The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1922-01-07
GENERAL BUSINESS CONDITIONS
From the National City Banks
Monthly Business Letter
New York, January. 1922.

New York, January. 1922.
The third year has passed since
the armistice vas signed, and the
world is yet far from restored to nor
NAL working conditions, not to speak
of recovery from the losses sustained
in the conflict. In Europe much work
has been done for the rebuilding or
restoration of properties that were
destroyed or hat suffered deteriora-
ton, and progress has been made in
the reorganization Of production. The
railroads are in much better condition
than in 1919, the coal mines have
been in part restored and industry
generally. SO far as physical facilities
are concerned, is now able to oper-
ate in a fairly efficient manner More
over social conditions are in some
respects notably improved. The rev.
o~lutionary spirit has subsidized, the
people appear to be willing to work.
The crops in Europe west of Russia
were good in 1921, the agricul-
tural class is doing well, and in most
OI ING COuutIIcS Ou tnO COutlnCht tnat
class Is very powerful in the govern
ments and exercises a conservative
influence.
The most serious feature of the
European situation is the state of the
c~urrencies. to which we gave some
attention last month. The govern
ments have been running upon a scale
Of expenditures ever since the war
that they have been unable or I'M
willing to meet by taxation. and have
resorted to currency issues to cover
the deficits, until the position of some
of them is critical. AS yet, the peo-
pies are not sufficiently impressed
with the gravity of the situation to
support the governments in neces-
sary measures of reform. There is
un~willingness, both on the parts of
governments and peoples. to face the
stern conditions Of the time. Pro-
duction Is reduced, trade is democrat
ICED, the u of the peoples are
diminished, and until these dificul-
ties are overcome they must be met
by adjustments in public and private
expenditures. The fall of the Ger
man mark and notice from the Ger
man government that it will not make
the January ~reparations payment in
full. has reopened the ~reparations
question, which of is the par
amount issue in Europe.
HOPEFUL SIGNS
Over and against these disquieting
conditions there have been of late
certain important Developments,
which give promise of substantial re-
lief from some of the burdens Of tax
alton. Of better international rela-
tons and a better spirit in the world.
The international conference. in the
city Of Washington after raising
hopes very high, caine to a disap-
pointing conclusion upon the subma-
rines, but this will not obscure its
very substantial achievements. The
prospect for a settlement Of the stat
us Of Ireland which will give peace
and the stimulus Of new ambitions
to the Irish people and at the same
time relieve England from the ex-
pense and distraction which the Irish
question has involved. is also Of large
significance. The cooperation and
leadership of England is needed in
the financial rehabilitation of Europe,
and peace with Ireland is an impor-
tant condition for her effective par
ttcipation. Finally. there are signs
in France of a growing appreciation
of the necessity for maintaining the
financial stability of all Europe. Civ
ing ground for hope that at the COM
ing meeting Of the Supreme Council
Of the Allies some plan will be de-
veloped by which the immediate mem
ace involved in the r~eparations situ-
alton will be removed There are
certain facts which must have con-
s~ideration. whatever the Judgment
may be a. to Germany's moral obli-
cations. The state of world markets
Is not such as to make 1t possible for
Germany to build up great export
balances at this time, and as a mat
ter Of fact. Germany's imports have
exceeded her exports during the past
year.
CONDITIONS IN UNITED STATES
In estimating the outlook for 1922
1t is necessary to consider the causes
of the depression and inquire to what
extent they have been removed or
are likely to be overcome. The rapid
decline Of the European demand for
our products IL one of the causes. As
compared with the war years, our
exports during the last year show a
great falling on. but as compared
with years before the war they are
we'll above the latter in the aggre-
gate. although not in all lines. Ex-
ports Of cotton for the fiscal year end
ed June 80. 1921. were about 3,0O0,-i
900 bales below the average of the
nvs years next preceding the war.