Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-09-19
PRICES FIRM IN
FACE OF SEPT.
TAX PAYMENTS
No Ugly Market Reaction, De-
spite Reports of Large
Delinquencies.
GAIN IN RESERVE RATIO
Special to Indiana Daily Times
and Philadelphia Public Ledger.
G RV MONITOR

G BY MONITOR.
NEW YORK, Sept. 19.-Although price
movements in the security markets have
registered no concrete evidence OF sub
stantiaI improvement in sentiment, there
is no doubt that the firmness displayed
By the market may be taken as an idex
for growing optimism. For one thing,
the Sept 10 tax date was negotiated
without ugly reactions despite the fact
that the deliquencies in payments are
reported to have BEEN quite large. A
further gain in the Federal reserve ratio
to the basis of 675 reflects the influence
of continued gold imports and the &C
erection of funds resulting from COM
modify liquidation which, in the case
Of certain agricultural products, is being
accomplished at fairly satisfactory
prices.
The air of gloom and pessimism is
rapidly disappearing from banking cir
Giles. In fact the head of one of the
largest financial institutions, who re-
turned last week from a real vacation
which had Put him out OF touch with
current Developments, stated day or
so after a survey of existing conditions
that he was utterly amazed at the change
that had taken place in a period of three
weeks.
BUILDING
UNDER WAY
Evidently this new atmosphere of
cheerfulness should not be confused with
the forced sunshine movement of last
winter, when it was argued that psychol-
ogy would remedy our economic Ills.
There are too many signs of improve
ment on all sides to assume that a safe
of mind is responsible for the transfer
nation. For one thing, building opera
tions at last are under way and the effect
has been pronounced not only in the in
crease Of employment, but in the demand
for all classes of material. Lumber
prices are sharply on the rise with ad-
vances of S to 10 per cent in the last
month. The demand is on a very large
scale.
1t is probable that the more favorable
outlook in agriculture has been a strong
contributing factor.
There is much sound econoIAic wisdom
in the following statement attributed to
an official of one of the farm Organiza-
lions:
prosperity comes from the profits on
production put into circulation. Fully 75
per cent of these profits must come from
the farms. When farmers and live stock
growers get profits. they cheerfully spend
t csc and the public gets the benefit Of
them"
TEXTILE INDUSTRY
GAIN CONTINUES.
The textile industry continues to gain.
The census bureau report on the amount
CT cotton consumed in August By Ameri
can mills placed the amount at $4,000
bales against 10000 in July and 4S3.OOO
in August last year. The August con
sumption is at the rate Of 5,600OO0 bales
per annum, compared with 4 total con
sumption of I ,SS7 100 bales for the season
which ended with July this year.
While it is stimulating to note these
Signs of progress. it is also SOLDERING to
take account Of the problems still 10
be solved. Railroad rates are very high,
and there is insistent demand for 4 re
duction. The roads undoubtedly would
be glad to cut their tariffs if they could
obtain a corresponding reduction 1E
operating costs. 1t is suggested that If
a IS per cent wage reduction would he
agreed to by the men. the carriers world
institute lower schedules and at the sama
time take on a greatly increased force Of
men This would be = great forward
step, and it's benefits would be manifold
It would mean increased employment,
larger aggregate wage payments, lower
costs for the railroads, decreased over
head, probably increased tonnage and
lover rates for the shipper AMI the
travelling public. A further reaction
would be found in reduced living costs.
Copyright, 1927, by Public Ledger Com
pany.