Evening star., 1921-12-04

OF business sentiment, as defined by
the closing weeks Of the year. it may be
said, Judged from the consensus ex-
pressed by leading banking institutions
Of the country. that there is prevail
ing atmosphere Of hopeful expectation.
Actual volume OF current business,
apart from that which is distinctly sea-
sonal. is not large, nor is there any in
dication that robust trade revival is
in the course of de> elopment. AS
matter Of fact the country's commercial
turnover is less than at the correspond
ing time in any of the past six years,
yet a spirit of optimism marks the pre-
dictions which are being made for 1922,
and affairs generally are being shaped
10 take advantage OF improvement that
is expected.
Bank Sees Confidence.
Touching upon these conditions. the
Mechanics and Metals National Bank
Of New York city says in Its monthly
report: Underlying the prevailing con-
fidence of financial America at large is
a consciousness that some OF the most
difficult steps in the progress OF domes-
tic readjustment have been accomplish
ed. The fact that commodity prices
have for the most part checked their
long and painful downward course and
have even in special instances I'M
proved from their lowest recent Level
is accepted as sign that the period OF
Severest defiation has run its course
"A re-employment of a part of the
army Of men made idle through lack
of work, an adjustment downward OF
wages to a level more in line with
the scale of prices and a relief from
the menace of perennial strikes are
factors which have helped to bring
Oh f,,l n n
there have been the evidences OF
progress toward cheaper transporta-
tion and lessened distribution costs,
toward more equable distribution or
taxation and toward a scale of ex-
penditures both private and govern
mental, far removed from the eXtrav-
agance that was lately rampant
Securities Markets n Guide.
THE securities markets have meas
urably reflected the significance OF
this list of developments, and bonds
and other high-erade investment is
sues have scored substantial ad-
vances. There are those who see in
the broad and active demand that has
developed for investment securities
an unfavorablc sign, as meaning
withdrawal of funds from the haz-
employment in securities of assured
strength. But the majority of OBJ
servers have chosen to see in the pres
ent activity and rising prices con-
sequence not alone of lower money
rates. but of a returning courage on
the part of investors, who lately were
not certain regarding the future of
securities and who now believe that
readjustment has progressed suffi-
ciently to warrant conservative buy
ing"
The report points out that not long
Il -,
were quoted on basis to yield per
cent and better. These same bonds
at current quotations return less than
5 per cent, while United States Treas
Try Short-term certificates have re-
gently been marketed on basis of
Az and Az per cent. Especially note
worthy of the change in the situation
is the improvement in liberty bonds
The largest issue of these-the A
per cent bonds of 191s-which was
quoted at s5I2 early in the present
ear. was within 212 points of par at
he close of November
Social and Political Feature.
It must be said that, apart from the
immediate considerations of business
and finance, general sentiment is be-
ng Influenced at the moment by con-
Siderations which are not directly re-
ated to the flow of trade, but which
nave. first of all. a social and political
significance. Especially does this ap-
ply to the international conference on
the limitation of armament, now in
session here.
A successful consummation Of this
conference, according to the senti-
nent of well informed banking cir
lies. is expected to have a far-reach
ing effect, for it will mean, it is point
d out, a long step toward not only
he moral but also the financial re-
generation of the countries which
have most suffered as a consequence
# the war
Especially gratifying to men of
finance is the minimum of delay that
has featured the sessions. 1.-THE
readiness of the delegates from each