Evening star., 1922-04-02
BY 1. A. FLEMING.

A demonstration Of strength of very
positive character has been given by
the New York stock and bond market
during the past week. '.s
To the average market student a re-
action was past due. So firmly was
this opinion fixed that it seemed as if
the market might sag away for a con-
siderable decline Of it's own weight. and
q more serious loss when bear pressure
and the rush to take profits by traders
about to change from bulls to bears
were considered.
The advance in prices had been con-
tinuous, or practically SO. from the mid
die OF June, 1921, what reactions had
occurred not having force enough to
make much progress and causing moth
Ing mora than temporary hesitation IN
the upward trend OF prices.
Last week. however. the bear move
ment reached large proportions and
the list. the result being reaction OF
one to two points on the average but
before the bears could cash in on this
small drop they found a most positive
display Of strength and met a wave of
rSpurcnasing from the trading element
that cost them part Of their profits to
get back in the market again.
With 1t all came reports Of splendid
railroad earnings. some part of the net
being accomplished by neglect OF equip
ment and maintenance. but no small
part Of the gain due to lessening OF
transportation charges; clearings of the
chief cities Of the country showed, while
the abundance of money and lower
rates. in spite Of the efforts of banks to
in investors bidding Up the market on
each other. especially on high grade in
vestment shares and bonds.
The turn in the markets starting
about June ~, With Steel common al
70h for the low. was based. not on con-
ditions existent. but. as stated at that
time, "on the outlook for 1922"
. Unquesttonably business is better. un-
questionably inventories have been re-
ducsd. and the consumption Of goods
has gradually reduced the stocks on
shelves so that production and purchas-
ing had to start again.
At no time during the past year has
money been really scarce-at no time
could it be chargeable with the trade
slump.
Associa4ion of Clearing Houses re-
ports business better in some sections
and still. slow in others. The sore spots
have healed, but have left their scars.
Spring trade, according to the best
Unemployment is still too much OF fac
tor to be ignored.
The nation is on the eve Of gigantic
coal strike that may or may not be Sc
rious in its results.
But from these possibilities the turn
to view the actualities OF Europe is un-
pleasant. The United States has not
been in the slough as Europe has been
and is today. II Europe was emerging
from its trouble the situation would be
ons Of great cheer; as il is. 1t cannot
be called pessimistic nor doubtful of
our own improvement to suggest mod.
Grafton and caution-to keep on going.
but TO keep one foot on the accelerator
and the other on the brake.
The Department OF Commerce finds
hSlsiness improving. based on informa-
tion received since March 90.
In the woolen business the percentage
of machinery activity In February was 66
to 81 per cent. against 80 to 49 per cent
for the seme month the previous year;
cotton spindle activity is lessened by
labor troubles: other textiles are re-
Iron and steel, one-time. infallible
barometers OF trade conditions, is show
ing the greatest improvement Orders
to new activity have been given at
Homestead and Duquesne.
The railroads of the country have
come very close to earning their s per
cent limit.
Proposed Amendments.
n. r. s3es, to permit reserve banks.
on vote of not less than Eve mem-
bers Of the Federal Reserve Beard,
notes. bills OF exchange, ETC., on sig
nature OF Endorsement Of any one
borrower, in excess of amount per-
mitted in sections and IL of the re-
serve act, but in no case to exceed
20 per cent, with all such loans: Sc