The New York herald., 1922-02-06
FINANCIAL NEWS
AND COMMENT
Forceful Undercurrent for I'M
proving Industry and Trade
Can Be Seen.
CLEAR ROAD SEEMS NEAR
Strength Cited in Disinclina-
ton to Sell Stocks as
Prices Rise.
CLEAR ROAD SEEMS NEAR

The course of the major markets last
week was of q character to influence one
to direct fewer glances toward distress
ing results Of business In 1921 and more
toward the prospects opening for the fu-
ture. If this applied only to stocks a
degree Of skepticism would be entailed In
a forward survey. for the highly profes-
sional. and partly artificial. caliber OF
stock market strength has been fully ap-
parent to everybody who followed deal
ings from day to day. But the rise Of
stocks. supplementing the most vigorous
upward stride OF London exchange In
many months. and the somewhat sur
prising strength Of grain and cotton quo
tations. lends support to the belief that
great forces are working for the I'm
provement of industry and trade.
The situation is SO different from what
1t was a year ago that contrasts. but
few parallels. can be drawn between the
periods. Nevertheless, 1t is not impossi-
BILE to find relationship between particu-
lar aspects Of business in February.
1929, and the same month Of 1924. A
year ago prices of goods were on a
downward swing and they are still fiuc-
tuating In pendulum fashion. sometimes
lower, sometimes higher. with no sure
outlook for reaching equilibrium this
year. In fact, most merchants have be-
come reconciled to the probability of do
Ing business on falling market for a
long time to come. And while prices
remain uncertain, caused in great part
by the inability Of the people to buy In
accustomed quantities. the unwillingness
of labor to make concessions to economic
powers is emphasized by the widespread
textile strikes in New England and the
threat of a coal mine strike in April. Z
Facts Have to BE Faced.
1t is not good to ignore current facts.
whatever the markets may indicate in
regard to things some months hence.
The record Of mercantile casualties In
January was the most depressing since
the days Of the last bad panic, and the
forecast Is for the clearing away OF
much more debris Of the 1921 collapse
before the road is, clear again. While
sterling exchange has recovered to the
highest level In two years and francs
and few other lately badly deprecated
currencies arc worth more in purchasing
power than at the end of last year the
exchanges as whole are by no means
in shape to promote the rapid expansion
Of international trade. The financial
conference at Genoa has advanced no
further than half finished arrange
ment and shadowy promise Of con-
structive events in European finance,
The adjustment Of Germany's reparation
payments, which play the part of the
Old Man of the Sea to the German Sim
bad, remains remote and continues to
prevent genuine revival of production
and distribution of goods overseas
There are plenty Of additional matters
of unfavorable content, and 1t is certain
that ghosts of last years business
troubles will rise from time to time as
the statements of corporations appear.
They will have their adverse effect upon
sentiment. The rise of exchange is not
an unmixed blessing. for already news
comes of difficulties for merchants with
stocks Of imported goods on hand in
England. When exchanges. rise goods
prices fall. Germany went through a
severe internal experience last spring as
the result of a rise OF the mark.