The Washington herald., 1921-11-13
FINANCIAL WORLD
REFLECTS FEELING
yf'NEW OPTIMISM
Better Trend Energies
From Chaos of Mixed
Character.
EYEON WASHINGTON
Nations Expect Tightening of
Financial Problems at
Pending Conference.
EYE,ON WASHINGTON

NEW YORK, Nov. 12.-Since the
news of the week from the fnancia
markets has been of a distinctly
mixed character IL follows that tbs
evrdcnt feeling of optimism aross
from. thoughts of the impending
Washington conference. Such a re
action is perfectly natural. II thc
conference succeeds, as seems like
~. the financial burdens of all gov
ernments will be materially easec
Taxation will be lightened. a draf
on business will be removed. and
one of the principal causes of Gu:
Will. be. eliminated A great step
VIII have been taken IuN4 &,
stabfiiztng the worlds financial re
lationships.
In addition. a disturbing political
situation. that existing in the Far
East. will have been composed anc
the machine will have been set in
motion for the discussion and ad-
Justment of other international
problems. The by-products and
sequels of a successful conference
are likely in fact. to be among its
more important results. With an
agreement reached on the particu-
lar questions now at issue. the way
VIII BE opened for the discussion
or such practical matters as the
arrangement OF international debts
asd the adjustment of German rep
arationa
R~would be a mistake 70 assume
fowever. that a successful meeting
would lead to an immediate reviva
N QUIZ own trade or that Of the
word Existing business conditions
sreg tne, result of economical and
financial conditions that do not
change overnight Frozen credit. Al
not stnav In a day nor does purchase
ing power recover while we wait
An understanding at Washington
Is OF prime Importance but it,
enects will be felt in next years
rather than next months business.
In our, domestic markets recent de-
Neiopments have been to the disad-
vantage of the already suffering farm
En- Grain prices have rallied slight
~. but are still close to the bottom.
while cotton has lost a cent and ?
halt a pound on the accommodating
evidence that the governments
october, 3rd crop estimate was far
short of the probable yield. some
compensation is offered in the fur
ther- rises of crude oil prices. TAX
Ing the business position as a whole.
however. 1t remains an open oues-
ton as to whether We have reached
the height of a seasonal movement
or whether Improvement is to be
progressive through the winter.
british Commodity Priees.
An interesting piece of recent
foreign news is the sharp fall in
the Economists index number of
British wholesale commodity price,,
After several months of COMPARE
tive stability this index dropped
approximately per cent during
october. reaching the lowest poin,
since September. 1916. Part of the
tau undoubtedly is due to the i'm
prcvement in sterling exchange and
the moralization of grain prices.
Certain commodities. such as min
erals. have. however. been declining
consistently for several months. and
British trade reports sperk of lower
prices for steel products as a result
OF reduction in production costs. Are
we now to ente- period of sec
ondary price defia ion based on fur
Their wage cuts. lower freight rates.
ana the Ike? 1t Is possible. The
effect on business of such a move
"OtAh bCs uONtNtEs NdStly QlI-
ferent from that of the decline of
1870 Business could adjust itself
better to the smaller and more or
derby recession.
FLUCTUATIONS IN MARKS SUB
Wild fluctuations in marks mean
while point to another German crisis.
authentic details are lacking, but
the broad aspects of the situation
are'fairly evident TO anyone. Enor-
nous fresh prfntinSs of marks keep
the exchange value on the decline.
The condition Is aggravated. further
more. by the much-talked-of wies-
baden agreement since under the lat
ter the government must print addi-
tionsf marks to pay for the goods
delivered to France without being re-
lieved OF its other obligations to the
reparations commission. Rathenau's
attempt to start a reparations boom
on this kind of imitation merely in
tensifes the German financial gam
BILE.