The Washington times., 1921-07-25
Favorable Developments.


Nearly every major DEVELOPMENT
continues to be distinctly favorable.
That firm foundations are being laid
on which to rebuild prosperity is
becoming manifest to even the most
inveterate pessimists.
Some OF the recent momentous de-
velopments have been more ado.
'quately understood by farsighted
leaders than they have been by the
rank and file.
The latter know that both industry
and the security markets have con-
tinued quiet. and they are. therefore,
not greatly influenced by undercur
rents which have not yet been re-
Elected on the surface.
Among the latest encouraging de-
velopments may be cited:
The hearty response OF the leading
foreign powers TO President Hard
ing's invitation to confer on reducing
ornaments.
The getting together Of the high.
est British authorities and the Irish
leaders. incidentally, although the
published reports have been rather
disquieting, private advices from the
most influential sources justify
optimism over the final outcome.
Germany has made notable prog
ress in arranging to meet the large
reparation payment due on August
81. Her ability to find funds Is
causing qualification In the highest
financial circles.
Conditions In Britain have bright.
ened since the ruinous coal strike
ended Unhappily, the situation in
various countries still leaves very
much to be desired, yet 1t can ct
1aaSf hA said In ha
whole, is in the right direction.
Call Money 8 Per Cent.
Call money closed the week Mt 8
per cent on the New York Stock
Exchange, and loans were available
outside the institution at 4 still
lower figure. This is not very i'm.
portant In itself, but Il reflect. the
marked betterment in the monetary
position.
The Federal reserve banks at the
leading centers have wisely reduced
their rediscount rate TO 81 per cent
an example Immediately followed by
the Bank Of England
The reserve ratio for the country
now stands at 631a per cent. After al.
lowing the required 35 per cent
against deposits. the reserve exceeds
80 per cent, an extraordinary showing.
Under these circumstances there
viii be no adequate excuse for bank
ers applying the screws still further
to legitimate borrowers from now on.
The Federal Reserve Board has psss.
ed round the word that It would rath.
.er see bankers utilize the facilities
offered by the reserve banks than
see further handicaps laid upon bust.
ness. with a consequent increase in
unemployment.
Theories sometimes have to give
way TO actualities. This Is n time
when 1t Is infinitely more important
to help the country and help the mil
lions Of unemployed wag. earners to
get back on their feet than II ia to
enforce avoidable deflation for the sake
OF piling up hank reserves to absurd
ly high heights.
Our agricultural population are
making very substantial progress I'm
reducing their indebtedness to banks.
Moreover. the arrangements now be.
Ing made to supply financial relief at
certain points in the South and in the
cattle growing districts are doing some.
thing to revive courage where revival
has been sorely needed. Here, also.
theoretical objections may be raised
against governmental interference"
but conditions warrant Reasonable co.
operation by the Government to
tighten the unduly heavy load which
has fallen upon the classes upon whose
energies and output all of us depend.