The New York herald., 1922-01-05

everywhere except in the case of retail
ers, ana wage reductions followed at a
trine slower pace. On the other hand.
tne banking position continued to
strengthen. The leadership in price re-
auctions was taken In April by the
United States Steel Corporation and was
accompanied by drastic recessions in oil
and petroleum prices. Coincident with a
great Improvement in the Reserve bank
position IN April. the corporate bond Of.
ferings were the biggest of the year.
with the sale Of s23o.00o.oo0 of Great
Northern-Northern Pacifics at the top of
the list Dividend cuts and omissions
continued In the second quarter. Except
as regards the stock market, May was a
big month constructively. It saw the
completion Of the first reparations pay
nent and the general lowering of Re-
servo bank rediscount rates. It saw fur
ther wage reductions including railroad
wages.
June. marking the turn OF the half
year. was q month OF vast liquidation.
Shutdowns OF Industrial plants and in
creased unemployment were added to the
evidence Of depression In tho Industrial
and economic situation, as well as
marked ease in money rates. The only
direct constructive progress was made by
the railroads In the direction Of lowering
operating costs and by the termination
of strikes of national Importance. Fur
ther reductions in rediscount rates &C.
CARED and the Government adopted the
new expedient of issuing three year
notes. which were q marked success.
There was not much change In conditions
in July except to iieighten the nquida-
ton, which brought easier money and
caused investors and spectators to turn
their attention to the bond market. With
only a fair output OF new securities. the
bond market may be said to have struck
it's stride in June with lowering OF
yields and an appreciation In prices. The
lowest ebb of the Industrial depression
came In July, with the only new feature
the public buying OF stocks on every re-
action.
: Turn Comes I'm September. q.
The first turn for tho better indus
trially carne in September and the
change, while slight, was distinct In
trend. In some lines of commodities
prices rose somewhat. Textile indus
tries were distinctly improved. Build
ing was more active and tho lumber
trade better. Among the encouraging
financial developments was the cut In
the New York rediscount rate to per
cent. and the marked appreciation In
the market value Of Government bonda
There was rise in silver and a better
tone In copper and crude oil. The rail-
road position was improved by the sale
Of nearly s10o,0o0,00o of car trust GER
tificates held by the United States Rail-
road Administration. In fact the pro-
tracted period OF liquidation appeared
70 have come to an end. New loans
were floated in profusion. The months
really conspicuous feature was the al
most continuous rise In bonds, embrac-
Ing all classes. The collapse of the Ger
man mark was the only new factor not
constructive.
The prospect for speedy improvement
was nipped In the bud IN October by the
railroad strike. Rev thought
It would occur, but few would start new
enterprises Tho volume Of trade was
larger. but due wholly to seasonal infu-
ncea The railroad strike call received
the support Of only $4,000 out Of $780,
900 workers. the balance expressing
their disapproval OF II, and at the close
OF the month Il was averted. Construc-
tive features were the tremendous over
subscription TO Government certificates
OF Indebtedness at the lowest rates thus
far reported, the trend Of money toward
greater ease and the movement Of Gov
ernment bonds to the years highest
level
In November the Industrial situation
was mixed. the steel trade improve
ment failing TO hold, pig iron prices
tending downward and a new low for
sugar, Offset by advances In copper.
crude oil. gasoline. wool. silk and cof-
fee. The rediscount rates OF Reserve
banks were further reduced, money
rates continued easy and there was great
activity and strength i'm bonds. The
stock market. too. came to life with ap-
probation of market values OF rails
and industrials.
In the final month OF the year 1t be-
came evident that the revival or busi-
ness would be gradual and probably
would not gather momentum for many
with spotty and irregular con-
ditions prevailing FOR considerable time.
The bond market went into new high
ground for the year and tho recovery
The picture of last year 10 a dark
one. with bright spots here and there.
The outlook OF 1922 IL bright But he
who expects phenomenal developments
during. the immediate future In likely
to be disappointed. The best brains see
only gradual and steady bettermcnt,
which eventually win aggregate large