New Britain herald., 1921-03-14
ALLIED-GERMAN
 ROW IS SERIOUS
Henry CleWs Regards It as
 Putting 0ff StabilizatiOn
6Sreciai 10 the Herald. }

tory by France. with a threat 10 col-
 lect customs duties and seduestrate
 them as we'll as perhaps to seize a
 part of German exports. have been
 tho significant developments in the separations struggle. Our market
 has pcrsistently refused to regard this breach as anything moro than temporary episode in the game which Germany has been playing for reduction of payments. This is shown by tho comparative hrmness of exchange and foreign government bonds. Tho situation. however. is undoniably serious and final adjust ment on a workable basis seems to be correspondinely deferred.
 Tariff and Taxation.
 President Harding's administration has lost no time in getting to work on pressing economic questions. The president has announced that he will call tho extra session of congrsss for some date between April 1 and the middle of tho month thereafter. and that tho leading business to be deaft with will bo revision Of the tariff and revenue laws. There is still difference of opinion which Of these subjects will be assigned the commanding position. There is also difference of opinion as to tho best substitute to be adopted for the present excess profits tax but sssurance is given that tho session will not fail 10 act definitely on the modification Of our tax system. Among other subjects of financial importance which fl has become plain will certainly receive at tention arc h betterment of railroad both as to rates and wage the definite ending of the present condition of war with by tho adoption of the Knox resolution or some similar measure our belligerency at an end. and probably bin providing for a definite budget system. All of these factors should be of considerable inn portance in producing a favorable effect upon the general market out look.
 Inc Treasury situation.
 Secretary Melons letter addressed to bankers in which he outlines the treasury position makes more hopeful showing than had been ox- pccted. Mfr. Mellon believes condi- tions to he fundamentally sound. He thinks. however. that rigid economy and steady saving will be necessary In order to maintain this satisfactory outlook. Assuming that these req lisites can he secured. he forecasts m income tax payment on March i5 which would be sufficient 10 cover maturitieS and interest. or about s5ee. 900. .ooo. With this snd Inc second instaiment due about three months later h ebeiieves he can cover current requirements and leave , small surplus for tho fiscal year. IA ,ates of indebtedness represents cates which are falling due. That investors arc now holding from 90 10 s5 per cent Of all outstanding certifi- ,ates is n fact stated by the score isry Of the treasury which clearly I the success that has been had in eliminating war paper from | banks.
 Banking and Business.
 With n world carryovcr of cotton I estimated at io.000.0o0 bales and a stock of grain on the farms on March l l, estimated by the department of | agriculture as the largest for many | ears. wheat being eo1.5oo.0o0 l bushels. or 26 per cent. higher than | year ago. it is natural that bank l nr Improvement in tho farming dis | ricts has been slow. Products have 1 n loved ms fast as there was any sale | or them. but the large output of last l 'car left a surplus which had to be | ,arried at some point, and has in fact l ,een carried on the farms. This ac- l 'ounfS for slownea~ Of liquidation in he interior and affords a reason why | ,a hiking conditions have not inn proved faster and why the volume f credit has continued go large. readjustment is evidently in progress as indicated by the continu- ,us though moderate dropping of prices with additional re- adjustments in retail prices. Tn hese circumstances and with increas- naiy heavy demands from customers which they cannot fully satisfy. the | ca ntiness Of investment funds in tho ' market is easy 10 understand.
 Railroads and Indu<trials.
 The poor showing Of railroad earn 1 ngs which has been made for some ' imo past has continued and operat- nR results for recent weeks will un- loubtediv show on tho average even 1 over returns than tho latest that nave bcen made public. This affords sound basis for wage reductions Of arying amounts announced by tho