The Washington times., 1922-07-16
Weekly Financial Reuiew
BY HENRY cLEWS,
of Henry Clews & Co., New York Bankers.

NEW YORK. July 15.-Reahza-
,ion of the actual conditions In
Germany has unavoidably led to
new and severe depreciation OF the
mark, which has reached low Level
not far from .1Sc. though recover
ing later. This situation. with its
reflex effect upon other currencies.
has naturally tended to impair con-
fidence in continental securities. al
though on the whole, they have
held their own we'll. One result OF
the hesitation regarding foreign In
yestments, coupled with bankers
curtailment OF short-term credits,
has been to shift the current OF de-
mand more strongly than ever to-
ward domestic securities. whicn
have been we'll maintained In price,
Notwithstanding some obvious o't'
The Railroad Strike.
Although on the surface. the rail-
road strike has been somewhat ag-
gravated during the past few days,
the indications Of eventful collapse
are unmistakable. and the market
clearly appreciates the fact. A
strong attitude on the part Of the
Administration foreshadows the ul-
timate enforcement Of the ideas
and rulings Of the labor board. and
indicates that, with the wage Is
sue definitely disposed Of. condi-
tions will be better and clearer In
the railroad industry than for some
years past. Associated with the
settlement Of the railway strike Is
the plan now proposed for finally
ending the coal controversy. So
obviously has the sympathy CT the
public been against the demands
Of the miners, that they can GER
tainly not continue indefinitely to
oppose the general sentiment OF
the community with any real hope
Of success. Adjustment of these
two strikes will place all business
in condition Of far greater
strength than 1t has enjoyed at any
time for a great while past. The
continued development Of good rail-
way earnings, and Of excellent car
loading reports, shows how firm is
the real basis of railroad pros
perity. Next months reports may
show the effect Of the disturbance
caused by strike efforts, but thus
far they do not count for much In
the statistical returns. Progress In
the consolidation of roads Is again
Illustrated by the application Of the
Nickel.Plate interests to the Com
merce Commission for permission
to merge with the Lake Erie and
Western. The consolidation move
ment undoubtedly promises impor-
tant changes in securities, which
are always inclined to move up
ward under the influence Of ANAL
carnations.
The Growth OF Business.
Another increase in untitled orders
announced by the Steel Corporation,
this time amounting to over ISL 900
tons, has beer accompanied by a
decrease Of about 1900 tons in the
June output Of ingot steel. The lat.
ter, however, Is not only the first
decline this year, but a very small
percentage of present production,
which, In June, amounted to 2,83h.-
900 tons for thirty reporting com.
psnies. The expected shortage Of
coal goes with the moderate decline
Of ingot steel; and the situation sug.
gests that some OF the steel plants
are beginning tocfeel strike effects.
General productive prospects, how.
ever, continue good. The Harvard
Bureau Of Economic Research re-
ports that business 'is now we'll ad.
vanced In the phase of the economic
cycle known as recovery" and pre.
diets that "the recovery now in prog.
gress will develop into general bust.
ness prosperity" This Is a forecast
which In amply sustained by the
steadily increasing demand, and the
larger output, as well as by better
prices in many staple lines. Copper