The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-02-20
FINANCE
AND
BUSINESS IN
BY b. c. FORBES

Mid.winter finds things distinctly
on the mend.
Forceful business men, find'
are working on plans for expan-
sion. Only the trailers are sui
concentrating on retrenchment. New
plants and plant extensions are
planned on a scale much beyond
what is generally known. While
much of the enormous amount OF
money recently raised by bond and
stock issues has gone to liquidate
bank loans, hundreds OF millions OF
IL ia to be used for building con-
struction and for business expan-
sion. The spending Of this money
will shortly begin to exercise a
stimulating effect.
In journeying rather extensively
throughout the country during the
last two weeks. encountered much
that is encouraging. Even classes
and sections that have been haroes'
hit 4. are reviving their spirit conn,
dent that the worst has passed anu
that better times are knocking at
the door. This sturdy mental at,
| titude is of no slight consideration
in trying to analyze the propaoie
course of events.
| The development Of most funda-
mental importance is the rise in farm
products. Wheat we'll above $l.4o,
corn at rs cents, oats at so cents and
cattle and hogs moving upward mean
a great deal. Cotton likewise has
been doing a trifle better. So has
| wool.
Meanwhile. the things which our
farmers have to buy are tendlhs
downward.
This process toward restoring
fair equilibrium is of incalculable
value. Its continuation would shortly
bring about a distinct revival in the
buying power and the buying actiVl-
ties of our agricultural population.
The lack Of such buying power and
buying activity has been more re-
sponsible than any other thing tor
| the slowing down of most INDUSTRIES
More buyers arrived in New YORK
on one recent day than on any pre-
vious day on record. This TENDS 10
confirm what has been repeatedly
emphasized in this column regard
ing the dearth OF merchandise
throuhout the country, and the pos
s,bility Of a pronounced scarcity be-
fore many months pass. The pur.
chases made by this unprecedented
army OF merchants in search OF
| goods cannot fall to have a quicken
| ing effect upon general business.
Do not overlook the marked IN
crease in the amount or 1relght pc
ing moved by the railroads. Inc
| latest figures show an increase Tor
| the week of more than 10000 loaded
| cars In the first week OF February,
| car loadings showed an increase or
no less than $780, over the first
week of January. The latest total
Is far ahead of a year ago ana almost
UP to the 1920 mark. 80
Similarly the number OF lole
freight cars dropped almost ZZ,ooo
during the first week OF this month
Average quotations for stocks on
the New York Stock Exchange last
week reached a new high record Ior
the current year, and passed the
also continued to exhibit buoyancy.
They stand almost ten points above
the average level Of twelve months
ago. .,.
The Bank cf England's reduction
Of its discount rate from TO 4f2
nor cent ia expected to be followed
by reductions in Federal Reserve dis
count rates at the principal centers
Ihere especially as last weeks returns
showed a resumption of the rise In
the Federal Reserve ratio. This ratio
I-76I5 per cent for the whole system
lis more than 25 per cent above the
ratio of a year ago.
Money rates in Wall Street would
Enthusiastically decline were bankers
10 nut out all their loanable funds
hut this they are not doing, less be
cause they fear to foster secondary
initiation" than because they want
j profitable rental rates for theh
funds.
There may he no harm in main
tanning present rates for money for
purely speculative purposes. but in
dustry and business could stand the
advent of lower charges for accom-
| mediation and for capital. The
brainy financiers and business mer
| who govern BRITAIN Ddllhlile sS =
TEN have reasoned that low none,
rates are calculated to help business
, and II would be well were Americas
leading bankers to consider shapine
similar course. The very high toll
exacted for credit and for capital
have had not n little to do with ag
gravating the business troubles we
have suffered during the last eight
aan Months
The principal foreign exchanges
have again moved upward. Sterling
above ABS. francs at $50 and lira
at 4.SS all show very substantial
gains over a year ago. These gains
equal IL per cent for sterling, 22h
per cent for francs and 1914 per
cent for Ira. Marks, not unnatural
, ly, felt the strain of the ten-day
gold payments to her victors. Incl
dentally, the Canadian dollar Is
worth here 10 cents more than a
o1n. 10 y,pxy within AZ cents