Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-11-21
BETTER DAYS
JUST AHEAD.
VIEWS AGREE.
Rising Tendency in Stock
Market Shows Way Wind
Is Blowing.
Special to Indiana Daily Times
and Philadelphia Public Ledger.
Rv MONITOR


NEW YORK, Nov. 21.-It probably
would take a confirmed optimist to as
sumo that the rising tendency in the
stock market that has been moderately
but plainly in evidence for about seven
weeks is by way of discOunting better
days ahead. Investment securities have
gained substantially in price. and the gen
eraI average of stocks has climbed ap-
probably as well. The recovery has taken
place in the face of strong counter in
fiuences. and unqUestiOnably has been re-
garded by many students Of conditions as
n minor upward swing instead Of the first
phase in a major advance.
The influence responsible for the i'm
prOvement is represented primarily by the
betterment in the money situation, al
though the revival in certain industries
and the expectations formed Of the out
come Of the disarmament conference have
been additional factors. There is every
reason to believe, however, that the two
latter elements are of minor Importance
and that the chief impulse ior the rise
in securities has been derived from the
prospect of cheaper money. The decline
in rates and the growing abundance of
funds may be the result Of business stag
nation, but they nevertheless have as
surance Of stable incomes.
All likelihood of j money crisis in this
country IS believed to be past. No other
conclusion could be drawn from the ire
mend0us reduction in bank loans, the
increase in gold holdings and the limited
credit demand. On Nov. . the loans of
$50 banks of the Federal Reserve sys-
TEN stood at 81. 39S 359 coo, a decline of
nearly four and a half billions from the
peak reached in October. 1920. Present
cash reserves are now s.. 1909 46S,000. and
Of this amount 81, SOB 901 600 is represent
ed by gold. The reserve ratio stands at
us, a gain of approximately IS points
over year ago.
In view Of this improved financial sit
uatiOn in thu United States, there has
been a disposition to believe that the
advent Of prosperity is at hand. These
hopes have been colOred to a mild extent
by the recovery in certain liQuidated in
dustries and the rise in the prices Of oil,
copper, rubber and cotton. Steel pro-
duction has increased considerably from
the depression Of 4 few months ago.
1t is only fair to say that some very
close students of the situation do not
share this optimism. They see no essen
tiaI change in the fundamentals that at
present are making for continued de-
preston. N1aladjustment has utterly up
set the equilibrium necessary to provide
n free flow Of products from one pro-
ducing group to another, and until this
Is corrected industrial activity cannot
proceed on a healthy basis.
The formula for continued depression
Is perfectly simple High industrial
wages and low prices for farm products
do not make for general prosperity. The
low buying power Of the farming COM
munity restricts the demand for indus
b.. fr~, Sc
found in a lessened demand for raw ma
teriaIs. 1t is difficult to see how the
prices for farm products can be ad-
vanced materially In view Of the low 1ur-
chasing power Of Europe The readjust-
ment therefore, must come from the
part Of the industrial labor. How many
years this viii take no one can tell, but
its c0nsummation, in the opinion OF
leading thinkers, viii mark the begin
ming Of n sound recovery.
Politics both domestic and interna-
tionaI. complicates the situation. The
action Of the House in adopting the 80
per cent sur tax rate reflects a dema-
cogic spirit that is far from encourage
ing. Many disappOintments are likely to
be met before the railroad funding bill
provides needed relief to the railroads.
It would be futile to predict the out
come Of the disarmament conference. The
world is merely hoping for the best. For
ciCn exchanges have been stifened by the
suspicious beginning. Great Britain's
finances are improving.
Those Of France depend on two things
German indemnity prospects and the
adoption Of a sound taxation policy that
viii balance the Gallo budget. The lat
ter is probably the more important in
the long run. Unless It IS accepted by
the French people there viii be recourse
to paper imitation and the franc prob
ably will follow the course Of the mark.
To what extent these cOldly economic
views will be upset by the abiding OPP
timism Of the peoples Of the world and
that unknown factor represented by the
capacity Of humanity to extricate itself
from seemingly hopeless catastrophe. are
clements 10 be considered with hope.
Economic theories frequently are nulli-
fed by the human eQuation.-COpyright,
1921, by Public Ledger Company.