New Britain herald., 1921-05-07
WEEKS REVIEW AND IMMEDIATE OUTLOOK
Henry CleWS, New York Financial
 Expert, Gives His Opinions
Especial to The Herald.


 New York, May 7.-Definite prep arations for the advance of Allied troops into Germany have been fol- lowed by a short-term modification to the Berlin government that it must accede to the basis of settle ment already outlined by the Allies or else prepare for the utmost penalty. AS for our own part in the situation, Secretary Hughes positive refusal to act as mediator and his criticism of the German terms as unsatisfactory has destroyed the last hope of relying upon the intervention of the United States to mitigate Allied demands The fact that under these circumstances sterl- ing exchange has continued it's ad- vance to point near S4 shows the confidence that is entertained by the business world in the eventual ac- ceptance by Germany of an ade- quate adjustment plan. It is evil dent that the Germans are on the eve of submitting new terms which it is believed will be good enough to receive serious consideration at the hands of the Allies
 Prices and Readjustment-
 further definite step in the pro- cess of readtustment has been taken by the United States Steel corpora ton in making a reduction of wages estimated to amount to about 20 per cent. As a matter of fact, the cut is very small considering that wages during the war period were raised anywhere from 130 to 1S0 per cent; nevertheless. the reduction fa re- garded hopefully. as it cannot fail to have an important effect upon the mind of employees generally. In- dexes show still further reductions of price level during April, although the downward movement has evil dently been arrested and the aver age reductions which are now report ed are largely the outcome of the process of "evening up." There is still a large gap between wholesale and retail prices in many commodi- ties, and the Federal Reserve board in its monthly statement on busi- ness conditions ascribes the present retardation of readjustment chiefly to this very cause. Improvement in railroad operating figures as we'll as in railroad incomes continues to be in evidence. An encouraging piece of news is the announcement that more than 75 per cent of workers on the short line railroads have ac- cepted the reductions orderedl It may be taken for granted that labor in every branch of trade will before long do likewise.
 Market Review and Outlook.
 The market during the past week has been active and strong with prices advancing during most of the time and an unusually large turn over has resulted. There has been very satisfactory strength in prac- tically the entire list. Tn the rails this has been largely due to the we'll confirmed belief that economies to be Introduced, including wage re- ductions, will enable the roads soon to make a much better showing. par ticularly now that the outlook for business is so much more encourag- ing. The fact that railroad stocks have again been taken in hand and that some of the. low-priced shares are once more looming to the front is calculated to do much in restoring confidence in the market, as they are always favorites with the public.
 HENRY CLEWS.