New Britain herald., 1921-06-25
WEEKS REVIEW AND IMMEDIATE OUTLOOK
Henry CleWS, New York Financial
 Expert, Gives His Opinions
Especial to The Herald.D

to be practically the end Of the Brit ish coalstrike is not manifestly in sight. The main result of the strug- gle has been to give France an op- portunity of meeting current coal demands in Europe with German reparations coal, while the miners in Great Britain have evidently sue cceded in no respect in carrying their point. Progress toward a dis armament a conference is clearly being made by our own and other govern ments. with resultant economies evidently the more possible on that account. In our Mexican relation ships, we continue to face the same embarrassment as heretofore, with but little disposition on the part of President Obregon to relieve the sit uation.
 Business Recovery Delayed. Conditions continue unsatisfactory in many lines of business, for while there has been an increased buying strength ir those branches where prices have been sufficiently reduced, this increase has not apparently been the result of permanent demand. Continued reduction in our export trade shows that but little if any, improvement in foreign sellil x condi- tions is in sight. The reaction .n prices has. however, been apparently checked. Index numbers published during the past week have shown a reduction of not more than about one half of I per cent during May. This is much the smallest fall for any recent montl. The unfortunate fea- ture of tho weeks trading has been seen in a downward movement of in- dustrial securities. consequent upon the apparent development of belief on the part of observers that still further reaction in industry was likely to take place.
 Monetary and Banking Problems.
 The monetary and banking situa- ton continues 10 develop along the same lines as in the recent past. With a very great reduction in dis counts at Federal Reserve banks. and with an increase in the amount of gold over last years holdings, now equal to almost half billion dollars, the problem of Federal Reserve bank policy and of banking policy as a whole becomes mo'C and more urgent. Accumulation of the gold in the Re- serve banks tends to stimulate the belief on the par! of many that it should be released through d more liberal credit policy which would not only permit. but encourage, the rela- lively free borrowing of funds at hanks. Others think that the gold should be rapidly paid out into cir culation. while still others hold to inc opinion that measures should be taken to preve1E.thc further importa- ton of gold. ~ is certain that the fE.fh hWNr- 1llN. N.-&- -l,.. l. serve holding banks and the public must be modified before great while. In the meautime there has been much better supply of call money.
 Market Review and Outlook.
 With large transfers on the ex- change nearly every day during the past week the trend of prices has been. on the whole. downward. The week opened with quotations we'll be- low the average of last December, so that there was a prevailing opinion that the reductions that had occurred were ample to discount bad condi- tions or bad news whatever ii might be. The inability of both large and small holders of stock to protect their ownership has necessitated a considerable amount of involuntary liquidation. In the main, however, investors and spectators are aware that the opportunity of purchasing stocks at prices hardly more than one-half of their normal value is an unusual situation. Ease in call money has not served to help price conditions very pronouncedly. and until there is more decided trade inn provement buying power will no doubt be considerably limited. 1t would seem, however, that on down ward movements hereafter it should be possible 10 make purchases with out encountering much risk.
 HENRY CLEWS.