The Washington herald., 1921-06-12
BUSINESS AND ECONOMIC DIGEST
Business-TndustriaI Resume.

TIME general business situation has changed but
little in the past week. but new business mo-
raIe Is spreading through the country, spirit
evitazing enterprise being caught from the strong
esponse Of representative leaders in all fields OF
american endeavor 10 the administrations summons
Dr. courageous and confident, concerted attack upon
large domestic and world problems incident to
.merica's new leadership -
The consensus Of opinion held by leading figures
the business and industrial world Indicate that sta
uization and reconstruction are slowly but surely
pder way. well known investment security house
ith Offices in New York and Philadelphia, during the
ast week. prepared circular setting forth II reasons
r belief that great headyay has already been made
ward normal business. which as follows:
l. Business depression has been under way
seven months The country's business is that
much nearer normal
a Industrial railroad municipal and inter-
national financing aggregating billions has been
completed. The wealth Of the country has been
demonstrated by the fact that the bulk OF this
financing was accomplished during period OF
depression There will be additional financing
but majority Of the big corporations have been
relieved and are now in position to take care OF
enlarged business. s|s
4 Deiaton Of inventories has been going on
for slxs months Manufacturers are now in po-
sition to take advantage Of lower raw materials.
4. Tendency toward easier money. recovery
in exchange and increase in purchasing power
Of the dollar.
& Decrease Of $s34.oooooo in loans of New
York clearing house banks from year ago.
s. Reduction in commercial discount rate.
}. Cold imports Of $3I8ooo.ooo since first OF
the year. with exports of only $6oooooo
s Strong federal reserve bank position.
O. Steel ingot production down to 100000
tons annually. the lowest in many years and
about one-thrd of capacity
10 Unified orders Of United States steel
down to s84S224 tons, very close to low record,
based upon capacity.
H. Surplus copper being gradually worked
of as a result Of drastic curtailment
Il Many manufactured products selling at
cost or below.
IA Gradual restoration of confidence and no
longer any fear that the country is facing dis
aster. ,.-
"a Promise of good crops.
IL Wage reductions accepted without pro-
test BY employees of nearly all industries
10 Signing of reparation agreement which
viii facilitate international trade a
~ Determination Of administration to pro-
tect manufacturers against invasion of foreign
goods.
IS. Brokerage houses, with record low bank
loans, in a stronger position than in years. and
well able to take care of rising market without
strain Stocks were never so well margined.
TO- Many stocks are selling far below pre-
war levels on a basis of increase in working
capital alone since 1914 Scores of industrial
companies have either eliminated or made big
inroads on bonded debt, and spent hundreds OF
millions for new construction. .. i.
40 World shortage of goods. Lack Of
credit largely responsible for curtailment OF
buying. ..'
a. Determination of the administration to-
give the railroads square deal. Nearly one
half the population of the United States, indi-
vidually or through Insurance companies, saw
ings banks, etc., are interested as shareholders
~. :.