The Washington times., 1922-05-21

NEW YORK. May 20.-Steel
merger prospects continue to be the
predominant element OF market in
terest Sharp advances in various
issues have followed upon announce
ments relating to the plans and pros
poets Of combination. As often be-
fore stated. the question how FAR
such mergers will result in real
basis for advance of prices depends
largely upon the result Of the agree
ments in cheapening costs of produc-
ton or controlling prices themselves
II was probably a recognition of the
latter fact that has led to the Con-
gressional agitation OF the subject,
followed by adoption OF a resolution
calling for an inquiry.
Advance In Business.
A better basis for confidence In
steel shares than is afforded by the
merger reports is seen I'm the increas'
ingly encouraging reports from steel
mills showing larger ingot produc'
ton and new bookings. Better de-
mand for copper and improved out
look in that industry generally are
reflected in the resumption OF divi-
dends by one or two concerns. but
are also seen in the lessening or
surplus stocks and extension OF
operations. AS a result, merger ru-
mors are afloat in the copper mar
ket, Just as in the steel market. In
other branches of business there are
some indications of the same tend
ency, although il is less pronounced.
1t is due essentially to the BELIEF in
prospects for better business and TO
the idea that more effective capital
istic organization can succeed In TAX
ing advantage OF this outlook. In
the railroad field, the resumption OF
consolidation reports, based upon dis
cussions before the Interstate Com
merce Commission, represents a
parallel situation. Meantime, the
Presidents conference with railroad
executives, set for the evening Of
the goth. Is looked forward to as
possibly turning point in the de-
velopment of railroad share values.
disappointment at Genoa.
The closing sessions Of The Genoa
conference have turned out to be
even less encouraging than had
been expected some time ago, and
the chief reliance for greater sue
cess in the meetings at The Hague
is now evidently upon action on the
part Of the United States, which,
however, seems to be as remote as
ever. Unofficial reports that the
international banking conference Is
deferred or that the United States
will not participate In 1t are aD-
parently the result of indisposition
in this country to map out rs yet a
definite program for the extension
OF economic aid to European Coun.
tries. Secretary Hoover s program
stated in his address before the
Chamber Of Commerce convention
at Washington during the last week
calls for the familiar restoration of
sound political conditions and equal
ization Of foreign budgets 80 often
insisted upon, but adds the new
item Of gold standard for Europe
with gold loans or credl,s by the
United States, although there is no
definite plan for securing the lat.
ter. Progress at all events Is he
ing made in settling the general ele-
ments Of the problem offered by
European conditions at the present
time, and in mapping oIt at least
tentative plan for dealing with
them.
Improvement In Crop Outlook.
Government crop reports are in.
creasingly favorable as regards al.
most all classes of products, and a
substantial yield is now forecast in
most lines. The effect of this good
outlook, coupled with the more lib.
eral attitude on the part of the
banks. is already seen in the i'm.
provement Of retail and other trade
conditions at principal business cen.
ters in the West. while the restora.
ton of more satisfactory prices for
all classes of farm products, prac.
tically without exception, has pro.
ceeded rapidly. Foreign reports
have lately pointed to an unexpected
Improvement in demand for our
cotton and wheat, and a good many