The Washington times., 1922-10-22

credit Is rightly. noted by Mr..
mower ana others an good evidence
OF the stronger position in which
Ihe Government has placed itself
curing the past year or more. The
puuget system Is now working salts.
iactorily, and IL credited with a re-.
duction OF $3.50, 200, 900 due to ex.
ecutive savings resulting from bet.
YER management Of appropriations
All these facts have a very real
relation TO business and to stock
market values. They suggest that
IL may be possible to overcome the
announced deficit OF $3.50, 900 900 ex.
pected for the current fiscal wear
without resort to heavier taxatior
aIthoush, Of course, there AZ stiIi
considerable amount of discus.
sion or possibilities looking in the
latter direction. and an apparent
prospect OF new legislation.
The Money Situation.
During the past week the Govern.
ment and private disbursement 9
necessitated by interest payments
or the middle of October were effecI.
ed and with good results upon the
generai money situation. Federal re-
serve banks are still feeling the IN.
crease OF crop moving demand. bills
held cont nuing this week at s7es..
QUO 900, n decrease Of only $4,000. .OOO.
This figure, however, is small Az
compared with a year ago, when IL
Is remembered that last year there
was large inter-district portfolio
running over $500. .000. 900 for the
season, and representing the
amounts that Southern and Western
reserve banks have had to 'borrov
from Eastern and Northern institu.
tons In order to accommodate their
customers. This year the Federal
reserve board announces that no
such borrowing Ii to be expected, a
fact which in Itself illustrates the
immense change In conditions as
compared with year ago. While II
10 true that demand for money win
continue fairly steadily. due to in.
terest payments. final income tax
disbursements and end of the year
requirements. there Is an abunda 1t
lending power. The reserve bank.
have been further strengthened dur.
ing the rast week bv the finsl nav.
ment Of the proposed instailment q,
The Brit sh interest PAYMENTS which
although already largely on hand In
the form Of cash. are now released
to the Government. This has had
n strong tendency to improve the
quotation of sterling exchange
There Is no reason 10 doubt the pres.
ence OF ample ability to meet sny
reasonable demand for funds for use
In anv kind of legitimate investment
operation.
Market Review and Outlook.
Inspired by the announcement OF
huge stock dividends by Standard
OIL >and other companies carrying
large surpluses, the market has dis.
nlayed great activity during the ma
week. although It has been generally
recognized that q large norton Of the
daily trading on the exchange simply
represents quick in-and-out transac.
.inns. which carry with them no par.
ticular significance except that tho
"spotty" condition has shown that
traders are by no means all Of one
mind. As for the public, the fort,
night lust ended has seen q very con.
siderable reduction in the amour,
that Is being carried, with CORE.
sponding lessening in the floating
supply of stocks and better tone as
the result Of It. II 10 known that the
large financial interests are viewing
the future with q feeling Of optimism,
believing that the general run of
stocks one Of these days win be en-.
titled to sell at a higher level based
on merit: but with the increased de.
mand for money for trade and crop
moving purposes believe II n better
At present to mark time rather thar,
"a incroaaa the afrain ON thu hanhs