Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-09-10
Favorable Conditions
in Business Circles
Appear Most Enduring
By WELLS-DICKEY

factors are temporary in character,
while the favorable signs are nearly
all of a more permanent nature. with
the impetus of such steady advances as
have been made in business since the
first of the year. industry generally
can swing into the fall months with
fair assurance that the showing for the
year as a whole will be extremely sat
isfactory.
The favorable factors may be sum
med up as follows: Prospects for a
bumper" crop, the near exhaustion OF
present supplies of raw materials n
manufactured goods, indications of in
creased buying power. easy money,
lessened unemployment. and a post
ponement of the crisis In international
affairs by the granting of a mora
forum to Germany for at least six
months.
The unfavorable factors are these:
The coal and railway shipments strikes
and their devious ramifications, the
bewilderment of business generally as
an outgrowth of the unsettled situation
in transportation, the passage of the
Soldiers Bonus bill, and the continued
agitation for compensation from those
who served during the World War.
Favorable Factors in Lead
Balancing the favorable against the
unfavorable factors. it is reasonable to
suppose that the favorable signs will
be of more permanent consequence than
the unsettling ones, most of which
fortunately permit of a fairly early
settlement. AS a single illustration, the
settlement of the strikes at this time
would wipe way entirely one of the
great retarding factors of the moment.
A settlement of the Soldiers Bonus
agitation likewise would make way for
early progress.
The pinch of a coal shortage con
lines of industry requiring a supply of
anthracite. Fortunately the soft coal
regions are now operating near capa-
city and are developing reserves which
may carry us through the winter with
out serious hardship. The strike Is
having one decidedly beneficial affect
in stimulating economy in coal con
sumption. No doubt there is a tremend-
Gus waste in this field which could be
eliminated with profit. The strike of
the rail workers is not progressing at
all satisfactorily from the standpoint
Of the strikers. Many railroad shops
have already succeeded in bringing back
their labor forces to around 20 per cent
of normal and report that even with a
large percentage of unskilled workers
they have been able already to bring
shop production TO a higher PERCENTAGE
of normal than that. The railroad strike
seems to be somewhat of a hangover
from the McAdoO administration when
| the railway labor market was saturated
with highly paid workers. Now we
have come to the point of liquidation in
labor, an event seemed to indicate that
| the railways can cut down the num-
lber of workers without seriously affect
ing output.
The Bond Market
The bond market during the week
lust past was subject to a series OF
divergent vents. ell of which were
strong enough to affect market quota
tions. The general market as a re
suit was fairly irregular The under
tone. however. was undoubtedly strong
a fact which was reflected in slight
advances among the higher grade, more
conservative issues. But the sudden
changes in the German moratorium sit
%uation, with violent fluctuations in
foreign exchange. the avowed opposi-
ton to the steel merger by the Federal
Trade Commission. the passage of the
Soldiers Bonus Bill. and the propose
of Mayor Hylan of New York for q
new 5000. 0O0. 900 subway. were all fac
tors of sufficient Importance TO make
their influence felt. New issues were
again very scarce. due no doubt to the
continued easing in the money market
as well as to the fact that a great
many corporations have practically
completed their new financing plans fol
the present. It is expected that with @
return Of activity in the fall business
there will be a considerable volume oi
new offerings. Those that cane GU
during the week were reported as be.
ing well received.
Municipal Market Quiet
The municipal market was agar
very quiet. although the demand fol
bonds was heavy. The prices Of sew
eral issues were marked up again from
their original offering prices. The com
petition for new issues among bono
houses is keen and purchases are be
ing made in the present market. which
must mean that new offerings vii
have TO be made Mt lower interes
bases than prevail at present if tn
bond houses are to make a profit oil
their deals. There seems to be n,
lack of confidence. however. in a flu
ture upward trend of municipal prices
| i NO market IOT ThlINHN securities o
all kinds and particularly Of the low
err grade issues. received a serious set
back upon announcement Of the Chi
cago and Alton receivership. It wa
generally known that this road was i
a poor position and that its earning
were inadequate to meet requirement.
but it was generally expected that tn
= creditors would allow considerable
/ more time for recovery before pressin
r their claims. Low grade rail bonds o
4 all classes suffered an appreciate set
: back, some issues declining as much a
, five or six points. The last few day
Z of th week. however, showed a re
I sumption of confidence as r~eflecte
: in improved market prices.
0 The present era of low interest rate
4 has led TO wholesale redemption c
: bonds issued some time ago when il
terest rates were at their height. Man
: : corporations are finding it more ecc
: nomical to refinance on the lowe
v basis possible at present, ever after il
I Guiding the substantial premiums whic
g many of them nave 70 pay in order {
have their bonds redeemed. The pre-
sent situation is one which investor
= can study with profit. Many bono
with prospects of early redemption al
: now selling at the market at consider
z ably more than redemption prices Kee
< investors are Analysing their holdins
: carefully and are making re-adjus
ments of their holdings where sue
seem desirable. The advice of an o,