The Washington times., 1922-08-13
Weekly Financial ReuieuD
BY HENRY CLEws,
OF Henry Clews q Co., New York Bankers.

NEW YORK. Aug. 1a.-As the
railroad strike approaches con-
clusiop, and as the prospect Of set
Brighter, the natural effect upon
the stock markets. TO stimulate
confidence that the many encour-
aging business factors which are
now at work will eventually operate
to raise values. This point of view
has been strongly In evidence dur
ing the past week, railroad stocks,
instead OF receding, rejecting a
continued confidence, on the part of
holders that the various difficulties
which have affected the Industrial
world adversely would soon be
brought to an end, and 30 advanc-
ing strongly In value. Class cne
railway earnings for six months
now 'show earnings at the rate of
4.43 per cent.
Favorable Agricultural Prospects.
There has been an excellent basis
for the belief that business. II It
could be given a chance. to develop
undisturbed. would shortly resume
a normal position. Foremost among
factors tending In this direction has
been the excellent crop report is.
sued by the Government on August
8, and pointing to high yields In
most lines, some Of them record
breaking. On the basis of present
prices the seventeen principal crops
have a value OF about $7,13AS54. 900.
which Is an increase Of 1920, ,000.-
600 over 1921. While the price Of
aty. L. A.
population had hoped. 1t is, never
theiess. sufficient to give a COM
Portable margin in most cases at
the Southern cotton planter is bet.
ter off than for some time past.
An excellent condition of retail
trade is reported in most of the
growing districts. and this may be
regarded as reflecting the prevailing
point OF view concerning the farm
outlook. or course. IL will be neces-
sary to move the product, and Il is
evidently the farmers desire this
yeai' to have the crops disposed Of
promptly. That means a need for
efficient railway service, but IL also
implies that there viii be abundance
of traffic as soon as strike difficulties
are over. Slight recession in railway
carloadings during the past week
indicates nothing with regard to the
actual business prospect, but is q
reflection of the state of things as
affecting the carriers themselves.
Revival Of Business Demand.
This favorable agricultural outlook
has been accompanied by increasing
revival Of business demand for many
classes of products. Notable in this
connection has been the call for cop.
per which is being so largely used in
electrical industries. The motor In
dustry Is making an increasing call
for Steel This situation is reflected
in the untitled orders Of the United
States Steel Corporation which, as
announced on the 10th. were SITS
l61 tons, an increase Of 140,B30 tons
over the preceding month. The strike
has thus far affected the steel In
dustry only In a comparatively lin.
tied way although II has undoubtedly
prevented Improvement from occur
ring that would otherwise have taken
place. A reduction in ingot output
for July is the unavoidable result OF
coal and railway disturbance. other
branches of business show fairly
steady growth, building permits De,
ing now about go per cent ahead oi
last year. Deliveries OF material
have been somewhat interfered witn
by TRANSPORTATION difficulties, but
have been sufficiently well maintain
| ed To keen up the activity of indus
try. Sales of leather and leather
products are increasing, and the er
feet of this weli-supported demand
has been to encourage the pubic IN
nurcha sing Industrial issues Tor In
yestment, although during the pas,
week some recessions have occurreo
as the natural result OF the uncer
tainty growing out OF the rati"aS
and labor outlook.
Foreign Conferences and Exchange
The allied conference at Londor
has naturally developed some oi,
ferences Of view between tne Drl.
ish and French participants pu
Il now seems probable tnat JOIN
program resulting in alneo conro
Of German finances Will be deter
NAV he a short moratorium, and
aionv with this some general dim
inuition in French demands for rep
arations payment. Nevertheless th'
foreign exchange market has peer
disposed TO wait for more definite
Indication of the outcome befor'
embarking on any active traolns
This has left the current business
on a limited basis and withou
much support. There has also beer
a tendency toward weakness II
some Of the currencies. with IN
result that marks In particuia,
have fallen in their quotation level
A favorable outcome OF the Londoi
negotiations ought to rectify TIM
condition, especially as foreigi
bonds have held their own well ant
there has been at least some I'm
provement in the attitude OF Tn
banks with regard to credits opene'
in favor of foreign buyers. A "a
yorable outcome of the conferenc
would be followed by prompt re
vival of interest in European pusl
ness. 90. -
Liquidation Of Credit.
Further liquidation Of hithert
frozen credits has occurred amonI
the interior banks. the result beini
to give the New York market al