The Washington herald., 1922-02-12
REPORTS INDICATE
BETTER SITUATION
MUNITED KINGDOM
C8hvalescence in no Dam
ger of Relapse, Reports
Commerce Attache.
FINANCES IMPROVE
Budget on March 81 May Re-
port Balance Due to In
come Tax Yield.
FINANCES IMPROVE

The United Kingdom in conya-
lsscence appears to be fundamental
ly sound and in no danger of a re-
lapse. says Commercial Attache Tow
er in a cable to the Department of
Commerce. Continental markets
for pig iron are reappearing and Ire
land may offer a fertile field for
general trade. Threatened wage
disputes did not materialize. as labor
wisely accepted a further drop in
the cost of living as a part COM
pensation for the cut in wages. THIS
strength of the general financial
condition has improved in proper
tion to a heavier yield from income
taxes. increasing the likelihood of u
balance in the budget.
Financial Condition Better,
The income tax yield. usually most
favorable in this final quarter, in
creased to such a degree in jan
uary of this year that II Is quite
possible that the budget may on
March 81 report a balance rather
than the generally anticipated def
cit. In addition the floating debt,
at f1,154. 100000 on January 81, was
121.O0O,00 below the figure of
Is
duction was f106.OOO, 900. The exact
reaction of this situation upon the
plans to cut expenditures by $780,
100000 in the next fiscal year can
not be predicted. One possible de-
velopment may be a reduction in
the income tax. Already strong
financial and business pressure has
been brought to bear TO reduce the
income tax at least one shilling in
the pound, with the purpose of lib
Grating fifty million sterling for
business needs. The movement Of
trade, so sluggish of late, appears
to be gathering momentum, as new
securities for .E144.9O0.000 were Is
sued in January, eight times as
much as in January. 1921. The
stock market during the month re-
fiected a strong position in rails.
but a rather weak industrial mar
ket, due in part to the Dunlop re-
port Of a loss of over fs.000,000 in
1921.
steel Market Unchanged.
British pig iron. is noted. following
further price concessions. This rep
resents perhaps the release of or
in prices was being awaited. Con-
tinental competition in pig iron Is
not 50 evident in the British market; /;
on the other hand, British orders
have appeared in small lots in Bel
EIum and Germany. Twenty more
furnaces were active on February
l. The steel market shows little de-
mand. and no material recovery is
anticipated before April. Steel in
terssts are asking for lower carry
ing charges on account of conti-
mental competition.
Figures of coal production and
export in January fell slightly be-
low those for December. the output
in the third week reaching 1850, 900
tons 1t must be remembered, how
ever. that production in 1891
reached its maximum in the final
weeks The industry is not yet sta
bilized. Coal owners demand furth-
er reductions of railway charges. as
indeed such are urged for all lines
of Industry. Coal miners protest
that wages must be raised to the
subsistence point agreed upon. The
Miners Federation has requested an
investigation into the coal situation,
with a view to getting some dras-
tic Improvement for the industry"
Lower Cost of Living.
In spite OF the generally lower
trend of wages, threatened strikes
have not materialized. This may be
attributed largely to the parallel
fall in the cost of living. Thus, the
London Times index shows a drop
in January of 2.2 per cent. to 1885
191S prices equal 1000. Foodstuffs
rdse 1.3 per cent to 10 (22 items)
but materials declined "a per cent,
cas- items) to 1918. The number of
unemployed, 1915, 100, is still very
high but there Is no serious unrest.
Agricultural prospects are favor
able, as increased rainfall in Janu-
airy fhelped. crops and planting
From Southern Scotland to the Eng
lish Midlands there has been an
outbreak of hoof and mouth dis
ease, the worst reported for 80
years. This may reopen the old con-
troyersy as to the inadvisability of
imports of live cattle. =.
II Is reported that good orders
from Ireland are being received by
various lines, notably cycles, and
that statesmen are eagerly seeking
business. The British themselves
nave been somewhat surprised to
learn. that such a large share of
their trade has been with Ireland.