The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-02-19
Weekly Financial Reuiev
BY HENRY CLEWs.
Of Henry Clews Co., New York Bankers.

NEW YORK, Feb. 18.-Practical
certainty that the soldiers bonus,
whether provided for or not. will In
volve no new taxes on securities
transfers has been a great relief to
the stock market as well as to the
financial community generally.
President Harding's position. ad-
verse to the sale OF bonds as basis
for the bonus, also makes that
means OF raising money far less
likely and the removal OF this dan
ger has also tended to produce a
feeling Of greater optimism.
Encouraging Financial Reports.
One of the most hopeful features
Of the past week has been the publ
cation of encouraging financial re-
ports covering the year 1921. Many
OF these have related to railroads,
class one lines showing $42,652,000
earnings for December, or nearly
four times those Of a year ago, but
there have also been a number OF
rejecting the operations of indus
trials. Among the latter have been
Baldwin. Locomotive. the Postal
Telegraph Company, and a variety
OF others. From these II Is fair
inference that the misfortunes or
1921 were largely concentrated In a
list Of industrial concerns which
were carrying large stocks OF goods
subject to price deterioration. In
most Industries, however. losses or
this kind have been written off. As
returns from the larger railroads
are received II becomes evident that
the majority will be able to show
fairly satisfactory earnings even for
1921. When this Is coupled with
the favorable decisions Of the In
terstate Commerce Commission in
recent cases. the strenth Of the rails
is explained. The decision to give
Eastern roads a Is per cent division
of the proceeds of long haul traffic
il in itself a decided point in favor
of that group Of lines, and particu-
larly of the New Haven.
Growth In Volume Of Business.
The growth Of business in many
lines is at last reflected in the steel
industry. Although the latest re-
poration showed a trifling recession
in untitled orders, more recent To-
cal news now indicates considerably
greater activity at the mills as a
result OF stronger buying in many
parts OF the country. The railroads
have at last begun purchasing,
while the increased activity Of bush
ness is already making itself felt
in larger demand for structural
products. REIMBURSEMENT in wages
continues to be an essential to sue
cessful production. Such readtust-
ment Ia resisted by employees, II is
true, not only in the textile trades
but in the coal mining industry and
elsewhere; and II is still uncertain
how these controversies will turn
out, but there can be no broadening
of our foreign market and probably
only a limited increase in domestic
demand without reimbursement Of
prices and wages to correspond with
other incomes. Eventually the same
situation will be found to exist in
the railroad field, although a settle
ment with the employees Is still evi.
IDENTIFY some distance off In that
branch of business. The fact that
under existing conditions total out
put can grow as much as II has with
in recent months Is relnarka BILE
testimony to the industrial strength
Of the country; one that can be full.
ly understood only by comparing the
returns for this year with those for
the corresponding period year
ago.
Heavier Taxes a Menace.
The one thing which will most
effectually tend to impair the i'm
proved prospects in business will
be thes improved prospects in
business will be the imposition Of
heavier taxes now urged in Con-
gress and In some States partly as
a means of paying bonuses and
partly in order to provide for other
extravagances. According to care
full computations about $3.50, 900 900
has already been appropriated and
made available by State govern
ments for payments to ex-service
men most of II within the past
year. while Congress has already
currently appropriated $3.50 ,000, 900
for their needs making a total of
about $500. 5000 in a single year
or a little more. Senator Borah's
estimate that, as things are now
going, OUTLAWS for service men will
eventually total $1,000, 000, 900, does
not seem extravagant when a study
Ii made of our past pension expe-
rience. The sales tax 30 generally
favored by the financial commun.
ity aR n substitute for exCessiye in.