The Washington times., 1922-05-07
Weekly Financial Reuiew
BY HENRY CLEWs.
of Henry Clews & Co., New York Bankers.

fected. This prospect has been
well reflected in the values OF rail-
road bonds. which have shown the
attitude OF the market in view OF
the current earnings returns very
clearly.
The business report of the Fed
eral Reserve Board during the past
week has once more confirmed the
belief that non. pa rtisan national
surveys of trade show real i'm
provement, industrially speaking,
and so tend to support the advance
that has taken place in the stock
market. The board not only en-
phasizes the gains In the metal
working and metal mining indus.
tries In general but gives special
attention to the gain that has
taken place in copper. while II
shows that the textile industries,
In spite OF the strikes that have
been prevalent. have maintained
their output well. The only real
cloud on the horizon seen by the
board is apparently the continu.
ance OF labor disputes here and
there. These. however. seem now
in a fair way TO be adjusted. With
the improvement OF general bust
| ness. Ii Is natural that there should
be an Improvement in the demand
for fuel, and this has been reflected
In the better prices for the oils.
Rumors concerning an arrangement
said to have been made by the
Shell interests with the Russian
government, has affected them in a
special way, but the better in.
dustrial demand for oil has been
4 ,,r s.I -.
the price OF the domestic oil stocks
all Of which have been exception.
ally strong in anticipation of an
increase in the price of crude said
to be likely to occur in the near
field.
Money More Abundant Than Ever.
The reasonable rates for money
which have prevailed throughout
I the spring thus far are still main
tained, in spite OF the fact that the
| planting season Is now we'll ad.
vanced. Interior banks have to
some extent depleted their balances
here in order to provide funds for
meeting their own obligations as
these developed. but they have not
! stripped the market in any sense,
as is shown by the fact that a sub.
stantial volume of time funds is
still readily available. There is no
reason to doubt that all legitimate
investment necessities can be fully
| financed from now on, even though
there should be some changes In the
unusually low rates that have pre-.
vailed at times in the recent past.
The prospect that we might cnterl
into arrangements with foreign
countries for the purpose OF aiding
in the readjustment of European
banking systems naturally suggests
some draft upon our resources
especially in the event that we
should either grant large European
credits. as is urged by certain
group of bankers, or make a gold
loan in a considerable amount, as
is recommended by others. The
prospect that such cooperative action
may be taken is proving an important
| factor in stabilizing exchange, fluctu.
ations being less and general levels
higher than for a good while past.
Market Review and Outlook.
In spite Of some reactions during
the week. the general run of stocks
has stood up well, Notwithstanding
profit taking. Pool operators have,
Of course, supported their favorite
issues (finding encouragement in be.
ing able to carry their shares on
easy terms. The public is still evi.
IDENTIFY willing to make purchases
whenever sellers grant concessions.
Nevertheless, important financial
interests are Of the opinion that
II values continue to expand In
every direction without some let.up
| and regardless In some cases OF
merit. the market may get into an
uncomfortable position. That this
In sensed by a great many people
is indicated by the hesitation now
displayed, and doubtless will act
as a brake on excessive speculation
which In never healthy at any time
| From a long-ranee point OF view
fhs outlook continues hopeful