The Washington herald., 1922-08-06
.FINA NcIAL
lARKEf FIRllNESS
|lNFACE OF STRIKE
HELDNOTEWORTHY
Various Security Classes
Rule St Despite
Trade u Elements.


Considering the Isettiements af :
fectihg business ~ the form OF
etrikes and a crisis In Europe. the
nrmness Of the markets during the
past week Is notew orthy. Despite
fhs refusal OF the railway execu-
tives to agree to the Presidents 8
proposal for restoration of senior
tty 80 striking shopmen. stock
prtces maintained themselves re-
partially well. the average for
fahs pushing ahead. In fact, to q
new high for the year. Bond prices
also have achieved new high levels.
hus rejecting continued ease In
money market. Even the for
90 Exchanges. which broke rather
bts pe1arding the interallied debts.
seovesed well. and with the ex-
ception OF the German mark. COM
mant prices which compare favor
ably with those existing during re-
cent weeks.
Recovery believed Wear.
This hrmness plainly reflects q
belief that the difficulties, while
serious. will be cleared up eventu-
eslly. ana that the present and pros
bpsctivs business are not yet such
As to suggest q reversal Of the
gsnsral trend toward recovery.
with regard to the railroad strike.
the government apparently intends
to. aliiew the roads q brief trial
Bperiod to demonstrate whether suf-
}hcient gains in working forces can
be made to restore ability to handle
necessary traffic. The coal carry
ing roads which tap the nonunion
felds In West Virginia and Ken
tucky are particularly involved.
These roads are extremely short
Saf craftsmen. and II Is the loss In
Rrrying capacity by these roads
hichr has cut nonunion coal pro-
ctin< from something like $780,
tons q. week to the 1000, 900
level. Whether or not the loan
Ropmen to these roads by other
ers will prove effective or
her the government will be
ID to take other measures will
be disclosed. Meanwhile the
ling factor in the minds of
ders appears to be a belief that
. strike will be settled some way
other in tho next few weeks. and
that its termination will find the
roads In a position to operate on a
profitable basis.
a Car Lsadings.
Indications as to just how seri-
ousIy the strikes are affecting in
dustry are somewhat conflicting.
Raiload car loadings for the week
ended July ~ are, exclusive Of coal.
quite good. the movement compar-
ing favorably with the best weeks
of the present year. The steel In
dustry, on the other hand. Is being
slowed down materially. the Steel
Corporations rate being reported
early in the week at 20 per cent,
as compared with rs per cent few
weeks ago Independent manu-
facturers have suffered more Sc
erely. their rate having fallen to
mething like so per cent Coal
DEDUCTION has been recovering but
owly and is stfll far short of the
ecessary volume. The next few
eeks are critical. and the deter
lining factor in the governments
titude and in the course Of the
rikes will be rate of gain In min
Z and rail movement. A fairly
Iarp recovery is essential
The British Note.
with regard to the British note
is fairly evident that 1t Is largely
French consumption and is
felifninary to next weeks confer
nce between the allied premiers.
VERY. possibly the British govern
nnent. also wished to go on record
as to the seriousness of the present
European situation and the need
for general leniency. Nevertheless
a desire to forestall demand by
Poincare for the cancellation of the
French debt to England probably
lies at the bottom of the matter.
II would not do to assume that
Britzin will refuse any reduction In
the French debt in return for re-
vision Of the reparations. What is.
more likely is that Lloyd George
will drive the best bargain he can,
not only as regards the reparations.
but the other questions which are
In dispute between Britain and
Franfs.
Germany's Position.
kremely serious may be judged by
the collapse In the mark. the recent
low Of DIX Of cent being less
IMAM one-tniro tno Naiuo oi4"e
before the bankers conference re-
ported It's inability to proceed with
Nlans for an international loan. The
effect OF such q decline upon Ger
man finances Is obvious While the
German mark may or may not go
the cay of the Austrian kroner. IT
IL cISar that sooner or later Ger
manys creditors must grant her
both relief Ard assistance. The
task of reorganizing her currency
and hEsnces will be. unfortunately.
considerably more difficult when
the bankers are again called on to
prepare q plan.