The Washington herald., 1922-07-30
cIAL
SECURITIES HOLD
REMARKABLY WELL
IN FACE OF CRISES
Favorable News Proves
Signal for Sharp
Advances.

Win the strikes beginning. TO
exert an important restraining in
iuence on the country's business
the attitude Of the securities mar
kst during the past week has been
Interesting and suggestive OF
weakness there has been remark
ably little. On days when the pos
sibility of q long-drawn-out strug-
gle was in peoples minds. reac-
tions OF point or two were In
order. Even on such days. however.
the actual volume of liquidation
was small and professional selling
and other influences. such as bank
ing discrimination against certain
kinds Of collateral. were market
factors. Encouraging news. on the
other hand. was the signal for
sharp rallies Short sellers obvious
ly were nervous over the possi-
bility Of being surprised by a set
tlement while others seemed to fear
lest opportunities to purchase
stocks at existing prices might
vanish.
Coasistent Condition.
After All. the condition Is con-
sistsnt with the realities of the
situation. The strikes really have
been entering what might be con-
sidered the settling stage. Not un-
til recently have they really en-
barrassed industry. They were op-
Grating furthermore. through the
quiet summer season. when all
parties concerned could best AFFORD
to Kput up with their effects
Autumn Is, however. approaching.
The crops are to be moved Coal
must be carried to the Northwest
A further protracted tie-up would
deprive the railroads of much
profitable trafnc and would offset
the profits which coal producer.
might expect to reap on account of
high prices. The strikers. on their
side. undoubtedly are beginning to
feel the effect of the suspension In
income. General need for a settle-
ment Is, accordingly. in the actively
growing stage. II II was necessary
for the situation to become worse
before IL could become better IL
would appear that this necessary
preparation has been about accom-
plished-
Industry Not Crippled.
1t may be repeated that things
nave nut yet eOuc lar rHouBh "
seriously threaten a crippling of
industry's rate of operation has
been slowed down approximately
10 per cent II Is clear that abun-
dant plant capacity exists to make
good the loss. The production OF
automobiles has not as far as may
be determined suffered at all.
abovs normal. A car shortage Is.
to be sure. something of a prob
ability, but of all this shortage
granted a fairly prompt settlement
would not be likely to have a Sc
riously retarding effect on the
moderate business revival which
has been on the cards And as far
as the strikes themselves are con-
cer1ed the prospects are fairly en-
coutaging.
Optimism I'm Coal.
. The shopmen's representatives
and 1.-The President apparently have
arriyed at a formula which they
hope the railway executives may
accept on next Tuesday. Greater
optimism is displayed in coal trade
circles. and a railroad resumption
would greatly weaken the miners
resistance.
Reports from Europe meanwhile
are peculiarly perplexing. To out
ward appearances the French have
swung around to the British posi-
tions on the reparations issues.
They apparently are willing to
agree. to a moratorium and a sub
stantial reduction in the total
German obligation in return for
British remission of the French
debt and for REIMBURSEMENT by the
former of their share in the repara-
tionS Poincare gives the impress
sion of being on the aggressive,
asking that the conference be held
forthwith. The British on the
other hand now seem to wish to
wait until the other allies and the
Italians in particular can attend
the conference. and are not at all
sanguine over the prospects for an
agreement on a united policy.
This may be due to an unwilling
ness to go as far as the French
suggest in the matters of debt re-
mission and reparations renuncia-
ton; or 1t may arise from expecta-
fiors that ofhar and difHc,t1t suh-