The Washington times., 1922-10-01

the next ten or twelve months. This
Is taken TO mean that, in the alb
sence OF some unusual event, no cX.
ira session Is likely TO be called dur.
ing the coming spring.
Treasury Financing in Sight.
The expectation that. as soon as
Congress had adjourned-assum
ing the defeat OF the bonus bill
there would be important new
Treasury financing. now appears to
be in a fair way TO retaliation. A
large bond issue Estimates varying
as to its amounU is expected with.
in the early future, the proceeds
to be used in taking UP floating in.
debtedness. This will leave the
Treasury free to carry out its Elans
for the retirement of the Victory
notes next December without worry
due to the increase of the deficit
which now seems to be unavoidabl BILE
The plan, although temDorarily
tending to depress values of Liberty
bonds, must in the long run he a
material aid toward stabilizing their
values.
Banking and Money Outlook
Favorable.
The money and banking outlook
for the autumn continues exception.
ally favorable. Time money, after
a moderate advance, has settled
down at reasona.le figures. and
there Is no shC' age of offerings.
Some considerable transfers of
tunds TO the interior are unaVoid-
aple at this season of the year,
especially with so heavy a move
ment OF commodities as is now go
ing forward. The increase in Fed
eral reserve portfolios has been
carried slightly further during the
past week, the total now held
amounting to $65S 900 900, but the
aggregate thus indicated is still
abnormally low for a system which
has on hand the enormous sum Of
s3,076,000,000 in gold. Fluctuations
in exchange have not been due 10
any unfavorable commercial devel.
opment save the decline in exports
which Is naturally to be expected
ment of foreign trade, but ar" the
evidently temporary outgrowth of
the political situation.
Market Review and OutIooIx.
One might expect more determined
market support after the shrinkace
which has taken place in values this
week. II is apparent, however, that
the inside interests who have been
disposing Of their holdings are not
yet ready TO repurChase on a large
scale. The critical political situation
abroad, which may terminate in
hostilites, affords good reason of
course why one should be very con.
servative at the present time. Aside
from this, however, as pointed out
on various occasions in these advices,
on one preteXt or another the bull
movement was carried on to such an
extent that nine stocks out of ten
ceased to be bargains and un.
fortunately the public have been
holding the bag While this week :
decline has reCtified the situa ton 10
some extent il would seem that
liquidation has not yet fully run ita
course and until this becomes evident
nothing more than rallying move.
ments brought about by short cover.
ing can be safely counted upon, as
IL il apparent that a great many
people, whose accounts have been
weakened by the decline. are still
carrying more stocks than they
should TO be on a conservation hasis.
A quick settlement OF the Near
East trouble would lessen the un.
easiness now felt but so far as our
stock market is concerned II will
not regain it's equilibrium until tho
present selling movement subsidies.