The Washington times., 1922-01-08

NEW YORK, Jan. 7.-Further
progress toward definite adjust.
ment between European -. powers
seem to be In sight az a feature Of
the meetings shortly to be held at
Cannes and The Hague. There il
now unquestionably q well-marked
program Of procedure to which Great
Britain Ii slowly bringing the repre-
sentatives Of France to assent. It
doubtless involves the modification
Of German indemnity agreements to
the end that payment may be facll-
itated. With this out Of the way as
preliminary, the conferences In
question may devote themselves to
the development Of much-needed
plans for stabilizing exchange and re-
storing monetary soundness.
Federal Finance.
With the reassembling Of Con.
gress the question Of Federal finance
once more. assumes first-class import
ance. There Ia but too much reason
to fear that q soldiers bonus plan
may be passed. Dangerous legisla-
ton affecting the banking system Is
also contemplated or on the point Of
passing. The death Of Senator Boies
Penrose, Of Pennsylvania, chairman
of the Senate Finance Committee,
creates an important vacancy in the
upper chamber and necesStates new
political alignments, II confusion on
the tariff question Is to be avoided.
A proposal to adopt a sales tax
plan for the purpose Of paying
bonuses tends to hurt the sales tax
itself as a feature Of our fiscal sys.
tenn. Congress has not yet found the
courage to provide for any internl-
tional debt funding measure. All
these matters are under discussion
on the part Of the Administration,
but to find a way out Of the tangle
calls for the support and assistance
of the business public. These. 1t
would seem, are In a fair way to be
rendered by some organizations.
with Government credit at a higher
level than for many months past,
and with the budget satisfactorily
balanced, Industrial and trade condi.
tons being generally brighter now
than for some time, II would bs al.
most unthinkable that the community
would submit to policies wholly sub.
versive Of progress or soundness.
New Year Business Better.
Various Indications Of continued
Improvement in business are to be
noted, among them. the growth Of
OUTPUT in various industrial lines.
Recessions in the price of agricul-
tural commodities, notably wheat and
cotton are, however, seriously re-
earded as being indicative Of less
satisfactory conditions for the farmer.
This makes the problem Of financing
an adequate acreage for the new
wear important, and lays a large bur-
den of responsibility upon the coun-
try bank. The export situation has
changed but little within the past
month and obviously calls for new
financing methods at the earliest pos
sible moment. Curtailment Of the
price of crude oil during the past
week hurt oil stocks, but was from
other points Of view q desirable
change inasmuch as fuel has been
abnormally high. A parallel reduc.
ton in coal prices is foreseen by
many and will greatly help manufac-
turing conditions in q number Of
lines. The railroad situation has
improved in at least a correspond
ing degree with other business
showing about 4 per cent net earn
ings on class I roads. With a rea.
sonable measure Of conservatism on
the part of the Government, trans
portation will apparently succeed In
reaching a stable condition sooner
than the larger manufacturing en-.
terprises. Notwithstanding that a rel
atively unsatisfactory business year
In steel Ia foreseen by some experts,
Il 10 to be expected that there will be
a steady upward progress. M Is In.
dictated by recent developments IN
the industry and by the general
shortage Of supply.
Money Market Developments. .
The most important development In