Evening star., 1922-08-27
BY I. A. FLEMING.

might readily have been pardoned for
looking upon the action on Wall
(strcet the last sixty days as contrary
to the dictates of good judgment.
Common sense and ordinary bright
ness.
We have had two vicious strikes.
developing into finish fights accord
ing to all appearances. although one
can never tell just what minute the
unacceptable of today will become
the acceptable of tomorrow.
Y We have witnessed Germany paying
the price and an awful one. with her
once 90 l.-cent marks down to little
loss than one-half of the American
mill 1-2o of cent. where the cur
rency of the once great German ma
tion is selling on the basis of about
twenty marks to the cent and about
1000 marks to the dollar.
y rupture of relations between
Great Britain and France over the
10 be a possibility. through failure of
conferences to reach any agreement
or German reparation matters.
The more or less absolute depend
ence of France on the war indemnity
or reparation payments from Ger
many makes the collapse of the for
ner central empire all the more seri-
GUS for the French and in way its
effects are felt in all countres-a
measure of interdependence being
inevitable.
No one knows just where smold
ering trouble may break out. Gov
Crnment intervention in the hard coal
strike. even in the railroad business
as a result of the smashed but not
.(heaten shopmens strike. might bring
: serious turn.
Just ahead and not very far away
IS the Specter of the soldiers bonus
hill with indications of action. pos
Sibly a vote sufficient to overcome
the nreUirTal veto DrOmISet II some
measure to raise the CASH is not Of
fered at the same time the banus
bill is voted.
4 Financiers claim that the bonus
measure must increase taxes and any
increase in taxes is dreaded as an
unfavorable influence.
Facts, Not Fiction.
These are facts as they have exist
I'd for some time. but in the face OF
happenings and conditions that would
ordinarily make speculator and
conservative investor cautions the
hull market of the last twelve months
has not lost its stride to anv per-
ceptible extent
True. there have been ne:iods of
hesitation. an apparent turn in the
tide. but il has not gone far. the up
swing being resumed again if 'he
near future
The prosperity of this nation; the
great small grain crops safely gar
NFIeu III part anu more iIdH dll
else. the great abundance of money
Of its own ease and weight have
turned the scale and maintained the
uptrend in values.
With plenty of money and assur
ance that some day the labor troubles
will be ended the bulls have worked
on the market and kept it gradually
seeking higher levels.
PuzzIins Movement.
When the United States Steel Cor
poration announced 30 per cent IN
&crease in wages. coming so soon after
the Unemployment scare had been put
under il was surprise to the en-
tire community.
1t was taken by some to mean that
the REIMBURSEMENT of labor costs had
come to the halting point: that fur
'her reduction with the greatest of
all employers except Uncle Sam ad-
= vancing wages was out of the ques-
titon.
By others it was read to be no.
tlce to the coal baronS and railway
men to settle their strike us soon as
possible and get out of the way of the
Improvement in the great American
industrial trade, and by some few as
meaning that wage labor was ac-
tually scarce and that the immigra
doors to good common labor while
the educaetd and semi educated
crazy-in- the hea dS-and- hearts make
up much of the quotas.
Bonds and stocks Advance.
But the investment and speculative
markets have demonstrated in a re-
nlarkable way their Indifference to
everything. They have taken up the
rail shares on increased earnings and
the outlook for big business result !
ing from the bumper crops; they have
boosted equipments because the rail-
way companies will require new
equipment. and they have advanced
steels and metals generally on the
reported gains in business and price !
advances that are likely to follow |
wage increases.
One may look at the table of the |
Exchange and see for themselves the |
net rise for the year to date and !
add to this the gains made dis !
counting better business in the clos |
story. of large advances and great |
Profits in everything except a few |
specialties that are sagging.
tan the United States Go Alones
The real question to be answered !
by students of market conditions |
would seem to be just this, Can the |
United States go it aloneo
can business keep up-stocks ad |
vance. bonds rise, employment be on |
high average. Industrial produc- |
ton near normal-and the markets !
and credit of the rest of the world !
go just the opposite way? If the /
reader is in position to answer this !
question to his own satisfaction he |
would seem to be in a position to /
reap the advantage.
Following the end of the war a !
veritable flood of bonds were sold by |
France and French cities. by Bel :.
gium, by Great Britain and also by |
many South American nations
Many of these bonds are today 10 |
points-S100 a bond-below f1otation !
price. and still soft.
And with every drop in the cur !,
rencies of the foreign countries the |
big bond issues go still lower. Look |
the foreign bonds and note the !
humber of bonds and the daily sales |
May Keep 1t UP.
n II just possible that the bull |
market may continue in the face of |
adverse happenings. Wall street
goes by contraries. 1t has habit |
of discounting favorable news and |
1t would surprise no one to witness |,
q sharp reaction on settlement of the |
strikes, when that desirable realiza- !
, ton Is reached. |
Money has not stiffened a bit; in
vestors' have not filled their orders !
This advance in which the general |
continue into the early fall months, !
hut even a bull will admit that con-
ditions are sufficient to warrant a |
reaction, even though a general drop
is delayed many days.
Scores of traders are hoping fec
TIE reaction. that they may get in |
again on the buying side, and many |
viii continue to hold off for most J
natural reaction.
One of the chief arguments of the |