The New York herald., 1922-03-27


rapid than was expected in December Is
now amply supplied in the steel indus
try.
Mills Are More Active.
Mill activity at So per cent. of capac'
ity throughout the country contrasts
with 40 TO 45 per cent. in the first week
Of January and it is evident that the re-
covery OF this month has been founded
not on competitive price concessions
but on fairly general price increases ol
s.. 80 10 So a ton. Furthermore, the Will
insness OF buyers to pay the hisne'
prices lends point to the impression
voiced from time to time in January anc
February that stocks of materials have
been reduced to a point where consunl-
ers cannot rely on warehouse supplies
and accommodations in mill yards for the
products they require in day to day op-
erations. Tho receipt of forward con-
tracts by the United States Steel Cor
poration has risen TO g. per cent OF
plant capacity coincident with a rise
OF operations IN the last ten days to 70
per cent. And mill activity on its pres
ent basis in the leading unit of the in
dustry means greater production than
ala operations in the pre-war years.
when everything was running full.
The rise or stocks last week after Pc
riods OF hesitation was unquestionably
built on steel trade prospects. The inn
petus from that source was sufficien,
10 offset the unsatisfactory evidence OF
railroad poverty in certain directions
supplied b. the reduction OF the North
ern Pscifcs dividend. il was sufficien,
10 combat successfully records of def
c!ts within the industry itself in 1921.
IL was enough to halt the plain signs
Of heavy speculative realizing and short
sales in the first half OF the week. The
next market development to watch for.
now that January hopes about steel
conditions have been converted into
fact, Is the indication whether or not
the winter price advance has proceeded
far in dlscounting the actual progress
of business.
Call and Time Loans sitter.
The stlffeung of call ana time loan
rates was an expected aftermath p
March tax and Treasury payments.
Coincident with the redistribution OF
funds gathered IN New York city over
the tax day came transfers OF interior
.1,fsr
The low return which loans on call re-
ceived in the weel; before, but the up
ward odging or rates was OF slight mo-
mont against the background OF tie
highest Reserve ratio OF cash to notes
and deposits since the autumn Of 1871.
With many forces working FOR easier
money and orcdit II seems as though
funds must cor rtlnue tc pill up until Il
broad demand FOR accommodation comes
through aeiiyit. III industry, AMI. de-
spite all present optimism In respect 10
things present Ind ,h!ngs hoped for. it
Il improbable that heavy requirements
Tor crad.t in business will appear FOR
considerable time.
Railroad car loadings in tie Latest rc-
ports continue - run ahead OF those of
last year. and those in the wees OF
March II were the creates. since In.
first week OF November. That record
appears to forecast a good comparison
OF March earnings with tho income OF
March last year. a forecast similar TO
that made By the loadings in February.
But loadlnRs arr not 70 he taken as con-
elusive, Allowance must be made for
rBte declines made on many commcdi-
ties III long haul traffic. Increased car
loa aalngs show fise ~ the movement
Of goods. but income results depend
partly on the reiat tion between 1tcs and
wages. Too much should not bu ex-
pected Of rail results in the first halt
/ Of this year