Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-05-28
BY STUART p. WEST

BY STUART p. WEST
Special Correspondent Of The Great Falls Tribune
Copyright. 1872. BY The Greet Falls Tribune
New York, May 27.-It is fair to
characterize last week as one of the
least eventful Of the year, SO far. The
international money markets have nat
urally showed hesitation on the eve Of
two very important Developments, one
the German reply, due this coming
week, to the demands of the allied
reparations commission; the other the
result Of the conference Of bankers
now going on at Paris, which is con
sidering the subject Of a great joint
loan to Germany. The strength Of
1922, reflects, more than anything,
the improvement in Great Britain's
own finances and by consequence her
lesser degree of dependence as COM
pared with the continental nations upon
Germany's meeting her war obliga-
tons.
Confidence In Paris Conference
The French, Italian and Belgian
period of suspense. That act argues
an underlying confidence in banking
circles that the conferees will eventu-
ally bit upon a plan whereby the money
will be loaned to Germany to meet
the deficit now indicated in the extra
ordinary budget. If this happens the
reparations payments which are 30 vi
tai to France and Belgium and upon
which they are relying to v an
otherwise huge deficiency. will be safe
and it will become possible for the
German reichbank to begin cutting
down its paper note issue and thereby
gradually raise the value of the mark.
Even if the impending German reply
on the indemnity question is unsatis-
factory, it is hardly likely that France
In advance of the conclusion Of the
bankers gathering at Paris.
Tho Advance In Money Rates
Somewhat higher rates for both call
and time funds in the New York mar
ket may be set down to a combination
of reasons The first is the usual
per cent on time loans a week ago to
divert money from New York. The
from 1872 per cent in the ratio
of tie New York federal reserve bank
indicated a movement of this sort under
way. The second influence has been
the continued outpour of new capital
and the third the increased
demands imposed by the speculative
market. 1t does not appear, how
ever, that for any one or all of these
causes any serious change from the
easy money situation is to be antici-
pated yet a while. The time to look
Tor higher rates is three or four months
from now, when the money market, be-
the customary seasonal require
in the harvest regions, probably
will be nnn4I t,nA~ tn f,ra~oA M n |
tive autumn trade.
Bond Prices Show Little Movement
The investment market, if on occa-
sions during the week it has seemed
to grow more animated, has really |
shown nc signs of resuming the main
movement which was definite
ly stopped a month and a half ago.
Liberty bonds, to be sure, have sold
erably smaller In the aggregate than
they were early in the year. have con-
to 60 off well. But while the
average of bond prices holds
close to its top. it has not,
the middle of April pushed fur
ahead. This may be attributed to
the competition of the new securities
with the old. or it may be set down
as proof that bond values have fully
themselves to the fall in the
price of money. But at all events
has been a definite check, and
It means that the investment commun-
lty is beginning to make it's calculations
upon a higher money market later in
the year.
Follows Trade Movement
Speculation, on the other hand, Is
not 80 much concerned with the cost
Of money sc long as it is reasonably
of the abundance Of the credit
It is more interested in the
Of the general trade, in the
increasing earnings of individual prop
critics, in the possibility of larger divi-
lends.
These are the considerations which
have shaped the speculative movements
IF the past week. 1t had no general
but rather a collection of
In special stocks for special
-easons. At the moment there are