Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-09-10
BY STUART p. WEST

spssIai Correspondent Of Great Falls Tribune
Copyright. 1922. BY The Great Fails Tribune
New York, Sept. 9.-The weeks de-
velopments affecting the financial mar
kets have been altogether favorable.
Domestic labor troubles, with the set
Element of the coal strike, have ceased
to be a subject of discussion. The
railway shipments strike may be settled
piecemeal in the near future or 1t may
not. The essential thing is that the
men are flocking back to work, that car
loading as shown in the official figures
continues to increase and that on most
lines the contest is practically over.
Assurance of an adequate fuel sup
ply has had its effect upon industrial
operations. The steel mills, which were
down below so per cent of capacity,
are already back close 20 go per cent
with every sign that production will
continue to expand until Il reaches the
IS per cent maximum of three months
ago.
What is true of steel is true of
manufacturing and producing activities
in general. Where output was cur
tailed by coal shortage complete re-
coyery is promised.
Backing for German Program.
Turning to the European situation,
il is too early, perhaps, to appraise
the Importance of the latest efforts
to solve the indemnity problem. The
proposal that Germany furnish the de-
vastated regions of France with re-
construction materials and deduct these
from the reparations claims is nothing
new. But il has for the first time been
put in definite form. with the backing
of the most powerful German industrial
interests.
For the first time, too, the plan
seems to have the approval of France.
The second proposition bearing upon
the indemnity question put forward
during the week represents a distinct
innovation. 1t is that the big business
men Of Germany provide jointly with
the reichsbank on the one hand, and
with English bankers on the other,
the security back of the notes which
Belgium has agreed to take in lieu of
her cash payments for the rest Of the
year.
New Plans Are Logical.
These two offers have not been for
mally accepted; therefore, too much
store must not be set upon them. But
unquestionably they do denote encour-
sgine suggestions that have yet been
made to settle the vexed question of
German reparations without withhold
ing from the allies a capital sum which
they soreIy need and yet without
pressing Germany so hard as to COM
pei reputation.
Opens Way for New Loan
If reparations requirements are
disposed of in this manner, that is.
through the cooperation of private
capital with the Berlin government
then the way may be opened for an
other international bankers confer
ence and the flotation of a German
loan. Even then the question will be
asked whether Germany can find
enough acceptable collateral for the
bankers of the world to secure the
issue adequately. But without a Tor,
eign loan, balancing of the budget Will
be extremely difficult, even with the
relief afforded by the substitution or
materials for cash as the medium OF
indemnity payments.
Germany is farther away than ever
from striking a balance between gov
eminent outgo and income. This is
clear from the latest reichbank state
ment. with its unparalleled increase in
a single week of over 26,00O.0O in
paper marks. The extraordinarily
rand prograss Of German initiation is
indicated by the fact that note cur
rency expanded 100000 marks in
August as against half that much in
July and S19,O00,000 in June. The
August increase alone was as much as
the entire increase for the first five
months of 1922.
France Adds to Paper Currency
The French bank, too, has been
forced to add heavily to its paper cur
rency. The total has jumped nearly
n billion francs within the last fort
night. Under these circumstances, the
present fluctuations of the paper
francs. no more than of the paper
mark. can be regarded as an accurate
trend of the money market. Further
rspid dilution Of the paper ~currencles
explains readily enough why the en-
~couraging news Of the week has not
been reflected more than 1t has been
in exchange rates.
Growers Selling Cotton futures
The census bureau figures on cotton
ginning showed that up to September
I. S17171 bales had come into slght.
This is an unusually large total, the
largest, with one exception, in recent
years. The high percentage OF avail