The Washington times., 1922-08-27
A"4gssssss "4gsgssAAHHHHe EAAHHHHe BUSINESS AND FINANCE 5HH5
Weekly Financial ReuieW
a BY HENRY cLrWs,
OF Henry Clews b Co., New York Bankers.

Indu trial developments have
continued highly favorable to
stock market gains. Mexican Pc
troleum's success in settling its tax
dispute with the Mexican govern.
ment has naturally given that
stock an upward tendency. while
other oils have tended to benefit
IN sympathy with 1t. This tend
ency has been helped by the general
now about reached their limit. On
the other hand, there has been
quite decided strength In the dis
tributive shares, due to Increasing
evidence that retail trade Is grow
ing very largely In volume. There
are many indications of this tend.
ency, and II will be accentuated
by the increases In wages which
have lately been announced by some
leading Industrial corporations. As
for the latter. they have followed
a policy which Is perhaps open to
some questions in advancing wages
at this time, since their earnings
for the past few months do not
appear to warrant the step. The
market has shown its doubt con-
cerning the action taken by adopt
Ing a hesitant attitude toward these
stocks.
Money and the Foreign Outlook.
While the new demands made by
France upon Germany in connection
with the efforts to collect repara-
tions claims have proven SO severe
as to drive the mark down to a new
low point-between five and six one,
hlnhFadfha nf oil "a
ceding for parallel reasons-financial
conditions have nevertheless i'm.
proved during the past week. Great
Britain has developed a better for
eign trade balance which has enabled
sterling to hold its own in spite OF
encouragement in Continental af-
fairs. Our Federal reserve state
ment, with q portfolio Of only $685.
600. 900 on August "a and a reserve
! OF 1913 per cent, shows no increase
In current demand, and reports from
the interior point to a continuously
large surplus Of available funds in
the hands Of country banks which
are able to get an income best by
| placing their spare cash in the stock
| market, Continuation Of abandon
ment and reasonably priced money
| for some time to come thus seems to
beaassured.
Market Review and Outlook.
The market during the past week
has attained a very decidedly higher
level Of activity, and the interest on
the part Of the public has been mani.
festly greater. Many persons have
been waiting for an official announce
ment Of the end Of the railway strike
before entering the market. believing
that when the close was officially
announced there would be a good
deal Of realizing. Such reaso oning
has neglected the fact that the stock
market anticipates Developments.
and It Is a recognition of this fact
that has had much to do with the
maintenance of high prices. Dis
couragement over the continuance of
the controversy has been natural,
but has not exerted much practical
effect. 1t has been significant that
the industrials as a whole have given
an even better account Of themselves
than the carriers. The advance,
however, has been orderly, and the
public has not taken up speculation
on the large scale. Stocks are in
strong hands. There can be no
doubt that the outlook for business
generally is bright. and 1t is reason
able to assume. therefore. that event
ually the stock market will work to-
ward q higher level. 1t must also
be borne in mind, however, that the
advance that has taken place Of late
has been a material one, and, natur-
ally, the technical position of the
market has to a certain extent been
weakened. From this, II should not
be inferred that liquidation on q
large scale is imminent. although
occasional setbacks must be looked
| fo~ a,,a 80 raaMzin1 salaa