The Washington herald., 1922-09-03

TRADING LIGHT
Activity in Stocks Is Conl
fined to Certain \
Specialties.

NEW YORK. Sept. a.-The exodus
TO the holiday resorts Of stock ex-
change traders resulted In hGht
dealings in todsy's short session.
Such activity as was In evidence
was confined principally 20 certain
specialties which were bid up for
gains Of a point OF more. notably
Studebaker and Western Union.,
Industrials in general were duffy
lower. Railroad issues made no
vigorous response to the threat OF
a general strike. butt practically ell
Of them sold on fractionally.
With soft coal production rap
idly returning TO normal. with a
settlement of the hard coal strike
Imminent, and with the belief grow
ing that the railroads are succeed
ing in breaking the shopmen's
strike. business men and Investors
are now turning their thoughts 70
anticipation Of the nature Of fan
trade. Some are ready to assume
that recent wage advances and in
crease in the price OF steel and coal
point to sharp. IL temporary, rise
In the general price level. that a
fall boom is in the making. 70 be
followed. perhaps, by q period OF
secondary Dehation. Others, on the
other hand point to curtsiled pur-
chasing power both in our agricul-
tural districts and Europe TO the
urban consumers resistance to high
prices, and to the comparatively
weak position of q number Of lead
ing commodities and industries.
Certainly important shortages are
at hand. Those in coal and steel
are perfectly obvious In addition.
ii is amply apparent. that the re-
sumption OF capacity coal mining.
coinciding with the autumn crop
movement will result in a scarcity
of railroad equipment. The latter.
in turn. is likely to impose a GER
tain restriction on the movement Of
general mercha ndise: coal and crop
carrying will receive priority. II is
precisely the measure Of this re-
striction which keen observers are
now trying to estimate. II the move
ment Of the ordinary commodities
OF trade is to be hampered IN an
important manner. a much better
case can be made out for a raise
in the general price level.
Finding the answer TO this prob
lem is a matter Of no slight din
Guilty. Uncertainties abound and
precise estimates are impossible. A
useful suggestion of the course of
things may be had, however, from
the position and prospects OF the
steel Industry. II is here that the
shortages of coal and transporta-
tion are most acutely felt. The in
dustry falls in the third or lowest
class Of priority. yet is dependent
on coal supplies to a peculiar de-
gree. Accordingly. the present
shortage of fuel has brought TIE in
dustry down from a 15 70 80 per
cent Of capacity basis of operation.
Embarrassment undoubtedly will
result this fall from the car shortage
but such a condition is not unusual
during the autumn. and there is no
reason to conclude that the coming
embarrassment will be so great as
seriously to cripple the progress
Of the business revival II may he
pointed out in addition that under
any circumstances the revival prob
ably would be moderate rather than
pronounced. One may conclude.
therefore. that a continuation of
the "spotty" Improvement Is h'
prospect with a maintenanc nee OF rel
atively cheap money and steadiness
In securities. 20