Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-02
BRIGHT FINANCIAL
SKIES FOR 1922
Little Short of Phenomenal
Results Obtained in the Re-
construction Program

The year 1927 unuuestionably will gt
down in the annals Of the financial
world as the reconstruction year. The
accomplishments from whatever anglt
they are viewed are littlc shovt 81
/ phenomenal. For out of n condition
| bordering close to chaos there were es-
| tablished order and harmony. The
l curative measures. II IL true, we're dras.
| tic. but they brought the results sought,
| and the financial position Of the country
| today Is stronger than 1t has been for
many years.
The year witnessed wide spread OF
the business depression with the pro-
luctive capacity Of the country's lead
| Ing industries cut down TO the lowest
cbb touched in generation. This
necessitatcd wholesale reduction or
suspension of dividends, and before the
financial skies showed signs Of clearing
by mid summer security values were
forced to the lowest level in years in
4 number Of instances to the lowest on
cCord. That is all now past history,
and with many other unpleasant mem
cries Of tho years happenings the rank
nd file of the financial community want
to forget.
The year. in truth, from start to
finish, wns a very trying one. but prob.
ems which seemingly were insur-
mountable found satisfactory solution.
! One obstacle after another was overcome
In both the economic and fundamental
,'tuations. While this applied very
largely to the domestic situation, there
we're, nevertheless, very happy results
obtained in the rradjustment Of the in-
tcrnatlonal position.
] Mngt ,e H.,
true, are still far from final settlement.
but sufficient satisfactory progress has
been made within the last three months
TO lend hope Of an equally quick solu-
ion OF these worries as was the case
With the multitude Of sticklers which
'ontronted the financial interests Of this
country nt the dawn Of 1921. The
dlustmcnt of these troubles Is no
'ongcr being handled in visionary or
lcortPical style, but is being met by
the application Of busincssikc prinCi-
es. which arc almost certain to have
such results which promise speedy
restoration of normal international
trade and financial conditions.
One of the most remarkable ac~um-
plshmcnts in the reconstruction pro-
gram was the rapid correction of the
9Verstrained credit situation. which was
Que to great extent to mastery han
dLng OF this delicate question by the
officials of the Federal Reserve Board
and unanimous ro-opcration Of rho
member banks. This was reflected in
the progressive reduction in the redis-
count rate BY the Federal Reserve
banks and It is quite certain even
stlIl lover rate would have been ac-
compliShed had IL not been for the fear
OF provoking n fresh outburst of undue
and unbridled speculative enthusiasm
Contrasted with year ag0, thc mon.
ctary situation confronting rho now
year seems little short of Dhc1omenoI
"A year ago at this time loanablo funds
we're next to being unobtainablc or
else at almost prohibitiyc rates Of in.
terest. Some Of the leading cornoro.
tions with unimpeachable credit wore
compelled to pay 10 per cent for urgcnt
funds. and for the greater mart Of rho
wear per cent was the ruling rate
There are signs already present wbicb
would seem to indicate The noss;bilitw
of money becoming n drug on the mar.
ket before the new year IS many month,
old. This would seem 70 he eimost mn'
believable, but 1t Is nevertheless a foot
II lOanable funds keep piling IN ot tLo
same rate they have the last tu.o
months, money will surely hacorpa n
drug.
The almost revolutionary change IN
the domestic money situation fonnG Al"
rect reflection in the rcmnrkobia 70.
vival in the bond market The roniJ
enhancement in bond values con no ac'
ceptcd as n reliable barometer ~ rho
falling earning power of money. for no
the rate of this commodity J"ciiras o tIot a"
much higher 20 bond values tborehT, |
bringing the income return ~ +be lot!l
ter within closer porjtv NJ ,ho oornGH,
power of idle funds. Gaining
1t is not 1921. but rotber 1000 T.,
which most eyervbodv ia rnost c,,, ="
ccrned. While business conditions conii rU'ii
be much better. recognized ovtbori,in. %io"
are confident in their nrnG;ctions ,Lo, .ILm,
within the ensuing next twnIvo ,HortTs ui''S
there will be a gradual and stooTU ''ro's ro
turn OF prosperjtv hnii. %'N rno StrauS re.
"., "h" oetteT business principles |