The New York herald., 1922-05-15
FINANCIAL NEWS
AND COMMENT
Firm Basis of Business In
provement Shown in Mar
ket's Actions.
STEEL TRADE EXPANDING G
Sterling's Action Proves Ex-
change Fluctuates on Eco
nomic Grounds.
TRADE EXPANDING

ments OF this year in business and
finance occurred last week, and if GER
tain facts and figures of much i'm
portance were slighted in public esti-
nation it was because the Bethlehem
Lackawanna steel merger overshadowed
them by its spectacular features. There
has been no other week in 1922 that
disclosed more clearly the underlying
factors working for business improve
ment. The stock market failed to re-
fleet statistics on steel orders, car load
ings and other constructive informa-
ton. for the reason that prices pre-
viously had gone far in dlscounting
business growth and period of profit
taking was due. The week end up-
turn. sharp and of broad application
as it was. presumably resulted more
from speculative exuberance over mer-
gers than a fresh realization that the
country had travelled far from the
depths Of industrial depression regis
tered last July. 1t will take more time
to determine whether sustained or
merely temporary forces We're behind
the vigorous forward movement Of
stocks last Friday.
There is value in reviewing the record
of car loadings in the final week OF
AprN and the extraordinary expansion
of contracts reported by the Steel Cor
poration during the last month. The
coal strike, quite naturally. has cut
down the movement of coal as COM
pared with the corresponding weeks of
last year. but the week of April 20
saw 10 per cent. more fuel loaded than
in the preceding week. Such a gain
bespeaks strong efforts to increase sup
plies from sources where the strike has
rro application, and il Irogress is main
tained on the same scale there is slight
question but that industry will get
along very well until normal produc-
ton is again realized.
Record of Business Increase.
1t was not coal car loadings, how
ever, which afforded the best record of
business enlargement. Car loadings of
merchandise showed an increase of So
per cent. over the preceding week and
10 per cent. over the aggregate in the
last week of April, 1921. A comparison
with 1919 is significant, for the reason
that business was becoming active in
the fourth month of that year. More
cars were loaded in the final week of
April than in the same week three
years ago.
The Steel Corporation, which reflects
pretty we'll general conditions in the
industry, must have shipped from its
mills close to 100000 tons of finished
products in April. but. even with this
heavy draft upon bookings, it was able
to cover the shipments with new orders
and have COZ, ,265 tons over. So large a
gain in a single month, excepting those
years when war requirements swelled
the total of monthly contracts-some-
been exceeded only four or
five times in the corporations history.
April was a tremendously active month
in steel, and there is reason to believe
that no appreciable slowing down has
occurred thus far in May despite scat
tered effects OF the coal strike. Ingots
were turned out at rate of 36.0Oo000
tons a year, which. II maintained for
a full twelve months. would show more
steel made than the full capacity OF
the country could have produced at 100
per cent. operations in 1918.
The steel trade unquestionably has
been more active lately than business
In most other lines of merchandise
otherwise we would be well along in
an Industrial boom. But the mercantile
reports from week to week have dis
closed a gradual growth of production
and sales. and the crop outlook is good
enough to suggest reasonably prosperous
conditions in agricultural territory in
the autumn.
Large Acreage In wheat.