, 1922-06-06
General Business
Conditions

The general business situatieR has
continued favorable from month to
month until confidence is now well
established tina the worst Of the in.
evitable postwar depression is over.
Tho recovery reflects the great recu'
perative powers which this country
has within itself, but has been aided
by a similar demonstration in other
countries. Despite the seemingly al
most insoiubie problems arising from
the war. and all the political contro-
versies. racial a-ntagonisms and half
baked social and economic theories
that contribute to the confusion, the
world has a tendency to a state of
order. Prosperity is the fruit OF a
state Of ordered. balanced and recip'
rocal industry. in which everybody
works at rendering some service TO
others nj geta his pay in the services
which they render to him. Although
an appalling ignorance OF mutual in
terests is constantly displayed. never
theless people are bound to strive I'M
ceasingly to improve their relations
with each other.
The most potent general factor in
the revival of trade has been h ex
haustion of stocks. the wearing out
of things in use. bringing consumers
to the necessity of coming into the
markets to supply their W wants
and Of selling what they might have
to provide the mea Of purchase.
The pressure OF reciprocal wants
gradually brings all branches OF in
dustry to the readjustments that have
to be made.
In the case of foodstuffs and the
leading raw materials of industry
there are no large supplies being car
ried over, unless we except corn.
which does not enter readily into con-
sumption untfl it has been converted
into meat. The grains chiefly used
for bread are closely used up. the
world depending upon full crops each
year. In the chief materials of cloth
ing, wool and cotton, the carry-over
which has existed since the war has
been reduced in an important degree
during the past a These condi-
tons give an assurance OF a degree
of stability in the principal agricul-
tural staples which has lot been felt
since the fall OF 1920.
The state OF ease that has developed
in the money market, as evidenced by
the liquidation of the federal reserve
hanks, the ready absorption of invest
ment securities and the rise OF the
bond and stock markets, is a condi-
ton favorable to business expansion.
It does not follow, however, because
a substantial revival from the ex-
treme state of depression has taken
place. that we shall have uninter-
rupted or rapid recovery to full activ-
ity in all lines. A readjustment Of
industrial relations is under way and
has produced the Improvement in
sight, but complete readjustment has
not been accomplished, either in our
International or our domestic rela-
tons.
Foreign trade IS better. The South
American countries which produce
raw materials and foodstuffs are find.
ing better markets. working Off the
surplus stocks of merchandise which
have embarrassed them and begin
ming TO buy again in substantial
amounts. Conditions in Asia re i'm
proving. the price OF silver, about 70
cents is 10 cents or more above the
point. and is helpful to trade with
The foreign exchanges are
stronger, which means a more favor.
able condition for foreign buyers in
ibis MARKET