The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-04-25
THE BUSINESS OUTLOOK.

Last weeks financial and business
I review issued by Henry Clews is the
most optimistic that has appeared
from that source in a long time.
About the only cloud on the CONNER
ciaI horizon in Mr.. Clews's view is
that of the revival Of the bonus meas
ure in the senate, which he says now
apparently threatens to result in pre-
senting a measure of some kind to
President Harding" In continuation
he says:
The renewed threat of the bonus
has already had a bad effect upon
liberty bonds and indirectly upon the
prices of other securities which are
affected by treasury conditions IN one
way or another. Should a sales tax
be enacted, as is now proposed by
Senator Smoot, in the form of an
of course come as an addition to ex-
listing taxation, and if it included. as
many expect. a severe tax upon trans
fers of stocks and bonds the result
would be of course exceedingly unfa-
vorable to the investment market.
Proceeding to enumerate some Of
the circumstances and conditions IA
vorable to the future of the country's
business the financier says:
Judge Gary's address before the
United States Steel stockholders in
which he estimated an average oper-
alton to the extent of about rs per
cent of capacity in the steel plants of
the country was naturally very en-
cours ging to those who have been
confident of .the future OF the metal
industry. Equally reassuring has been
the report of steady advance in orders
placed with equipment companies,
while copper conditions have also
III
tomobile manufa cturers seems to bid
fair to attain something like the level
which they had reached in the carly
post war period.
Activity is now spreading decidedly
into nearly all basic Industries and
talk about unemployment has practi-
cally ceased altho there is still of
course some of it in various parts of
the country. The question of employ
mcnt is today largely a matter of |
wages rather than of opportunity for |
work. Railway earnings continue to |
the favorable position which |
they have been developing during the |
past few weeks and the satisfactory |
shows that the investment public has |
reached the conclusion /
that the future has still better things
in store. Even in foreign trade the |
field where so much retardation has
occurred. latest figures point to a de-
cided and steady Improvement. For
eign trade seems to be once more be
a matter Of finance rather
than OF demand.
Coincident with this improved out
look in the industrial and financial
fields. it is pointed out, is the better
, gricultural prospect which has made
Itself evident of late. The steadily
improving prices for farm products
are encouraging a substantial acreage
and the movement of products to
market has been more satisfactory for
some time past. What is still more
favorable is the fact that retail and
wholesale trade indexes are now
showing better purchasing power in
many OF the agricultural districts
While bankers report a growth OF loan
extensions that indicates an abundant
supply of funds for legitimate farming !
demands.
The fact that not only farm prices /
tut also wholesale prices in other {
ields have moved upward. as shown !
" recent index numbers. the review !
avs. appears to suggest that they l
lave now reached approximately the
urning point in the shift from depres-
ion to business activity. Agricultu-
al prices evidently passed that point !
ONE time ago. 7