New Britain herald., 1921-04-09
WEEKS REVIEW and
IMMEDIATE OUTLOOK
Henry CleWs, New York Financial
Expert, Gives His Opinions

situation nave Deen tne leduiHS
economic feature in foreign news
during the past week. President
Harding's decision not TO have the
United States become a member of
the League of Nations or TO ratify
the Treaty OF Versailles. as conf
municated to the French envoy nov
In this country and to the German
government, which had asked for our
assistance. has been the most strik-
ing factor OF the political situation,
The advent OF congress at the begin
ming OF next week should aid in clear
ing up some elements in our internal
tional policy.
The Railroad Situation.
While railroad leaders believe that
the low point both in volume of
freight and i'm earnings has been
reached. and while the March reports
OF some railroads show an improve
ment over February, the attainment
OF a definite basis for railroad opera
lions still remains urgent. President
Harding's conferences between the
managers and the employees as we'll
as his own inquiry fnto the revenue
position with the chiefs Of the ma
tional bureaus in charge OF railroad
supervision should result in adjust
expectation of legislative action. al
though the president will probably
state the existing conditions to con-
gress. Prosecution of the investiga-
ton already proposed by Senator
Cummins into railroad operating ex-
penses. is expected. A definite posi-
ton on the part OF the administra-
ton as regards the attitude to be as
sumed toward railroad wages in the
controversies now pending before
government bodies is likewise antici-
pated. Meantime the activity of the
roads In Improvement and repair is
necessarily limited--a fact which cuts
into the business of the railroad sup
ply companies.
Reconstruction Continued.
Reimbursement OF economic relation
ships Is still continuing. There was
fresh reduction of prices, amount
ing to perhaps per cent. during
March as shown by the reports of
commercial agencies. and according
to reliable figures the average level
of prices is now. down practically to
Is per cent above it's pre-war figures.
The staples which have most sharp
ly fallen were already at or below
pre-war levels and show no symp-
toms OF return to higher figures. This
applies TO such necessities as, cotton
copper and many others. The an
nouncement on the part OF the Steel
Corporation during the past week
that reports concerning fits alleged in
tent TO reduce prices and wages were
unfounded may mean merely that the
statements on the subject were
premature. Indications at most OF
the steel making centers are still to
hA off, ne hat IN
! be necessary in order to revive rail-
road demand or to stimulate very
greatly the purchase OF steel for use
In building. The number of indus
tries in which a moderate upward
tendency OF production and employ
ment Is noted has som ewhat increased
during the past few days, the silk in
dustry now showing a notable de-
| gree OF gain. while others continue
| to feel the effects OF better demand
| already exhibited.
Exports and Finance.
Plans projected by the administra-
ton for the relief OF the export git
uation took form in a conference on
| April which was shared in by rep
resentatiyes of the treasury the
federal reserve board and the war
| finance corporation. Staple produc-
Il
| were fully represented. The outcome
has been once more to pledge the
support of the war finance corporation
to the promotion OF export ship
ments, although IL In still held that
| american security must be given in
each case the government assuming
no responsibility for the obligations
| or foreigners. There is to be pro-
vision fot taking care OF banks which
have become overwhelmed with loans
| to producers who have been obliged
| TO carry over their stock from last
| seasons yield. The secretary of the
treasury has indicated how this may
DO done by war finance corporation
advances and the result may be 10
enlarge the lending power of the
banks with respect to the new crop
by furnishing n means OF relieving
them in some measure OF excessive
liabilities incurred on account of The
old crop.
| Market Review and Outlook.
Moderate trading has been the rule
practically throughout the week. Out.
| side buying power has been reduced
10 small proportions so that COM
paratiyciy little selling is necessary
| i'm order to bring about reaction from
time tn time. The increase in BEARS +
sentiment of late Is shown in the ur.
gent borrowing demand for stocks, 2
demand which extends TO nearly al
the active stocks on the list. IL ths
passing OF numerous dividends am
the admittedly bad railroad situation
do not cause any particular "un
loading" Of stocks IL is difficult "a
foresee anything that will Undue.