The Washington times., 1921-04-17
STEEL PRICE REvIsIoNs.


The most striking Industrial de-
velopment of the past week has un-
quest ionably been the revision OF steel
prices by the U. s. Steel Corporation
to an extent varying from about -
to about Is per cent of tho prices
which have been maintained during
the past two years.
The level OF values still remains
slightly higher than the figures Sc
by the Independents while In som"
lines. notably rails and wire nails.
there 10 no reduction.
Nevertheless the price cut is suf-
fcient to bring the prices of the Steel
Corporation into harmony. with the
average level established for whole
5ale prices as a whole so far as In
dex numbers indicate.
This revision OF prices Is not
isolated. but In only one OF several
other steps in important lines OF Ia
dustry which point to q dehnite set.
fling of the business structure upon a
new basis. Demand has notably in
creased in the automobile trade, while
textile industries continue to show
further growth In activity.
THE RAILROAD SITUATION.
1t continues to be true that the rat
Dad situation Is the sorest spot in TIE
present business organism President
Harding in his address to Congress
rightly referred to IL as a genera
source of difficulty and indicated Tho
necessity of reducing both rates and
expenses.
The current earnings statements
issued by the roads show a general
aeficit of over 1900. 900 for the monin
of February. while the ststem-n.
issued by even the Northern Pacinc
II al shA ct "A
tion Of over two-thirds from the
surplus earnings latter dividendsD of
q year ago.
Freight movements have not i'm
proved in any considerable measure.
Now that the Railroad Labor Board,
however. has abroEated the national
wage agreements the way should be
paved for q return to more normal
conditions. At any rate the outlook is
decidedly more hopeful and the board
is to be commended for its prompt
action.
FEDERAL LEGISLATION.
President Harding's message wisely
emphasizes revenue revision as the
foremost business OF Congress AL
though, IL holds out little hope OF any
actual Tightening of taxes save
through the repeal OF the excess
profits tax.
Senator Smoot. however, has
brought forward a plan for a simple
sales tax with a rate possibly as low
as 1 per cent which he believes Will
provide a substantial amount OF rev.
enue.
According to the figures given by
President Harding internal revenue
receipts must not be allowed to fall
below $4,000. 900 900. which Is prac-
ticaliy their present yield, SO that
whatever is done In the way or a
sales tax would practically have 20
take the place of the income received
from excess profits taxs at the pres
ent time.
There might be a certain relief due
to reduction Of Federal appropria-
tions consequent upon a policy OF
economy which although widely advo-
Gated seems to have only very mod
crate prospects OF success.
MARKET REVIEW AND OUTLOOK.
Trading during the week has been
on a moderate basis with attention
chiefly concentrated upon . few
groups of Issues. There has been a
pretty general disposition to sell the
steels, oils and tobaecos. while
more favorable attitude has been
opted toward shipping and copper
stocks and a number of industrial
shares which had previously been
roughly handled.
Little or no change has occurred in
general conditions. As is well known.
q considerable portion Of the daily
transactions are among professional
traders who for the most part are
stiT bearishly inclined.
The fact. however. that bad news
no longer makes any deep indention
on values 10 shown by the conspicuous
stregth in the coppers. With the
mines closed down and dividends in
most instances passed. the situation
could scarcely be more discouragtng.
Nevertheless there seems to be
demand for the shares Of the leading
copper companies by those who are
taking a long look ahead.
Thfs 10 the proper view to take
with respect to the entire market It
Is freely conceded that there are a
number OF discouraGing features with
which the market has to contend. but
II IL only a question of time before
these will disappear.
IL should be borne In mind that
the stock market has a habit of dis
counting nearly everything six
L. "a