Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-03-06
EVIDENCE OF
PROGRESS IN
TRADE LINES
Political and Economic De-
velopments Abroad Help
Market.
FEWER CARS NOW IDLE
Special to Indiana Daily Times
and Philadelphia Public Ledger.
BY MONITOR.

DIT less degree Speclue bearing upon the
present and future prices Of securities,
have been of unusual interests. They
have included not only satisfying eve
dences of the progress being made at
home in the processes Of reconstruction,
out ais opolitical and econmic develop
ments abroad which in some degree have
found reflection in our security markets
snd eventually must exercise profound
influence.
In the real progress Of domestic eco
nomics the unprecedented, for this sea
son Of the year, decrease in idle cars is
The most convincing evidence that COM
merce and industry are cOnvalescing
from the shock Of after the war read
lBstment COnhrmatOry evidence is sup
piled by the figures of larger operations
Oy both the iron makers and steel mills
Of the country. An increase in steel
making from IS per cent of capacity
.ast June to Go per cent at the present
zine, reported by the United States Steel
Corporation cannot be beiittled as an
index Of the progress made in one of the
1Ountry's greatest basic industries.
The evident acceptance by the building
trades of agreements by which they
abandoned previous practices and regu-
latiOns restricting output, is having Its
effect in increased activities in this line
throughout the country. This has been
one Of the greatest Embellishments In
the whole economic field, and with labor
apparently returning TO a more sane idea
OF values, an attitude which has him
dered much needed activity in a vital
field, a resumption Of building operations
is indicated on a scale commensurate TO
supply the needs of the Nation.
The financial community for some
months has awaited with fear and trem-
bling the annual reports of the trans
portation companies and Industrial coz
p0rations generally. which would reveal
the results of 1921 operations. The
majority of such reports have been made
public and few OF them have been as
terrifying as most of the pessimists had
predicted. It was not the unfavOrabte
exhibit made public by the Republic
Iron and Steel Company which temper
arily resulted in unsettlement in tho
security market this week. That IN
settlement was due rather to the seem-
ingly needless passing of the dividend on
the preferred stock. Only in 1914, hao
this payment been omitted since the o.
ganizatiOn of the company in 1889. The
disbursement required only about ST.
10000 and with the report showing a
surplus OF nearly S30,000000 there was
a tendency in the financial district to
criticize the ultra conservatism shown
by the management. st illustrated
clearly the sharply changed frame Of
mind which obtains in industrial man
agement now as compared with the
booming days Of war.
The annual reports of the railroads
have proved generally more favorable
than Wall Street had expected. The
repetition of labor troubles in progress
or impending in the daily press In the
last half of the year had conveyed the
impression that the roads were in dire
financial straits, an impression confirmed
by many official statements issued by
railway executives. 1t is apparent now
that while the transportation system OF
the country was desperately sick at
times. its condition never was so hope
less as some OF the outgivings implied.
Satisfactory profits are shown in large
number Of these reports and increased
freight movement is becoming a matter
Of weekly routine.
In the foreign field first importance
must be given the advance in the quota
tons Of all the major European e4
changes to the highest quotations re
corded in many months. Sterling during
the week sold above S4.44, and the high
est price since the summer Of 1920 when
the quotation was S31S. Francs have
risen from 80 last year ts more than
- cents TINS NEGA. IN uELduGL
new explanation for the latest advance,
Wall street has ascribed it to the twenty
year treaty of defense between France
and England. If this explanation of the
immediate movement Of the week is cor
rect, it indicates 4 reversiOn of the in
fluenees from the economic considerations
which more recently controlled this mar
ket to the political considerations which
dominated it in the early days of the
Washington conference. Il is probable
that International bankers have under
rated the power Of political events in
moving the market for exchange pre-
Cisely as many Of them moderated the
nature Of the economic conditions which
we're visible last summer.
While it is true that a rise in exchange
rates on political developments is partly
a sentimental advance, il is true also
that sentiment plays large part in the
flow Of gold and goods from one country
to another. Sentimental influences of
this kind easily might be more powerful
in influencing exchange rates now than
before the war
1t was almost a shock to the financial
community TO read during the week that
Egypt mas been given its political free
dom by Great Britain. The announcement
caused only passing comment but it is A
Development which must exercise a con-
siderable influence upon our cotton and
cotton goods business. The event. for
It may be truly classed as such, is re-
markable is that Great Britain grants a
political concession to gain an economic
end. while Egypt used her economic
supremacy in given field to gain a
pol wal victory. Just. how far reaching
tbs may prove to be is indicated by the
situation in which Lancashire found IT.
self The textile industry there has been
staS2ant. There has been poverty and
suffering among the mill workers with
its accompanying social unrest. Ian
caShiER mills are working and this means
that not only Is unemployment relieved.
but that American cotton again is in de-
mand. In the long view it must react
favorably upon our cotton growers and
must also make its effect felt in the mar
kets for foreign exchange.
The possible fall of the LLOYD Georra
coalition ministry looms large on the
British political horizon. With his custom
airy courage, the British Premier has
demanded a fuller measure of support
for the coalition as an alternative TO his
resignation. Whether his opponents will
dare 4 general election now is a question.
Lloyd George has achieved much in the
recent months. not the least being a
settlement Of the Irish question, and on
these achievements he could go before the
country with a powerful argument for
his retention His opponents, could they
wait until after the presentation of the
budget, would lind in it plenty of ammu-
milton. But before them may come the
Genoa conference from which results of
such magnitude may result as to over
come the influence of the great budget
which must be asked and carry the