Pueblo chieftain., 1921-12-27
Financial Conditions
(Henry Clewsl


Premier Lloyd Georges proposals for the cancclla
tion of allied debts have undoubtedly exeted strong
influence in this country One result of them has been
to suspend further with the plan of funding
which had been suggested in Congress This appar
emily the point of crystazng into law when Sccrc-
tary Mellon reached the conclusion that the proposed bill
did give negotiaors sufficient authority dis
cgss the question effectively and finally with foreign
representatives. However the holding of general
omic conference in Europe appears to be deter
mined upon and its effect upon foreign exchange and
thru that means upon all foreign financing has been
eorespondingly marked Meantime the Arms Conference
l. evidently drawing its close. Its accomplishments
are, on the whole regarded constructive, if
still lacking definition to their meaning.
Progress of the Bonus
Serious to the recent improvement in the
price of Liberty bonds well to general prosperity
has become apparent the shape of bonus propos
al which is apparently reaching advanced stage in
Congress Secretary Mellon would be moderatng
his opposition the idea upon condition that $780,,
100000 in taxes be rased-addonal to the
collected. In order to provide this larger amount,
form of sales tax has been introduced in the House
Of Representatives, the proceeds be used in paying
bonuses This is unfortunate way to apply the sales
ts1 and calculated improve its standing 1t
well be doubted whether s5oooooooo would be anywhere
enough for bonus payments the outcome depending
to the form of bonus they would prefer Under certain
conditions very large borrowing would become
unavoidable The effect of such action upon public
credit situation could not help being injurious. if not
disastrous has before it large programme OF
revenue legislation, including the tariff the bonus
proposal, ship subsidies and expenditures of various
kinds. If all should be done that is contemplated
by Congress and for which there decided support it
is certain that very much larger resort to taxation
borrowing would be unavoidable.
New Capital and Dividends
The restoration of some dividends which have been
suspended and the enlargement of Others of the
signs pointing better prospect for the coming
year Such a liberal dividend policy is fore
the chemical trade and is already making itself
felt in the retail trade. One illustration of the latter
tendency furnished by Developments in connection with
Associated Dry Goods and its subsidiaries during the
past week. When it is remembered that few
pane., especially among the railroads which had
dered the suspension reduction of dividends within
Ae past three months determined to continue their
nents, additional light is thrown upon the views of in.
dusrisl leaders with regard the financial future The
propect for better earnings is also illustrated by the
effort of few begin providing themselves
With equipment Application on the part of the Bur
nstou during the past week for permission issue $780,
100000 bonds the proceeds to be used in buying equip
rent, is incident in their general movement, but
forecast broad restoration of dividend payments dur
ing tn. year 1922 though the payments suspended
during lset year may not in all cases be restored
Foreign and Domestic Trade
The Governments figures for agricultural exports
made public during the week illustrate the
tendency of foreign trade toward reaction the large
majority of all staple commodities being distinctly lower
Thu. attention is called the necessity of
providing for of financing foreign trade
effective basis which will permit the continuous
growth Of business with foreign countries. Importation