Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-22
Steady Improvement
Shown During Week
in All Businesses
BY THE WELLs.DIckEY co.

BY the WELLS.DICkEY co.
The business trend during the past
week showed little change from that of
several weeks previous. This does not
mean necessarily that the Improvement
b conditions has been uniform, but sim-
ply that major activities show that con
ttructive results are aceruing, Furth-
krmore there Is little in sight which
promises to change the present situa-
Ron. With the clearing up temporarily
kt least Of the Turkish difficulties there
has been one cloud removed from the
horizon that for a month or SO has been
distinctly disturbing factor. Every
hdication points to a continual improve
nent in business during the e few
months.
To be sure, we are facing a car short
age ct present, a shortage which to a
tertain extent at least was first brought
about by the railway strike but which
IN its present aspects is due perhaps
just as much to increased business ac-
tivity as to the slowing down of trans
kortation several months aso. The con-
ditions arising out Of the strike are be-
ing rapidly remedied and there should
pc no fear on the part of businessmen
that the railway situation will be much
of a retarding factor in the future. Re-
ports do come from some quarters, how
ever, that just at present certain lines
OF manufacture nave found it necessary
20 curtail their operations because of
their inability to get freight accommo-
Y cations for the long haul Of their fin
Y tshed products.
Bond Sale Healthy Sign.
Probably the outstanding develop
ment OF the week was-the new offering
OF about $500.0O0, GOO of United States
Treasury Az per cent bonds put out by
the United States government as part
OF It's carefully planned refunding pro-
gram. d bonds were well received in
hl quarters and reports from the feder-
a reserve banks and other sources in
dictate that a large percentage of the
holders OF the Victory 4& securities
are converting these obligations into
che new longtime investments, The
heavy oversubseribing of the issue in
every quarter of the country indicates
p healthy situation, and while having a
temporary depressing affect upon the
prices of outstanding Liberty bond is
sues. the market effect in the long run
VIII perhaps be to improve these eondi-
lions over what they were before the
eefundlng operations were undertaken.
The fact that the present bond issue
was put out on a long-term basis makes
them particularly attractive to ~institu-
tons and corporations. 1t is not gen
erally understood perhaps that these
bonds do enjoy special tax exempt fea-
lures which make them particularly
attractive for corporate Investment.
FOR one thing, they are exempt from
all normal taxes, and since the excess
profits tax has been repealed they are
not subject to any further taxes in this
respect.
An interesting development in the
international situation has been the
recent receipt through ]. p. Morgan
q Company, fiscal agents for Great
Britain In the United States, of a
S5O,OOO,OOO check on the British trea-
sury as an installment toward liquidat-
Ing her war indebtedness to the United
states. IL was announced several
months ago that Great Britain was
preparing to do just this thing, but at
that time there was much uncertainty
) IN the matter because of the pend
ing negotiations aimed toward inter-
= allied cancellations.
Clearing Houses Show Gala
While the American Bankers asso-
cation last week went on record as
In favor of reciprocal cancellations
wherever possible, it is thought that
no such events will ever come to pass,
especially since the example set by
Great Britain in making this first sub
stantlal remittance. Of course, the
other nations are not so favorably
situated as is Great Britain and are
not in position to undertake any liuui-
dation of their indebtedness at this
time. This does not mean, however,
that their obligations will not eventual
ly be paid.
Tbora bayn honn ~
from some quarters that the govern
ment at Washington is looking with
disfavor upon foreign loans when un-
dertaken by private capital. Her az
t1tude up to this time has not been
such as to cause any diminution in
the flow of American capital into
foreign channels where this flow is
not being turned into militaristic
channels. There will be no frown cast
upon loans conceived in a spirit of
humanitarianism for the relief of
stricken countries. thereby enabling
them to get back on their feet
Several factors combine to show
the position in which business in this
country is finding itself, for instance,
the returns from the clearing houses
for the month of September show an
increase in clearings of about 20 per
cent over what they were the same
month a year ago. The September
figures also are about3 per cent great
er than those for the month previ-
GUS. Member banks of the federal
reserve system report an increase of
about $4,000, 900 in COMMERCIAL
Z loans during the month of September,
an increase which is to be expected
as a natural result of increased in
LONG AND SHORT TERM BIC
(By WeIIs-Dic