Connecticut western news., 1922-04-20

The general feeling in business circles is one of strengthening con- fidence that the corner has been turned and that 1922 will be better year than 1921. The improvement in fundamental conditions and in general feeling since the first of the year has been very marked; indeed, from the middle of January to the first of March optimism was perhaps over-pronounced, and moderate reaction in some lines has naturally resulted. :. The stoc ck market, which is prompt to reflect and event anticipate changes in fundamental conditions, has been creeping upward for the last six months in a slow but persis- tent movement which suggests faith. that better days are coming.
 , Railroad traffic, as indicated by the reports of car-loadings since the first of the year, have been running ahead of last year, although Januu- ary gross earnings were about 16 per cent below those of the same month of 1921. On the other hand the net earnings of 199 roads were $57,421F, 6O5 in January against $28, ,331 1856 in January, 1921, which reflects the reduction in operating expenses.
 : Trading in all lines is on a. short order basis.e Foreign buyers wish to avoid the risks of exchange fuctua- tions so far as possible, and in the domestic trade there is a prospect that in some lines, particularly cloth ing and textiles, prices may be lower: There is general agreement, how ever, that both at home and abroad stocks have been worked down to the minimum and that there must be constant buying to meet the demands for current consumption. This is one respect in which the situation, is decidedly more favorable than it was in the latter part of 1920 and throughout most of 1921. 3 s.>
 The steel industry has made Q marked recovery, the United States Steel Corporation now operating at, about 70 per cent. of capacity and the independent companies in the aggregate at probably 60 per cent. When it is considered that produc- ton capacity has increased about 50 per cent. since before the war, it will be seen that this is far from state of stagnation.
 The implement industry, although still far from normal, is much better than at this time last year, and that is the case also with the automobile industry, and even more so with the building industry. The figures for the latter are quite remarkable, per nnits in 161 cities aggregating $132, 1909, 1000 in February last, 1927.
 The Situation in Agriculture
 The chief factor in the change of sentiment which has occurred since the first of the year has been the rise in prices of farm products. It came so easily and naturally as to demonstrate that the country had been suffering from excessive pessi- mism, and that in the natural order of things the economic situation, given reasonable, time, would recover it's equilibrium. Grain prices in March lost a part of their February gains, but the reasons were obvious and there was no serious loss of | confidence The breaking of the drought in the southwest and inn provement in the outlook for the Winter wheat crop was the principal factor in the decline. For several months the country had been hearing that, the condition of the Kansas wheat crop was critical and getting worse every day, and then came snow and rain, and the prospect is now reported good for large crop. The
 world situation in wheat is closely balanced and any important news is
 likely to have more than the usual
 effect. { Australia and Argentina are
 both exporting freely. New wheat
 from India will be available within a
 month, and the harvest is only three
 months off in this country. As the
 end of the crop year approaches,
 opinions about the supplies give way
 to, realities. There have been two
 positive opinions as to whether or
 rot this country was selling itself
 short, but the opinion is now general that there will be enough to go