The Washington herald., 1922-09-17
FINANCIAL
REVIEW OF WEEK
Industrial Recovery Has
Assumed Wait-and-
See Attitude.

with both coal strikes settled and
with the shopmen's strike partially
settled and partially broken. wait
and-see attitude has continued with
regard to Industrial recovery. Bear
ish and bullish traders meanwhile
have had an opportunity to test the
strength of their positions and the
attractiveness of their views with
relatively little disturbance from
day-to-day news. So far neither
party can be said to have demon
strated a marked advantage. Bear
raids on a few selected issues have
produced sharp breaks. but these
declines in themselves have been OF
very brief duration and their effect
on the rest of the list have been but
transitory. Altogether the market
has withstood its test reasonably
! we'll although there is still some
difference of opinion as to whether
a seasonal reaction is on the cards.
Steel Recovering.
Available evidence as to the trend
of things continues to be encour-
aging. The steel industry is re-
covering from the effects of fuel
restriction rather more rapidly than
had been expected. A so per cent
of capacity basis Of operations
seems to have been attained. and
the limiting factor now is short
age of cars to carry the industry's
products rather than an inability to
obtain coal Buyers. however. re-
main cautious, and the higher prices
which have been mentioned recent
ly evidently must be subjected to
some discount. Relatively little bus
iness is being placed at these prices,
and the trade regards them as pre-
miums for prompt deliveries. 1t is
expected that these premiums will
disappear in the course of the next
few months. leaving a lower. firmer.
and sounder basis for business.
Car loading returns also continue
to improve. The number Of cars
loaded in the week ended Septem-
ber .. which amounted to $4,000
cars, sets a n W high record fer the
year. This total Is 1900 cars
greater than that in the preceding
week, the gain being due principal
ly to an increase OF $4,000 cars In
coal loadings. The volume OF gen.
eral merchandise moved is however.
also greater. Now that the anthra-
cite movement has begun. IL is al
together probable that the total
amount of freight being carried by
the railroads compare quite favor
ably with the largest amounts IN
the history OF the country, being ex-
ceeded in fact by the movement In
only a few weeks of 1920. Btu
minous coal output meanwhile is
running close to the 100000 tons
a week mark. Resumption of nor
NAL anthracite production will be
slower, but certain mines and GER
tain hard coal roads already are
showing an ability to gather mo-
nentum rapidly. Barring unfor-
seen disturbances and unusually se-
we're weather. IL would seem that
our fuel situations are in q fair way
to reasonably satisfactory solutions.
In the foreign exchange market the
movements based on the repara-
tions crisis and the vagaries O. Eu-
ropean politics have been supple
msnted by those OF the normal sea-
sonal variety. The new forces have
been particularly noticeable In the
case Of sterling, which throughout
the earlier part OF the year was i'm
pressively immune to the weak
nesses which beset the French franc
and the German mark. Now. how
ever, Britain Is again buying grain
and cotton. while the supporting in
huence Of American purchases OF
British coal are on the decline. In
addition IL Is likely that part Of the
continents autumn purchasing Is
being financed through London,
while Britain Is also under the ne
cessity Of making arrangements for
paying the interest on her debt to
this country. Recessions in the
pound are the natural result, but
when the quality OF the manage
ment England usually gives such
operations is recalled, any major
declines seem unlikely.