Evening star., 1922-04-01
BANKS ECONOMIST
SEESBETTERMENT
National City Expert Finds
'''Marked Improvement" in
Fundamental Conditions.

Tho general feeling in business cir
cles is one Of strengthening conf
dence that the corner has been turned
and that 1922 will be a better year
than 1921. Tho improvement in fun
damental conditions and in general
feeling since tho first of the year has
been very marked; indeed, from the
middle of January to the first Of
March optimism was perhaps over
pronounced, and a moderate reaction
in some lines has naturally resulted.
The stock market, which is prompt
to reflect and even anticipate changes
creeping upward for tho last six
months in a slow but persistent move
ment, which suggests faith that bet
ter days are coming.
Rail TraAe Better.
Railroad trafac. as indicated by the
reports of car loadings since the first
Of the year, have been running ahead
Of last year, although January gross
earnings were about Is per cent be
low those Of the same month Of 1921.
On tho other hand, the net earnings
Of 199 roads were $50, ,421, sos lin jan
uary, against $2S,331,956 In January,
1921, which reflects the reduction in
ings are not reflected In increased
revenues until several weeks later.
because freight charges are collected
upon the delivery Of goods. The pro-
gressive gain in 1oadings Is shown by
the increase Of per cent IN Febru-
March, in each case over the corre-
spending months Of last year.
Made ON Short Orders.
Trading in all lines Is on a short
order basis. Foreign buyers wish to
avoid tho risks of exchange fuctua-
tions SO far as possible, and in the
domestic trade there is q prospect
that in some lines. particularly cloth
ing and textiles. prices may be lower.
There is general agreement, however,
that both at home and abroad stocks
have been worked down to the mini
mum and that there must be constant
buying to meet the demands for cur
in which the situation is decidedly
moro favorable than it was in the
latter part Of 1920 and throughout
most of 1921. Sir James Wilson,
we'll known British authority upon
wheat, is quoted as estimating z sur
bushels at the end Of the crop year.
The steel industry has made a
marked recovery, the United States
Steel Corporation now operating at
about 20 per cent of capacity and the
Independent companies in the aggre-
gate at probably 60 per cent. When
It is considered that production ca
pacity has increased about so per
cent since before the war, it will be
seen that this is far from a state Of
stagnation. Prices stiffened in sew
eral lines of steel products, and Judge
Gary, answering an inquiry as to the
policy of the corporation, has stated
that 1t was disposed to follow the
lead of the independents in making
prices.
Average Steel Prices.
The computation of average prices
upon fourteen leading iron and steel
products by the Iron Trade Review
shows a composite for the last week
in March Of 1886. compared with
$3.50 last week, $32.S7 two weeks
ago, $32S6 for all February, $33.45
for January. and $27.93 for March,
1913.
and steel may be due in some degree
to misgivings on the part of tho
public that the steel strike may in
terfere with production, but 1t is in
directly due in part to the extensive
equipment orders that have been
given by the railroads, who have or
dered more cars in the last three
months than in all Of last year. The
implement industry. although still
far from normal. Is much better than
at this time last year. and that is
industry, and even more so with the
building industry. The figures for
the latter are quite remarkable, per-
mits in 161 cities aggregating $1S2,-
909, 600 In February last, against S50,-
433,167 In February, 1871.