Great Falls tribune., 1921-12-25
By STUART p. WEST,
Special CORRESPONDENT of Great Falls Tribune
Copyright. 1921. The Great Falls Tribune


New York, Dec. 24.-The check this
week to the upward movement in the
financial markets - simultaneous in
stocks, bonds and foreign exchange
has not implied any serious change in
opinion in the general outlook. It
may have significance, that Wall
street, in the advance during the first
half of December had allowed itself
to become bit too enthusiastic over
the prospects for 1922 IN certain lines
of trade But mainly the decline was
the normal readjustment which mar
kets invariably have that long move
continuously in single direction.
In a word, the stock market has
had the reaction which it was en-
titled to after month Of almost un-
broken advance, The bond market
has fulfilled the expectation that it
could not keep moving ahead in face
of the competition of such a outpour of
new capital issues as has been going
on now for five months.
Improvement In the Exchanges.
In the exchanges the speculative
element has counted as it has in
as has occurred from the high levels
of fortnight ago has been merely
technical readjustment. 1t has in no
wise taken away from the reality of
the Improvement in European finance
signified by the advance in sterling
from around $500 in the middle OF
November to above S4,20 and the re
covery in French exchange in a still
shorter interval from 600 cents to
the franc to $50 cents.
Lsssened Activity in Metals.
The lessened activity in the various
markets is quite in keeping with the
x,11 Il IN, h,,et
paratory to the end Of the year.
The active production of the steel
mills is off about 5 per cent from the
maximum of a month ago and prices
of some of the lighter products, such
as wire and wire products have been
cut again. Dullness has settled over
the copper trade, while some of the
automobile companies have been clos
ing down plants, as they regularly DO
taking, But whether it is steel or
copper or automobile making or oil
the forecast for 1922 among the gen.
eral RUN of businessmen is altogether
hopeful Nobody looks for a boom,
but the idea mainly expressed is that
the recovery which was Interrupted IN
December will be resumed in January
and will gradually continue until It
eventuates into a period of normal
production and moderate but reason
able profits.
Lower Costs Necessary.
stae. Al il IN Ts sSs nas a the the fttsfn OBJ Of
profitable conditions in industry is the
inability to bring about a thorough
enough revision of labor costs. The
principal difficulty in the path of wage
reduction is the cost of living prob
lem and as everybody realizes, the rea-
son why more progress has not been
made toward a solution is that the
deflaton of wholesale prices has not
been passed along to the consumer,
but that middlemen and many retailers
have been getting an undue benefit
Federal Investigation Welcomed.
A campaign of investigation, with
view to publishing the guilty ones
has now been projected by the de-
partment of justice. 1t ought to have
been undertaken long ago, but coming
even at this date it is most welcome.
II this crusade accomplishes it's OBJ
ject, in bringing to the public the full
advantage of the decline In agricul-
tural prices it will be the greatest
single accomplishment conceivable in
the way of helping the business COM
munity back to good times.
Buying Power Increased.
Next to setting satisfactorily the
cost of living question, the thing most
to be desired is a return to better
conditions for the farmers, upon whose
buying power SO much depends for the
cOuntry's domestic trade. In this dl-
rection the developments Of the best
week have been definitely favorable.
In cotton, the shock occasioned by
the discovery of the tremendous ex-
aggeratinn of the crop shortage has
been more than counteracted by the
improvement in trade demands both
here and abroad. In wheat, Europe
has come to realize that it has been
over estimating the crops Of 1922
and that it is not as independent OF
the American surplus as it had sup
posed itself to be two months ago.
Export Demand Revives.
The revival of the export demand
has given the wheat market the most
encouraging appearance that it has
worn at any time since late in the
summer The big autumn movement
from farm to market Is over. 1t has
been unusually heavy and has drawn
down farm supplies exceptionally far.
The grain trade is beginning therefore,
to get the reaction from the state of
almost panic in which is was thrown
in the autumn By what now seems to
have been uuwarranted reports of tre-
mendous oyersupply.