New Britain herald., 1921-10-15

The 'least satisfactory phase of the situation is seen in connection with unemployment, which, although re- lieved at some points, is still acute l at others, while it has apparently not undergone much improvement in Great Britain
 A Stronger Banking Position.
 The continued improvement in the banking position has now extended itself practically throughout the coun- try instead of being localized to the extent that has been true in former months. This advance in lending power is partly, of course, the result of the growth of reserves brought about by the flow of gold into the United States, which, however, has now been checked, Thursdays reserve statement showing a decline in gold. Developments in the past week or ten days, however, make it plain that the improved conditions are now in an
 important way the outcome of changes in the loans of the various
 banks. The Southern and South western banks of the Reserve System have become much less dependent upon the Northern and Eastern banks than heretofore. A noteworthy fea- ture of the general banking situation has been the curtailment that has
 taken place in foreign credits. This
 has been brought about in purt
 through the closing of foreign
 agencies and branches, and in part
 through the refusal of any serious
 risks. In consequence the exchange
 situation is left practically without
 much support in this market, a fact
 which tends to make quotations much
 more irregular than would otherwise
 be the case, and in part accounts for recent weakness. The decline in
 marks to .0069 is, however, the out
 rowth of German political conditions So far as any action looking to stab ilization is concerned it is likely to be deferred until after the Washing ton conference. Meantime the ap- pearance of Argentina and some of the Australian states as successful borrowers in this market shows that foreign countries are still looking to us for financial support in some form and are getting certain measure of l it. e."
 Market Review. and Outlook. Trading has been on a relatively small scale. The fact that the week
 was broken by holiday doubtless tended to reduce a volume of business (which in any case would not have l been large. Operations have been chiefly professional, outside invest ment support being still narrow. The
 trading element is again in control,
 but the smallness of the daily turn over indicates that it is operating very | fconservatively. The scarcity of buy ling orders originating with the public tends to influence the professional element to takes its chances on the Ishort side. This is probably the main reason why values are showing a ten dency to halt. Trade conditions nat urally enter largely into the deter imitation of market transactions, but they do not seem at the present mo- nent to be responsible for the re actionary tone that has been noted in some quarters. Records of previous years show that after the first week | in October there is usually some ret rogade movement. so that values are following precedent. In the absence | of unexpectedly favorable develop ments in connection with railway
 funding taxation or other major is-
 sues values of stocks seem likely to continue uncertain for the imm ediate | future.
 | HENRY CLTWS.