Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-03-19
DAILY SALES USUALLY
ABOVE MILLION MARK
The Much Talkcd.Of Reaction
Has Failed to Mate.
rialize.
STEEL STEADILY IMPROVES
Increased business in Motor In
duHtry md Gradual deduction of
Unemployment in Industrial Cen
tors Arc Signs OF business Recovery
by Walter Il. Brown.

NEW YORK, March 1s.-Greater
activity las been the feature OF the
stock market during the week, with
daily sales generally above the mil
lion share mark. The much talked
of reaction has failed TO materializc.
but on the contrary there have been
further exhibitions OF tho underlying
strength. There are indications of
gradually increasing public in
tcrcst. although the theory of pro-
fessionais is that II will require
something of setback in values TO
establish u new buying basis attrac-
tive to the public. The assumption IL
that the advance thus far has dis
counted the recovery in business. but
the fact that the market does not re-
act is suggestive that business Is
more substantial than at first antici-
patcd.
Looking over the general situation,
there would seem TO be moro basis
for this belief than has hitherto APP
pearcd on the surface. What has
seemed to bo merely seasonal ac-
tivity now has n more permanent
look, and the treasury officials at
Washington as result OF the re-
ports received through financial CEN
tiers all over tho country confirm this
belief.
steel Industry Improves.
The most conservative barometer
is the steel industry, which has been
showing slow. but steady Improve
iucnt, together with Il tendency in the
direction OF stabi!ization OF prices
The steel corporation is now operat-
iug 10 about so per cent or It's ca
pacity. and II Is predicted that before
the summer ends 1t will be up TO 20
per cent.
The independent companies GEN
orally exceed 30 per cent. and some
of them are running up to 30 per
cent. Copper sales thus far TINS
month have been the heaviest OF amy
time since the trade depression set
in. and are estimated At about So
100000 pounds. the greater part FOR
export.
Greater activity is also being cN-
ncr!enced in the motor industry, but
this may be regarded as largely sea
son:.l What is OF Importance Is thai
unemployment IN Industrial ccntcrs
is being steadily reduced. Money is
plentiful. call money having loaned
a low as 2l-2 per cent. Commercial
paper IL now down To > per cent Tor
an classes. Tho Federal reserve
statement for the week showed n
decline OF s4o,ooo,000 in rcdiscounts,
which aye now at the loves, level
IN several years. This last item
however, is reflection OF the IN
active condition OF business OF the
rast months and the more limited de-
inand for capital.
fnc"mc Tax Payments Lower.
Tl. first instalimrnt OF income tax
payments was made on March 18th,
ana although IL Will be some time
before complete tabulations are at
hand it * already possible to per-
ccive n Ealing of in estimated re-
turns that will present 4 serious prob
lem in government financial opera
lions. The Treasury estimated that
The new tax law would produce
$500. COO oOc but it is possible that
the total Will not rcach S2,0oo.ooo.-
o0e. 1t proves that the trade de-
preston for 1921 was Il real thing.
Corporations that paid dividends were
in the minority, as were those who
made any profit II all. In the face
of these returns those extremists who
are bewailing the repeal of the cX-
cess profits tax do not seem to realize
hat The operation OF natural laws
cdualed the eNce..s profit themselves.
Just what may lave 10 be done to
make Up the deficit cannot be fore
Swallowed as yet but 1t would not be
in the least surprising If Congress had
10 report TO the sales tax regardless
Of the prejudice against it,
In the face OF nj this the financial
officers Of the government. those who
are in daily contact with affairs. have
appeared before the Ways and Means
Committee of the House of Represent
atives aud have soicmniy warned
Congress of the serious economic dis
turhancc which would follow the pas
sage OF the bonus law. These warn
inas have been completely ignored.
ana the committee reported the hiil
10 the House Notwithstanding. The
members OF the committee fully
realized that the government nnan-
c1ers knew exactly what they were
taking about, and the conclusion To
be arrived at is that the coinmittc.
members also knew exactly what they
were doing, namely. reporting a bill
that could never hope TO become law
II is inconceivablc that the Scnat.
VIII agree to tho b!llin it's present
form. and there is already assurance
That II by any chance IL should pnss
both houses OF Congress. the PresI-
den: viii veto IL.