New Britain herald., 1921-04-16
WEEKS REVIEW AND IMMEDIATE OUTLOOK
Henry CleVs, NeV York Financial
 Expert, Gives His Opinions
tsp.slai ,s Tn. Herald

New York, April f6.--The construc- tive and helpful message to business contained In President Harding's opening address to congress on Tues day last shows that prompt and viz orous effort Is 10 be made to remove some of the handicaps under which domestic commerce is struggling. Tho message is to be highly com mrnded for It's conservative tone and for pointing out the need Of remedies to be adopted to bring back normal conditions. This will necessarily tskc time as tho problems to be solved are serious, but we are nov ing in the right direction. Such a prospect and the evident intent of congress- to act promptly as we'll as somewhat further brightening of the industrial prospect have made the week a more hopeful one In financial circles. Latest advice@ from Great Britain regarding the threatened tic up Of the transportation interests to aid the striking miners, are also more reassuring and hopo is now held out that the labor question on the other side will soon be settled.
 Steel Price Revisions.
 Tho most striking induskrial de- veIopment of the past week has un-
 
 prices by the U. S. Steel corporation to m extent varying from about 10 to about ls per cent of the prices which have been maintained during the past two years. The level of values still remains slightly higher than the figures set by the inde- pendent- while in some lines. not ably rails and wire nails. there is no reduction. Nevertheless the price cut is sufficient to bring >he prices of the Steel Corporation into har- mony with the average level estab- 1ished for wholesale prices as a whole SO far as index numbers indicate. This revision of prices is not isolated. but is only one of several other steps In important lines of industry which point to a definite settling of the bus insss structure upon a new basis. Demand has notably increased in the automobile trade. while textile in- duetries 1continnc 10 show further growth in activity. n@~
 The RHiiroad Situation.
 IL continues to be true that the railroad situation is the sorsst spot In the present '0 siness organism. President Harding In his address 10 congress- rightly referred fo it as a general source Of difncuity and in- dicated the necessity or reducing both rates and expenses. The cur rent earnings statments issued by the roads show a general deficit Of over t7.0o0.0Oo for the month of Febru- ary. while the statement issued by even the Northern Pacific Railway company shows net reduction Of over t~o-thirds from the surplus earnings fafter dividends) of . year ago. Freight movements have not improved In any considerable meas urc. Now that the railroad labor board. however, has abrogated the national wage agreements tho way should be paved for a return fo more normal conditions. At any rate the outlook is decidedly more hopeful and the board is 10 be commended for its prompt action.
 Federal Legislation.
 President Hardins's message wise iy emphasizes revenue revision as the foremost business of congress al- though 1t holds out little hope Of any actual frightening of taxes save through the rebeaI of the excess profits tax. Senator Smoot. however. has brought forward . plan for simple sales tax with n rate possi- bly as low as per cent which he believes will provide a substantial amount Of revenue. According to the figures given by President Harding internal revenue receipts must not Dc allowed to fall below s4o,ooo,oo0.00 900 which is practically their present yield. so that whatever is done Tn the way Of n sales tax would practi- csiiy have to take the place of the income received from excess profits taxes at the present time. There might be a certain relief due to re- duction of federal appropriations con- sedu.ntl upon a policy of economy which although widely advocated seems 10 hsve only very moderate prospects of success. The intrcduc- tion of tho emergency tariff and bill has been practf. l csIly simultaneous with the offering l Of similar bills in Great Britain, so | that basis for tarifr warfare has l been laid.
 Public and Private Interest Raaes-
 Adoption by the British treasury l Of the plan Of placing treasury bills l through bidding rather than through l at . fixed rate of inter l est is by some believed to foreshadow l a reduction Of rates for such bills | which would be tantam ount to the | lowering of the level of interest fn | the British market. The expected l cut m the bank rate has not mater iaiixed. \ fact which is aScrfbed by | some 10 the disturbed conditions | growing out Of the strike threat. | Nea ufima the increase Of the frd-