steel output, ought shortly to be in position to materially increase their orders.
 Strength of American Position.
 Figures compiled by the Federal Reserve board show that decided progress has been made in restoring normal position in banking and cur rency. This progress compares most favorably with what has been done in other countries, the United States standing almost alone in it's success in restoring a sounder financial position. Wage and other industrial figures also show that costs of manufacturing are being reduced, and although costs of production are still too high, particu- larly in the labor item, they are re- ceding. The result should be to place the United States in strong com petitive position internationally, and to enable it to sell in markets where foreign products have in years past held their ground. The supposed advantage obtained by countries of low exchange will not be permanent. American exporters may therefore safely look forward to early restora- tion of their foreign business on a moderate scale provided that satisfac- tory credit is extended to buyers in other countries. The furnishing of such credit still remains one of the principal problems to be disposed of.
 Clearing Up Difficulties.
 Completion of the sugar financing for Cuba Cane during the past week is the first important step toward definitely ending the difficulties which have grown out of the Cuban sugar crisis. That government as- sistance of some sort may be needed before there is complete restoration of normal conditions in Cuba is the prevailing belief. This, however, is now in a fair way to be afforded, the government furnishing at least a gem eral moral support for American bankers in the advances which they are expected to make to the Cuban Alt the same. time ac- ;ttou ofssnnn0n Der ot tha st ranaAr.