The Washington times., 1922-10-08
Weekly Financial RevieW
By HENRY CLEWs,
of Henry Clews & Co., New York Bankers.

while. the coming three months will
be one Of the heaviest periods in
transportation that the country has
ever known while the business will
be done on a fair margin, at least,
OF profit.
The Bankers Sessions.
A significant event of the week has
been the convention OF the American
Bankers Association held in New
York city and notable for its discus
sion of important domestic and for
eign questions relating to financial
and investment prospects. Opposi.
ton to branch banking and doubt
Of the wisdom Of the present collec-
tion system of Federal Reserve banks
were evident throughout. but, in ad-
dition, the Association expressed
itself strong on such questions as
the undesirability OF further issues
Of tax exempt securities and the
necessity Of readjusting international
debts to n workable basis. The in
teresting feature OF the session from
the practical standpoint was the gen
eral prevalence of confidence in the
banking situation Of the present day
and of firm belief in the favorable
monetary and financial outlook Of
the immediate future. There was a
more normal attitude with respect to
current problems of finance and a
more assured grasp Of existing con-
ditions than has been noted at any
annual gathering of the kind since
prewar days This speaks well for
the stability of industry and Of in.
vestmcnt, and assures a steady sup
port of the market in it's legitimate
interests, which might otherwise
have been far from certain.
Effects Of Foreign Situation.
The foreign situation. although
bidding fair to reach an adjust
ment for the time being, has had
some practical effects upon the
business and financial situation that
cannot be neglected. Among these
Is the continued unsettlement and
slight tendency to deterioration in
exchange. This has continued with
some Interruptions from time TO
time, owing to the doubt that was
felt concerning the probabilities Of
the European political prospect. A
greater degree Of exchange stabil-
ity has developed Of late and has
been accompanied by a much better
demand for foreign currcncies. 1t
remains true that American hold
crs are still carrying very large
quantities Of foreign currenCies
which they will be unable to get
rid Of and they have naturally be-
come much less active buyers
through perception Of this fact.
Although money has hardened
slightly, the change Is due only to
increasing commercial demands, and
not to any lack of funds, as is
shown by the fact that member
hanks. reserves are unimpatred, and
the reserve percentage of the Fed
eral reserve banks continues strong
at ia per cent.
Market Review and Outlook.
Aided by remarkable activity in
the Standard Oil group of stocks,
and the better political situation
in the Near East, the demand for
stocks during the past week has
exceeded the supply. To be sure.
considerable part Of the buying has
emana' ed from the professional
element for the purpose of evening
up short commitments; still, buy,
ing Of this kind is just as effective
in advancing values as purchases
made for long account. Cheap
money is always a market factor
of prime importance, and It can.
not be denied that this at the
present time is Of great aid to those
who believe that current prices for
the rails and the better class OF
industrials are still conservative
and will be more fully demonstrat.
ed in the coming months rs bust
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