Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-08-13
FINANCIAL DIGEST
= THE WEEK i'm BUSINESS =
By The Tribune.
6y STEWART p. WEST
eecjal Cosrespondeat Of Great Falls trtbuas
nrrrdrhf 1922 by The Great FAlls Trtbune

Copyright, 1922. by The Great Falls Tribune
New York, Aug. 12.-This weeks
events have witnessed the truth OF
the adase that stocks are no argument
on which to sell securities. We never
have had in recent years, such wide
spread railroad tie up such as that
threatened by the policy of the four
big br~otherhOods in connection with
the shipments walkout. But we have
had vast stoppage Of the country.'s
productive forces through strikes IN
The steel, coal and textile industries,
and vet in no instance has there been
A record of these disturbances causing
serious liquidation in Wall street.
The truth is that usually labor strug-
giles of such magnitude do not last
long enough to occasion important ioss
even in the industries most directly
concerned. Such losses as do occur
are so purely a temporary matter that
they cannot affect long range caicuia-
tons Of security values. The threat
Of q general paralysis of transporta-
tion facilities is on it's face extremely
alarming. but it is u~nthinkable that,
should such a crisis occur, 1t could pos,
sibly last long enough to do any vital
injury. The whole power of the gov
crnnent realizing that the life of the
nation was at stake, would be brought
into play to keep the railroads run
ming.
Consequently the investment com
munity has refused to grow excited
over the strike news no matter how
bad it has seemed on the surface. The
figures on carloadings since the first
Of July, when the rail strike began,
have persistently failed to reveal any
harm except to shipments Of coal.
We're the coal strike over the railroads
would be confronted with an enormous
traffic. Instead of worrying about
labor troubles and their effect, the
business of the country would have a
more serious problem on its hands IN
the shape Of q freight congestion rival
ing that in the war just before the
government took owe control. This
danger has all along been foreseen.
The improvement in the investment
market has enabled the roads to sell
their new securities and raise funds
for property extensions, for larger
terminals. for more cars and engines.
But these expenditures, coming after
years of compulsory s%kimping. have
been far from keeping pace with actual
needs.
The test will come with the coal
strike over and with the autumn move
ment of the new crops to market in
full swing. The prediction Of an un-
parallel traffic volume when these
things happen is well founded. That
it will involve inconvenience and loss
to shippers, is by no means certain.
But that it will mean much for the
earnings of the roads and for the rail
way supply companies is apparent and
it is the anticipation Of a situation of
this sort that accounts for the remark
able strength in those groups of Sc
c~urities all through the recent mar
ket.
Foreign Situation Distressing
Uncertainty with regard to the con
ference OF premiers at London. wheth-
er it would be any more successful
han its predecessors at Genoa and
The Hague in settling German repara- |
tons and the problem Of the inter-al-
lied debts, had a depressing effect dur
ing the greater part of the week upon
the foreign exchanges. German marks
went to a new record low and the
French, Belgian and Italian currency
all got down close to the years bot
tom.
Sterling was an interesting exception,
but an exception readily enough in
t~elligible. British finances do not,
like those of the rest of western Eu- !
rope. need German indemnity money to
bolster them up The latest figures
on government income and outgo are
most striking. During the month of
July the total revenue Of the British
reached Il, 100000 pounds as against
II. 800. 900 pounds expended. making
net receipts of over 29.OOO,O00 pounds.
This result, brought in in the face
Of last April's reduction in the income
tax. is a measure of great Britain's
returning trade prosperity. It makes
clear the willingness of the London
government to take up the question
Of war debt and start sending gold over
here to meet interest payments. 1t
throws ample light on the strength in
sterling exchange through the crisis
of Continental Europe. and at the sea
son Of the year. too. when offerings of
commercial bills, against European
purchases of our new grain and cotton