The Washington times., 1922-03-27
g. BUSINESS AND FINANCE w5AzsH%GVSnD
FINANCE
RUsfNEss| I'm
BY b. @. FORBES.

/ 0y Ds W rONDx<Os i
The first day of spring saw both
stock and bond prices at new
high average price for the year.
stocks, indeed, touched the high
est point since the outbreak Of war.
The last week has also brought
more than an ordinary number OF
other encouraging developments. In
dicative Of unmistakable, though
moderate, Improvement In business
conditions.
Washington reports appreciable
lessening of unemployment this
month.
Railway traffic is increasing very
noticeably.
Index numbers all agree that the
prices trend recently has been slow
ly upward.
Building activity is becoming very
pronounced, and all indications
point to still greater expansion
within the next few months.
Not only are certain steel products
being stiffened i'm price, but new busi-
ness is now coming in equal to 10
rer cent OF the full capacity of the
mills, representing the doubling or
orders wi hin the last few months.
The number OF cotton spindles In
operation LAST month showed a mild
increase, although the New England
strike of mill operatives has since
seriously interfered with production.
Business Is gradually approaching
its normal state" reports the De-
;,artment Of Commerce. 1t adds that
in those industries which constitute
the backbone Of American business"
the improvement, as compared with
few months ago. has been very
marked"
Reports from agricultural States
are quite encouraging.
Bank reserves have again reached
a new maximum, and the latest
weekly Reserve Banks statement
reveals that remarkable progress has
been mace in easing conditions
where the frozen credits" strain
was greatest.
Rates for time money and mercan-
tile paper have declined, a fact of
much greater importance than fluc-
tuations in call money, in Wall
Street.
The principal foreign exchange
rates compare we'll with those OF
a week ago. A fresh break in Ger
man marks, to the lowest point
ever recorded, IL occasioning no sur
prise in well.informed circles. as 1t
has long been foreseen that Ger
many's whole financial policy could
lead only to trouble until a dis
tinctly better course was adopted
either voluntarily or through out
side pressure.
The resumption here is unre-
stricted paying out of gold and gold
certificates has been effected with
out causing the slightest ripple, the
demand for gold or gold certificates
in preference to other forms Of cur
rency being negligible.
So long as securities display buoy
ancy, the financial community is
not easily alarmed over other events
or threatened happenings.
Had we been in the midst OF a
falling stock market. the over
whelming vote in the House for the
bonus bill would unquestionably
ing. 1t actually had little or no
apparent influence.
The truth Is that the betterment
In security prices has been based,
not on any extraneous Incidents,
but almost wholly on the growing
conviction that American industry
and business are gradually regain
ing stability, solidity. and activity,
and that there is justification for
believing that the gradual improve
ment will be maintained and become
at least a little more marked as the
year advances. This faith Is enter
tanned despite unfavorable outcrop-
pings abroad and despite few dis
liked happenings at home.
Had the betterment In business
and in the investment markets been
less solidly based, we would prob.
ably have been experiencing out.
bursts of unsettlement at this time.
Not only would the. bonus action at
Washington have caused disturb
ance. but the threatened coal strike
and the support pledged the strikers
by the railway unions would un.
doubtedly have unsettled things
more or less acutely.
Yet, although the date set for the
coal strike is only a few days off
the security markets and the bust
ness world are moving almost abso-
lutely calmly. and, apparently, in,
differently. OF course, 1t should be
explained that in the highest finan.
cial and business circles the almost
universal opinion is that the
strikers will find themselves waging
hopeless fight, with public senti
ment strongly favoring action calcu
lated to bring down coal prices
Moreover, it is well known that re.
serve supplies of coal are very
large. Also, non-union mines are
counted upon to prevent any coal
famine even should the strike prove
protracted.
Some people, including certain
prominent bankers, are still pessi
mistic. They agree that recent ia
vorable developments will turn out