The New York herald., 1921-04-11

FINANCIAL NEWS
AND COMMENT
British Labor's Decision for a
Great Strike Shows It's Ef-
feet in America.
STOCKS SALES NOT HEAVY
Few Investment Holders Let
ting Go-Siens of Better
ment Continue.
STOCKS SALES NOT HEAVY
ny WILLIAM W. CRAIG.

BY WILLIAM w. CRAIG.
The shadows which all along have
obscursd tho business and financial out
look became somewhat darker last weel;
despite an easier situation OF the money
market Evidences Of Improvement
seen a fortnight before in particular
lines OF manufa cturing We're submerged
in fresh indicat tions OF inertia in the
steel trade. while the pressing railroad
situation appeared TO be no closer To
settlement OF labor controversies than
the week before. The relations OF busi-
ness and finance are international;
hence It was inherent in the decision of
British labor for great strike that
it should cause sluggish and uncertain
markets IN the United States.
1t is to be said, however. that nothing
has occurred to reverse signs of bet
terment seen of Late in securities and
in sentiment toward the future OF trade.
Strikes come and 90; they retard pro-
duction, but they do not destroy indus
tries. It was realized long ago. when
the struggle began to undo a vast In
flation of prices. that the movement
back to a normal situation OF credit
and credit cost would be marked by a
slowness of progress which would be
disheartening at times. but, neverthe-
less. persistent.
The fact that several declines OF
money rates to relatively low levels
have not been maintained is Of slight
moment against the greater truth that
since the peak OF last November was
reached Federal Reserve Bank loans
have fallen more than s5O0Oco. 900. or
close to % per cent, while the major
note circulation has receded more than
$4o0, 100000 and aggregate reserve has
increased by about $4,000 0O0 And the
gold reserve, added to by shipments
from other countries, has expanded
500, 200, 900 in five months.
Caution Is the Watchword.
Inasmuch az the immediate prospect
Of industry and trade is difficult to de-
fine the tendency of bankers and busi-
ness men is. naturally, to try to see
what lies further ahead. In this connec-
ton the matter OF the rapidly growing
gold holdings Of the country is worth
some attention. With prices continuing
inclined to contract It is clear that the
expansion OF gold stocks is not stnauiat-
ing any sort of imitation. The so-called
gold menace" Of which much was heard
during the vast inflow of 1915. is not
troubling anyone now. But the time will
come-when Europe has straightened
out present troublesome political diff
culties, when stable conditions strength
On the credit of various foreign coun-
tries--when American gold will be OF
vast influence in restoring world trade.
Much OF this gold. or its equivalent,
will iow away from US. But before the
actual metal goes forth again II is likely
to be used as the basis of credit lent to
foreign borrowers. II is not too much 70
gold supply the greater will be the
obligation of the United States TO insure
borrowers OF accommodation when they
apply for il. This, however, is anticipat-
ing the solving OF grievous problems
overseas. with especial reference to that
entailed in the settlement of the Ger
man reparation which, it is evident 10
everybody, Is mighty slow In solution.
In respect TO matters OF current mo-
ment there Is. plainly. the need for pa
tience. A fortnight ago the steel In
dustiy was made 70 look better than /,
had been since last December BY pur-
chases by automobile makers and con-
struction companies: yet the end OF
March saw pig iron production running
at the rate Of no more than 5000. .0oc
tons a year. In one month last year
blast furnaces were turning out iron al
the annual rate OF 41.o0o.000 tons. The
Republic iron and Steel Company, lnd-
Ing that 1t is no use quoting prices
which would entail operations close tc
cost and no profit basis, advances GER
tain OF its prices. The pig iron figure:
show that steel manufacturing is dwin.
ding rapidly--the countrs's ingot out.
put in March was less than half the
total in March oc last year. Copper
sales have declined so far that a great
portion or the mines hsvc been closcf
pending tho distribution os accumulated
stocks.
/ slump Minus Big Selling.
These are gloomy facts, but il should
be noted in connection win the slumi
OF two OF the country's leading indus.
tries that the more recent stages hay,
rot been accompanied by heavy SELLING
of securities. Nor has the Impoverished
situation Of the railroads promoted grca
! liquidation Of railway stocks and bonds
True. prices have lost ground In ID,
last six weeks. but the volume OF bust
ness recorded on the markets has baoi
relatively small.