The Washington times., 1922-07-23
ADysssaTSshHAHPs BUSINESS AND FINANCE OF
Weekly Financial Revieuy
BY HENRY CLEws,
of Henry Clews q Co., New York Bankers

NEW YORK, July 22.-For still
another week the dominating influ-
ence In the financial markets has
been the strike situation. While full
confidence exists In the ability OF
the Government to protect the in
teTests of the community there Is
an inevitable disposition to await
Developments before making new
commitments. Meantime, some i'm
provement has been brought about
IN the German situation. Other
foreign governments have carried
their current financing well toward
completion--for the present AT all
eycnts-and this leaves the pros
pective German loan possibly the
most immediate problem OF Euro
pean finance. Great ,Brttain'S once
more announced intent to begin pay
ment of interest on her debt to the
United States during the coming
autumn gives further evidence OF
progress toward normal conditions,
while some advance Is evidently
being made toward the tentative
establishment Of more satisfac-
tory basis for the revision of the
reparations terms.
Railroad Strike and the Markets.
The fact that prices have held so
we'll In fade of. the continued strike
unsettlement bears testimony to
confidence Of the community In the
eventual adjustment of working re.
lations. Both the coal and the raih oad
issues had to be brought to a head
and settled before the situation had
gone much further, and adjustment
of the points involved will avoid
worse trouble later. According 10
some current stock market 'harom'
eters," rail prices are now fully two
points above the figure they had
reached at the time when the
present troubles became acute. The
public is wise In taking the view
that a settlement on some definite
basis will strengthen instead OF
impair the position Of security hold
ers, and present conditions reflect
that opinion. Strongly tending to
confirm II Is the good traffic out
look. Returns for July. when avail
able, will no doubt show the effects
OF present business disturbances,
hut these will be offset by increased
freight movement as soon AS full
working conditions arc restored.
Even for the first third OF July the
carloadings OF some of the Western
roads show advances Of 10 to 20
per cent or more above the corrc'
spending period year ago.
The Stability of Trade.
Despite the railroad and mining
troubles, general business continues
to maintain its stability in an un-
usual degree. Just as year ago
dividend reductions. both actual and
prospective, were an important in
fluence In depressing values, no ad.
vances present and predicted are
proving today factor In sustain
ing prices. Not a few concerns are
rapidly retiring their outsta nding in
dehtedness and getting out OF the
condition of dependence on the
banks, from which they have pre-
VIC zsly suffered. Both rails and In
dustrials are affected by the divi'
dend forecasts, among the roads thus
helped being the Pennsylvania and
the Baltimore and Ohio, while among
the industrials are one or two we'll
known motors and several popular
speculative specialties. These fac
tors naturally have gone far to offset
the bad effects on the industrial list
which might have been expected
from strike conditions. General
business Indications for the past
week have been generally very favor
able. Notable in this connection has
been the Improvement in the leather
situation and the good absorptive
power OF the copper market, not
withstanding a production which Ia
now in excess of any since the open
ing Of 1919. In other branches Of
business conditions continue good.
certainly so far as strike obstacles
permit. Coupled with the reduction
of unemployment to the vanishing
point. this activity OF manufactur-
ing naturally means steady and well
sustained demand for goods at retail
and Wholesale, as Is demonstrated by
current indexes on that subject.
A Better Outlook In Washington.
President Harding, who has been
doing his utmost to restore indus.
trial peace. has unofficially let II be
known that the interests of the com.
| munity in this connection are far
| more important than the immediate
| furtherance Of legislation. The re-
suit of all these conditions has been
TO reduce the prospect of passing
subsidy or bonus bills at this ses.
sion. and the change OF outlook Is
| correspondingly favorable from the
| standpoint Of taxation and finance.
Exceptional success had been ex-
perienced by the Treasury in it's
financing during the past two
| months. and the views OF the com
munity as to present prospects are
REFLECTED in a new upward move
ment of Liberty bonds which has
carried them for some issues to a
figure from 101 to 1902. The delay
and difference OF opinion on the