The Birmingham age-herald., 1921-10-24
STOCK MARKET IS
 GOVERNED BY THE
 STRIKE SITUATION
Effects of Strike on Business Minimized By Probable Short Duration-Foreign
 Trade Improving
Ry TnEoDoRM U. rNICn.

Corp. I6 Exchange Place. New YoriS3 New York October 23.--t tSpecioL) 'The possibility of railway strike has overshadowed other happenings of the week to such an extent that early all the market news must be scussed in the light of the strikes connection with it. The securities ] arkets during the week have been l.erely barometers of opinion. re ecting by their fluctuations what people think as to the likelihood of a walkout and it's effect
 It is therefore encouraging to note that the quick recovery from the early decline in stock prices sup gOrts the conclusion which one must reach after an indepndent survey of the probabilities, namely that the tolly of such q strike and the cer tlinty of its defeat are so apparent even to the labor leaders that their threat will never be made effective. Nevertheless it is reported that in commodities such as textiles, whose distribution would receive u serious check from such catastrophe, pur- clasers have shown "a hesitation vhich has brought back the era of hand to mouth buying and tenn porariiy custailed market activity.
  the effects of such a strike on busi- aess would be minmized by it's prob Jble tncompleteness and short dura- ton than 1t is to debate whether ] will occur. Potentially it's capac- atS to disrupt the nations economic life borders on the infinite, but prac- TIcally there are many reasons why : Z would soon collapse, including the almost certain refusal of the less im- arf.x hssS.I NlDYs j oods. the announced intention of tho {; cvernment to run mail trains, the termination of the railroad eXecu- ! yes to have it out and their pre- 5aredness for a struggle, the almost niversal condemnation which the threat has received from public opin- ion, and the earnest efforts at com | romise which are being made as this Ss written. As a business factor l think that the markets have guaged accurately, q cause for hesitation ,nIy where hesitation can involve DO loss.
 oil shares Respond
 rt is becoming increasingly evident tSst the stock market cannot long xy~ held down by pointing to wreck tsse which has drifted ashore from ne past and Is all but cleared rom the stream. oil shares responded i rornptly last week to the steadily 5acreasing strength of the petroleum ,arket :, and to the fifth advance in q month in Pennsylvania crude. New .inapcing has been well taken and i,onds are firm, Improved earning ,rospects are reported from nearly sIl the leading industrial corpora g4ons and since most bankers are i, redicting that money will become t.tiu easier as the crop mqvemene 1iears completion the beginnings or j primary bull market Will pFonapiy De Tn evidence, when the WFlBnt oi 1" 'fne strike IS 1irteu
 The federal reservel system5s re- serve ratio of 70.3 per cent Is mucn The highest of the year. and both ,ediscount and reserve note circula- .ion are the lowest since the armis- rice. Talk of another cut in redis- count rates is persistent. The gam in gold holdings of the system reaches the astonishing total of S4f,- .no oon and the efforts of other na- tons to refill their money bags at ,ur trea sure house are redouolins.
 Peru Chfie, Argentina, Cuba and NTsxico are all active candidates TOT loans in this market, and In the case o4 Cuba the announcement or Soo'- paa.o 900 credit Is to be momentarily ,xpected. Otherwise efforts to heir our foreign trade are still unpro' ductive and reports of the outiook ahead of 1t still lugunriouesly suess she demoralisation of the excnanges .5rd the alleged truth that Europe IS consuming only 30 per cent of the .,oods she used in pre-war days. but Ike fact Is that despite the dtfficui- ,5ias in the way of buying the rest or 4ha world must have goods, and we are doing . much larger volume oi ,overseas business. mainly in 1oQds and raw materials, than those who fail to take proper account ot ene -r,oe decline believe. Out Of 20 ar st.,a, E~tad among our September axnorts. 17. and the most important nnes were shipped abroad in much .,reater quantity than in Septemoer n year ago, and the totai volume was s roughly equal to August
 sttu Prosperous
 finder such circumstances IL IS no' surprising that we are still prosper aus despite foreign troubles Inere grain of truth in the pratinss
 shasa who say we can not expect
 ao,ieta recovery until we recog-
 ;.a tho government of Mexico ana .,,ti, the central powers and Kussia s~a cain drawn into the worlds or sanization. nevertheless for crippies s,e are hopping into our automopiles end Pullmans and walking ih,o .ns .1in;nr rooms Of expensive hoteis with amazing celerity' The state of the world abroad ao- wanced more than it receded dur,ng fha week. The betterment of britisn Inaian export trade has actually lyawn. for the first time in many r,onths. an export shipment of goio from this country to India, normally great absorber of the worlds gold Silver made a new high for the cur rent movement of 7Sssc. connotng better times for far eastern trade. sterling exchange has crossed sS'so flor the first time in five months, ana other western European currencies nave been strong. while even the mark recovered to 6S cents per hun dred from it's low of 525ac. In New York the feeling seems to be gaining ground that the mark has passed its low point. and South America is buy inr actively. but as 1t is already ir- redeemable and the financial difficult ties of the German government are already so obviously insurmountable that 1t Is on the point of falling. am