The New York herald., 1921-11-28
FINANCIAL NEWS
AND COMMENT
Despite Some Setbacks, the Ac-
tivity in Industry Has
Been Increased.
STOCK DEALING REVIVING
Notable Week I'm Bonds Shows
Money for Some Invest
ments Is Plentiful.
STOCK DEALING REVIvING

Nearly three months have gone by
since the first unmistakable signs of the
country's rebound from the depths Of de-
preston were seen in the markets. In
this period some of the economic
changes which seemed the most prom
ising as stimulants to business have
been reversed: to wit. the price Of cot
ton and grain. But in the main It can
be said that industry has added some-
thing to the Improvement reflected IN
stock market prices late in August.
Steel mill operations had risen from
around 25 per cent. Of capacity in July
to approximately 35 per cent In the last
week of August, when stocks began TO
announce the Improvement, and since
then there has been an advance to ap-
proximately As per cent. taking the
trade as a whole
The petroleum industry in these three
months has moved from a state of slack
ness and low prices to a condition OF
activity, preceded by one Of the most
spectacular rearrangements of values
that ever was seen In this business. In
oil, as In several other commodities was
demonstrated the fact that even In a
period Of dulness and OF credit llquida-
ton the normal demands Of so large a
country as ours absorb vast quantity
OF essentials. In the textile field and
the shoe trade somewhat the same thing
has been seen, for the records of exports
show beyond question that purchases for
foreign account had much less force
than in normal times to expand manu-
featuring and production.
In these three months It has been
demonstrated that the processes Of re-
adjustment after an extravagant boom
which In turn followed a great war arc
not to be completed in a few years, nor
are they to follow lines which may be
plotted in advance. Tho upturn of cot.
ton prices was halted not by topheavy
speculation for the rise but by the in
lection into market considerations Of q
factor that had appeared before but was
not looked for this year, namely, proof
positive that the crop would be much
larger-possibly a million bales-than
the Government experts had predicted.
Steel Orders Lag . Little.
While stiffening prices OF pig iron
early In September seemed to show that
the demand for steel was increasing
1t actually was Increasing IN light
products-the records Of orders In Oc-
tober suggested that the expansion was
not fully sustained. II is possible that
petroleum prices will recede from cur
rent levels before spring: but. at the
Same time, reports which come from
most departments Of Industry Indicate
that much of the advantage gained in
the early autumn will be held and from
this substructure better business will
grow next year.
Stocks have not moved far In either
direction since the world turned its at
tention toward events before the Con-
ments. 1t would seem as though price
movements were almost suspended after
this historical meeting got under way or
that In the last fortnight two evenly
matched parties had been struggling
with quotations. But there were indica-
tons in the markets of the last week
that traders were renewing interest In
matters of direct application to business
and trade. less remote than the great
benefits which will come from a les
sening of outlay for war preparations.
That the railroad shares led the advance
may have been more significant than 1t
seemed or It may have been less. Pre-
sumably, the practical shelving OF the
railroad funding bill. which seemed SO
necessary to tho Administration and to
the railroad managers and bankers three
months ago, was looked upon as n hap
pening containing no possibilities for
harm, showing, In fact, that the carriers
mad gone through their most pressing
time of financial stress. October earn
ings statements, also. showed encour-
aging gains in net revenue as compared
Win rtSultb III Otpttuipcr, eitu IN eOfnc
cages gross receipts made q fairly good
comparison with those OF year before.
Continued Gains UnIikcIy.
II Is not TO be expected that railroad
stocks, any more than shares of indus
trial companies, can register continued
gains. for the roads have a considerable
way to go In their return to entirely
profitable operations. Though the none,
market Is easing steadily and there l.
sure demand for excellent railroad
bonds and notes, II IL not In the field or
finance that the present difficuity lies
Rather It Is In the discrepancies which
exist between gross revenue and costa
The carriers may raise all the none.
.ney need their anxieties over ratos
and wages are still as heavy upon them
as they were last Angus. The real
period OF stability and satisfactory oper.
alton will not come TO the railroads until
rates aud wages come down further, and
the weight that seems likely to tip the
scale toward profits or deficits Is TIL.
uncer' lin quantity OF time. II wage
cuts do not come until long after freign,
rates are marked down then the railroad
outlook will not be pleasing, unless a