The Washington herald., 1922-03-12
BRITISH ECONOMIC
CONDITIONS FACE
BRIGHTER OUTLOOK
Federal Operations for
1922 Will Show Little
IL Any Deficit.
TRADE IMPROVING
Reduction in Bank Rate, and
Further Gains in Sterling,
Material Aids.

The British Parliament is takinx
n conservative attitude toward tire
budget economies recommended by
the Geddes Axe" Committee. SAYS
Commercial Attache Tower ina
cable to the Department Of Com
merce. or the I75.OOO.OOO savings
proposed. 10000. 900 will probabiy
be passed but only f54.OOO,OOO OF
these will apply to the coming
fiscal year. The Department Of
Overseas Trade receives a new lease
on life and will not be turned over
70 the Forign once. In view OF
this procedure, il is being predicted
in some circles that the urgent re-
quest of business interests, hesCcd
by the Federation Of British In
dustries. for a two-shilling Cut in
the income tax must expect equally
conservative treatment
PessImIsn Lessened.
The positive assurance that Tho
present fiscal year will not en-
counter a heavy deficit has lessene,.
some OF the pessimism that pre-
vailed at the turn Of the year H.
the week ending February % re-
ceipts exceeded expenditures by
eighteen and one-haIf million
pounds sterling. In addition tho
floating debt was reduced nineteen
and one-half million pounds. Their.
is every indication therefore that
budget for the year will close with
a very small deficit. il not. indeed.
with a slight surplus.
Further optimism has resulted
from the reduction OF the bauD
rate on February IS to ~ p'-
cent. the continued strength 81
sterling. and the strong market fng
gilt-edge government securi1.'~.
For the recent Anglo Persian ,rar
there were $1,000 application.
tOtalInE f63. 900. 600. whereas o.
f4.O5O. 600 were allotted. on tEr
other hand. the offering OF tn.
Bengal Iron Company was undss-
subscribed. by reason Of diStUr,.-
ances in India. There has al"
been a strong market Tor standata
rails. showing an average rise or
eleven points above the prices 90
ordinary shares since January ..
and reaching a level twenty pI.a'-
above the low Of 1921.
The dividend action Of ieadiu.
railroads lends apparent st-'Hg1n
TO the protest of those intercsts
which urge a general reduction in
rates in place OF the present p.,-,
meal policy 81 the roads. rnaGuia
reductions mainly to excursion
rates and demurraEc charges. WI.
respect to industrisls the situation
is not so favorable. An eNamina-
tion into the profits OF 7S2 CON
ranies shows a decline Of ISs.r0n
600 or One-third. as between 1921
and 1921.
shipping DIscOuraEtaE.
The shipping situation - a.
couraginC. OF the shipping berth
IS per cent are idle. while ~ L.
per cent work is either. suspend
or cancelled. During 1921. IN"
docks were empty on 1000 d"CA
days. The reduction in the ship
ping wage bonus. just put 10 H.
vote. has been defeated by ten-Ja-
one majority. This action = ,,1.-
trary to that OF the Welsh tiU-pia I.
workers who have accepted out -u
the wage bonus from I5ie to -
shllllngs, until May g. Thc h""'
and shoe industry has also bc"1
aided by similar readjustmcnt.
Wage changes during January a.
fcCted 10000 OOO workers. 90 per e. .rr
of the changes calling for decrease
that totaled E57O.OOO vcr week. In
employment figures for ;hc week or
February 81 were I.S9O. 600. do
cline Of lS.90O since the beg nniI-
Of the month. About I20.Opo ar.
reported to he employed I'm ono
form o. another OF GovCrnm,ut Z 90
employment Relief.
A much brighter picture il pr
scented in respect n the coal sltua-
tion. The production Of coal Tor
the week OF February Is Ma
5000. 600 tons. while the aN'raCr r'-
four weeks has run . haIf-m.l .'-l
tons beyond that produced Year