The New York herald., 1922-04-17
FINANCIAL NEWS
AND COMMENT
Improvement i'm Certain Lines
of Business Becomes More
Pronounced.
FOREIGN TRADE BETTER
Possibility of Genoa Confer
ence Stimulating Condi-
tons All Over World.
FOREIGN TRADE BETTER

Events OF the last week in the iinan-
ciai field were remarkable chiefly in the
extent Ia which they emphasized the
rapidity of this years Improvement of
credit conditions and the enlargement or
particular forms OF business. 1t is pos
sible now 10 state that the growth of
steel making has far exceeded the ex-
pectations of that industry when the out
look for 1922 was measured along in
December The so per cent. mill opera
tions then were thought possible of ex-
pansion TO s. per cent. by the late
spring, when the years construction and
railroad contracts should be we'll In
hand, but il is doubtful IL even the most
optimistic OF steel manufacturers pic
tured 50 per cent operations in any dis
trict by April 15 Yet some important
plants were reported ct so per cent. o.
capacity within the last day or two and
the Steel Corporations bookings in
March must have exceeded 100000
tons. total equal to almost one-foirtf
OF the entire amount of orders on the
books when that month opened.
1t was in respect to credit, however,
that last week was made especially
notable. While relaxation here lacked
the positive stamp impaired in London
by the Bank OF England's discount rate
cut TO per cent.-the lowest since july.
l9l4-still the advance OF five Liberty
bond issues TO par or better and the
Treasurys Offering of large block o.
six months debt certificates at Sia per
cent. painted a pretty complete picture
of the situation A per cent. Reserve
Bank rediscount rate at New York
would mean very little to the bond mar
ket in its present certainty of the trend
of money rates; nor is 1t likely that
business would tend TO expand more
rapidly if credit we're made a little
cheaper.
Conservatism OF Reserve BANK.
The Reserve Bank managers are tax
ing n conservative stand, and in this
they have the support of the more Tore
sighted bankers and business men. II
IL realized that now Is hardly the time
for fresh imitation, and the exceptional
activity Of the stock market In the last
fortnight suggests that brake upon
speculative enthusiasm would be more
desirable than a fresh incentive TO carry
securities on credit.
London has returned practically to
normal basis OF credit costs. On this
side interest charges, vested in ga
per cent discount rate for bankers ac-
ceptances. in Az per cent. commercial
paper and collateral time loans and in
4 per cent call loans are not so low
as in times past. but they certainly are
not burdensome. In banking opinion 1t
would be preferable to retain current
rates and to maintain them far along
into a new era OF business recovery than
to cut costs OF loans for time and
then lie forced to increase them again
when business demands became active.
And it is TO be said that the sudden
expansion OF steel buying. accompany
ing rising prices. has caused some Won
I derment Wnetnef OF not otntI uepaIl-
ments OF industry may grow with equal
force and unexpectedness.
The experience of our foreign trade
in March was a collateral reflection OF
business improvement and more COM
prehensive than the gain in steelmak-
ing, for its scope was much broader.
Not only was the $3S2. 100000 value OF
merchandise exports 81 per cent. greater
| than in February, but 1t was the largest
total since last October. The $e5S,o0o.-
600 OF imports exceeded any month since
December. 1920, that month being really
/ The hrst one which began TO emphasize
i'm trade records the slackening of buy
ing power Of the American people in the
depression that reached its lowest ebb
4 six months later. In the export rec
ord there is undoubtedly the reflection
/ OF increased purchasing power OF for
\ eign currencies. as well as the growth
! Of business confidence overseas.
4 Imports show Confidence.
I The import figures for March disclose
probably enhanced competition of for
4 eign goods with American goods IN