The Washington times., 1922-05-28
Weekly Financial Review
BY HENRY cLEWs,
of Henry Clews & Co., New York Bankers

Veloped plans for q large German
loan which, IL consummated, ought
to result in tiding over the eHler-
gency which a month ago caused
such serious fears OF direct
breach between France and Ger
many and perhaps between France
and Great Britain. There Is moth
ing In the present situation to
create a belief in any very decided
improvement Of German exchange,
but the effect OF the negotiations
has certainly been to stabilize pres
rnt exchange rates. They have. In
fact, fluctuated but little OF late, the
belief plainly gaining ground that
the outcome at Paris will be at
least to protect existing condition.
As for The Hague conference, II Is
still uncertain how successful will
be the efforts to secure the general
support OF the various countries in
current negotiations with Russia,
but the outlook Is at least more
favorable than two weeks ago. All
things considered. progress has been
made in bringing about an adjust
ment with European conditions even
though the degree OF advancement
may not be altogether satisfactory.
Federal Legislation.
Notwithstanding the forecasts Of
a revival of the bonus bill, there
seems an increasing degree of con.
fidence that the executive depart
ment will be disinclined to accept
any such measure; while, on the
other hand, Congressional inclina.
don to insist upon its adoption has
lNy h,, a,
feat of various conspicuous bonus
advocates who sought denomination,
as well as by the development of
scandals among bonus lobbyists and
other advocates. Additional taxa
ton at this session OF Congress is
evidently to be avoided, II possible,
fact which the general public will
receive with satisfaction, and which
naturally has an encouraging influ-
ence upon general market condi.
tions. Adoption Of the so-called
dirt farmer bill." amending the
Federal Reserve act. has been effect.
ed In such a form as largely to
eliminate the more Objectionable
features originally present in the
legislation.
Market Review and Outlook,
While market activity has some.
what lessened, strength is still the
outstanding feature in almost all
groups. Better business conditions
have encouraged the public to buy
more freely, although II has shown q
decided preference for the more con.
servative elements in the list, The
money situation has been dwelt upon
to such an extent that the marking
up or down Of rates possibly attracts
an undue degree Of attention, Pool
managers would be better pleased II
they could count with certainty upon
a given figure. The market is still
torn by conflicting emotions. Among
the professional element, half are
playing for a reaction, while the
other half are counting on easy
money, trade expansion, oombinA.
ton talk and the support OF the gen.
eral public to put prices up. II can.
not be denied that these arguments
have potential backing. About the
only thing that can be said in opposi.
ton II that since the bull campaign
started several months ago, there has
been no backward step worth consid.
ering, Notwithstanding II In known
that there has been distribution on a
liberal scale by those who acquired
stocks at very much lower prices. It
is also observable that the general
public now show an inclination to
take profits as stocks are bid up, first
In one direction and then In another,
and this is calculated to keep the
market from getting into an un-
healthy condition. Taken as a whole,
therefore, the outlook 10 still snoour-
aging.