The Washington times., 1922-09-03

to the cotton industry, but even
there the falling off leaves the con.
dition still points above the level
of the corresponding date last year.
High cotton prices, such as those
now prevailing in the market. will
make up to the producers who oh
tain a yield from their land for the
shrinkage in total volume OF out
put. The estimate remains more
over at about II .000, 900 bales.
Progress In Foreign Negotiations.
Although the week opened In o
discouraging way with extreme de-
preston in francs and marks, due
to- the belief that the reparations
discussion was practically hopeless.
the renewal of negotiations at Paris
has inspired new hope and announce
ments made late in the week point to
at least a tentative basis Of adjust.
ment. Recovery in quotations of
continental currencies has been the
result. This is a matter Of no little
importance at the present time. as
Is seen by the movement Of quota
tions for French and German securt-
ties which have varied widely dur.
ty as to adjustment. Unofficial an.
nouncement that President Harding
is watching the European situation
closely and that an entente has been
established between the United
States and Great Britain relative TO
debt policy has been well received,
although in the absence Of definite
information the public Is not able to
Judge very accurately Of the real
prospects. Meantime the movement
Of gold to the United States and the
definite announcement that Great
Britain intends to pay the first In
stalment Of interest due on her debt
to the United States on October l
has greatly tended to strengthen the
position of sterling, which now
moves quite independently Of the
continental currencies.
Domestically, the money outlook
has been ns favorable as ever. 1t
has remained unaffected by the har-
dening Of rates abroad, illustrated in
the raising Of its discount figure to
7 per cent by the Reichsbank. Reac-
ton from cheap money In England
appears to be in sight, but In the
United States there Is little change
to be perceived. Reserve bank port
folios continue with around 1885,
000, 900 Of bills. Crop moving de-
mands, whatever they may be. have
been deferred much longer than had
been, expected and there Is little
prospect that they will be heavy at
any time. The liquidation OF long
term loans continues with very
fair degree Of success.
Market Review and Outlook.
transactions have been on a some.
what higher basis during this week
than its predecessor; and the out.
side public, too, has shown more in
terest In the market prospect. While
on the whole the movement has been
strongly upward, yet from time to
time reactions have occurred. al
though no liquidation on a large
scale has been witnessed. To reiter'
ate what has often been said before,
stocks continue in strong hands, and
so long as this condition prevails not
much change In the trend Is to be ex'
pected. The action Of the market
shows that Il requires very little
good news to advance prices, and
that such recessions as have occur
red during the past several days are
merely temporary and natural de-
velopments in market that ID
working toward higher level. There
can be no doubt that an outside fol.
lowing is, being attracted by the re.
markable steadiness of the share list,
although public participation has
not attained large proportions. In
other words. Notwithstanding the ma.
terial advance that has already been
recorded, stocks as a class being still
held by strong interests, the dis.
tributive stage does not appear to
have been reached - get