Omaha daily bee., 1922-05-29
Financial


New York. May .s.-li one were
TO Judge purely from the financial
markets which prevailed during
most Of the past week, u might be
inferred the events IN the political
and economical world had ceased 20
move, Prices OF stocks swung hack
and iefth IN a confused and meaning
less way, prices OF bonds hardly
changed, foreign exchange recovered.
but with cautious slawness, Mos,
people arc aware. however. that the
events which a preceding rise or fall
IN the markets had ioreshadowed do
not come 10 an end when the mar.
kets halt. In the present ease /, is
pretty clear that the tangible occur.
fenees 10 which the rising markets
had been pointing weeks ago are
only now beginning 10 come into
view.
On trade recovery. that is clearly
true. The markets reached their
pitch Of high activity ia April, but.
although what used TO be called the
industrial weather signs OF business
revival were IN evidence AZ the time,
il is barely fortnight since the mer-
camille agencies began 10 tell US IN
their weekly reports OF visible ex-
pansion IN trade activity. What is,
however. OF greater importance TO the
general outlook. is oaly within a
week that evidence has become Wis
ible OF constructive work IN the way
OF removing the larger obstacles
iiom the path OF returning financial
confidence.
Conference Failure.
No doubt Lieyd George and some Of his
fellow delegates thought they were per.
forming this necessary task o, Genoa.
bu, everyone now knows tno,wiihstsnd'ns
the premisr's speech 10 parliament
Thursday that those efforts. even from
the economic viewpoint, were misdirsctesi
and foredoomed 10 failure.
Tho exchanges viii stabilize themselves
when nations shall have brought their
foreign trade and International eurrencira
into order. while as for Russia, serious
financial markets were never sbis TO pie
ture tn. reern, incidents at the Italian
conference except M they might have
litical faith and financial assets between
the william Pitt whom Lloyd George
cited and the Robesrierrss and Marats for
Two Of the most formidable obstacles
In tho way Of genuine revival OF conf
denoo have been the position OF Germany
In regard 10 reparatlons and the position
OF our railways The one seemed TO
threaten alternately national reputation
or international collision: tho other left
a cloud of uncertainty over American H.
nance 40 long as the question Of trans
portation rates remained unsettled.
Explains situation.
That explains why all the markets Of
the world greeted with something like
the assembling OF the confer
ence Of banking experts to discuss a
German loan. II also explains why tho
New York stock market failed TO show
the slightest unsettIemcnt over the inter- |
state commerce commissions announce |
ment Of 10 per cent cut in railway
freight rates.
There had been frequent complaints |
that these problems were not taken up
for settlement long ago. II may be
however. II either question could
have been considered with the present |
prospect OF satisfactory settlement very
many months ago. German foreign
ticable before the worlds investment mar |
kets had shown their readiness and power |
TO absorb huge quantities Of new securi- |
ties. and this they had not shown con- |
clusively until well into 1922. 1t was inn |
possible to determine how to adjust the |
disputed claims for rates as between the |
railways and the shippers until some plain |
light had been thrown upon the problems |
of railway traffic during the coming |
months and on the reasonably certain |
Of the business situation.