The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-11
FINANCIAL NEWS
AND COMMENT
Broader Stock Markets i'm Re-
Spouse to Better Views of
Business Future.
MANY NEW HIGH LEVELS
Prices Influenced by Prospects
of Big Crops and Complete
Industrial Peace.
MANY NEW HIGH LEVELS


road strike was not officially ended.
but shopmen drfted back to work In
large numbers. and it was believed
likely that the ratification of a peace
pact would be announced before many
days.
prospects for a speedy return to in
dustrial stability in all lines were
brighter last week than they have been
for some time past. General trade con-
ditions were better and reports indi-
Gated that the basic industries which
had been forced to slow down because
of the strikes were starting up again
The production of pig iron, which Is
taken as a trade barometer, continued
depend on 1t were said to be placing
substantial orders. Improvement in
transportation conditions appeared 10
be rapidly taking place and railroad
officials predicted that normal condi-
ton would prevail in a few weeks.
Good Progress Despite Strikes.
nents of the strike period has been
the stability prevailing in business
showing that strikes do not alter
fundamental conditions. Monthly sta
tistics published by the commercial
agencies have shown a steady decrease
in business failures despite curtailed
industrial activities.
With most of the recent bad news
behind 1t the stock market became
broader and displayed great underlying
strength last week. Both the railroad
and industrial groups continued to score
advances into new high ground. The
increased prices for common stocks
which represent earning power was a
further proof of the existence of implicit
confidence that the uncertainties of the
summer will give way to a good fall
business.
Because of the protracted duration OF
the strike stocks of merchandise In many
lines have been allowed to run fairly
low and the replenishment of these sup
plies should mean a fairly well balanced
state of industry.
All the principal crops are larger in
bulk than last year. The report made
public by the Department OF Agriculture
last week promised a bumper wheat
crop. A large part of this crop probably
will be exported, for in the absence of
Russian grain Western Europe is largely
dependent on this country for food. No
matter what the attitude of the principal
countries in Europe may be toward the
importation of luxuries some way will
have to be found for purchasing food.
Roads Face Big Tasks.
An important question is whether the
carriers OF this country Will be equal
TO the task before them OF Transporting
the delayed shipments of coal. the ire
mendous increase in freight resulting
from the speeding up Of factories all
over the country and in addition tbs
large crops this year. The burden on
the roads probably will be greater than
at any time during the war and 1t will
be rendered heavier shortly by the sea-
sonal closing OF the shipping route
through the Great Lakes.
Moreover the railroads are threatened
with this extraordinarily heavy business
at a time when their rolling stock has
suffered considerable depreciation as a
result of the strike All locomotives and
90 rs buya haa, p,,ebad 20 ,bair ,,t,,,as,
and many necessary repairs have been
neglected. Indeed, It Is quite likely that
a large portion of the rolling stock
which has been operated in recent
weeks without proper rest will have to
be replaced.
Money conditions continued favorable
last week and Wall Street was able to
obtain all the money it required at low
rates despite the crop moving period.
The statement of the Federal Reserve
system showed no indication that the
reserve banks are being called on
TO finance autumn developments this
year. Private banks appear to be abund-
antly supplied with their own credit
facilities and they have shown no dispo-
sition TO call loans freely. They have
been placed In that favorable position
by the liquidation Of old frozen obliga-
tons
Trade Outlook Abroad.
Economic conditions in Europe seem
to be on the mend and industries over
there are apparently becoming more
productive. One of the chief stumbling
blocks in the way OF financial reorgan-
ization In Europe is continued currency
initiation such as that revealed in the
German bank statement last week.
The political situation abroad was
further complicated last week by tho
complete breakdown of the Greek army
before the advance OF the victorious
Turks The latter development was
largely responsible for the lack Of re-
Spouse shown IN the foreign exchange
market to the better reparations situa-
tion.
The decline in cotton was checked,
giving way 10 a moderate advance in
prices In the investment market there
was little more activity but new Of
ferings Of securities continued compare.
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