The Washington times., 1922-05-08
FINANCE
AND
BUSINESS.
BY b. C. FORBES.

Before recording the unusually
large number of encouraging de
velopments during last week, let us
note the progress made towards re-
establishing international financial
equilibrium.
Since January ]. America has
raised almost $500 900 900 for for.
eign borrowers, and as President
Harding has just commended such
financing by our banking interests,
this movement IL likely 10 broaden.
especially as our bank reserves are
quite unnecessarily high and the
rates now charged borrowers are
not unreasonable.
Most OF the principal foreign ex-
changes have been making at least
some headway towards recovery.
Sterling, the most important of
them all, has reached the highest
point since the middle OF 1919. At
s445, the advance from the lowest
point H3.l8 equals almost 40 per
cent. The British chancellor OF the
exchequer intimates that sterling is
on it's way back TO prewar quota.
tions. Francs advanced last week
and are also substantially above
year ago Italian lire improved
during the week and also compare
faVorably with a year ago. The
same applies to the currency OF
Denmark. Holland, Norway. Spain.
Sweden. Switzerland. India, Japan,
Argentina. Brazil, Uruguay and
ca nada-alI are above the level OF
twelve months ago.
This week Americas foremost in
terna tional banker sails TO join a
subcommittee OF the Ecpara tionS
Commission formed to consider the
formulating OF a huge foreign Joan
for Germany. and the indications are
that this helpful proposal will have
the approval OF the Governmental
and fina ncial interests of his COun-
try, Britain. France, etc. The flota
ton OF such loan should do as
much az all the talk at Genoa 10
hasten the restoration Of stability
| in Europe.
All these are matters OF genuine
moment to American business and
American labor, for they tend TO IA
cilitate overseas pure ha sing OF Amer.
ican commodities and American mer.
chandise. And. after all. wn will
| not have full.flood prosperity At
home IL we are not able 10 sell our
surplus products abroad.
While Improvement in this coun.
try is still irregular. still spotty. still
unspectacular. the trend is forward
and upward. without any question.
Indeed. favorable happenings have
| lately been so numerous that II
would be impossible to discuss them
all within the limits OF this article.
Let us, however. mention a few.
Discount rates once again declined
| during the week call money closed
the week at 81 per cent. the Ite'
serve Banks detailed statement re-
vealed debt liquidat ton where such
| liquidation was most needed and
while the ratio OF reserve declined
| during the week. IL is almost so per
| cent above a year ago. Strong bust.
ness concerns are being importuned
by city banks to borrow some OF the
funds lying idle in bank vaults.
The absorption OF new securities
continues so keen that almost every
attractive offering is. snapped up
the day it Is made. over $12O, 900,
900 was raised last week. The pro,
viding OF such enormous amounts OF
capital means increased enterprise
and increased employment in com
ing months.
Unemployment returns are graft
flying. Agriculture and other basic
industries are employing many more
workers. and in some lines Help
Wanted" signs are again a feature
The automobile industry alone has
taken on probably $4,000 additional
workers in the last two months.
| The Government reports favorable
crop weather in most sections. al
though floods have done considerable
damage in Mississippi valley. Spo;
cotton has again touched 20 cents in
New York for the first time since
last Fall. Wheat, corn, hogs. end
sheep are also at prices reasonably
satisfactory TO growers. So that. on
the whole, the agricultural outlook
is far from discouraging.