The New York herald., 1922-08-28
FINANCIAL NEWS
AND COMMENT
Big Business Still Held Back
by Railroad Strike and
Coal Scarcity.
STEEL MEN CONFIDENT
STEEL MEN CONFIDENT
Their Action in Advancing
Pay and Prices Indicates
How They View Future.

announced by the United States Steel
Corporation and the turn taken by the
political and economic situation in
Europe which resulted in drastic
break in marks AMI francs Which OF
these was the most important and to
which must be attached the greatest
significance is difficult to say.
Certain it is that! a great deal OF faith
had been placed IN the ability of the
railroad heads and their striking shop
men to get together at the conferences
of the week. and it was not until a
definite official statement was issued
fatty declining once and for all to listen
to any talk of restoration of seniority
rights to the strikers that the public
| gave up hope of an immediate settle
ment. Even now, with Individual con-
ferences going on IN which the separate
roads are taking up the points at issue,
there is a feeling, based of course
largely on hope, that some settlement
will be effected and the roads will soon
again be running in normal fashion.
Great Need for Production.
On one point there can be no debate
A tremendous business is now held ir
leash by the railroad strike and. to
some extent, by the failure of the an.
thracite workers to get back on their
Jobs. The resumption OF operations ir
the bituminous fields has been most en-
couraging and wilk no doubt go long
way in giving business a start. More
must be done andi done soon. however
II the American people are to be per
mitted to take advantage of the great
opportunity now offered them. Never
was there greater need for production
rever were shelves more bare Of sup.
plies. Money is plentiful and aside from
the labor situation at this moment vir.
tually every obstacle in the way Of tre.
mendous Industrial progress has beer
removed.
Probably no better indication OF the
excellent prospect for the immediate
future could be given than announce
ment by the United States Steel Corpora
tion that wages OF employees were tc
be increased by 20 per cent. This was
Immediately followed by similar ad-
yances on the part of the Independent,
steel companies. The principal reason
for the advances at this time was the
desire of the steel companies to keeI
their organizations intact and not allow
them to be disrupted through desertion
to other industries where the rates OF
pay were materially higher. In going
to such lengths the big Industrial leaders
who direct the policies Of these con-
Germs and who are probably better fitted
to Judge the future than many others.
entertained firm conviction as to the
prosperity of the future.
steel Profits Unimpaired.
Censure OF the steel makers for thus
advancing the pay of their employees
was heard, OF course. but 1t was largely
the result Of a selfish motive. In some
Industries where the rates OF pay have
not been reduced so drastically from the
peak of postwar levels as they have
in the steol industry, there was a mod
crate CRY that the action OF the steel
companies would make their path more
difficult to tread.
That may or may not be true. but II
the business Of the coming months I'm
proves as leaders In the steel industry
evidently believe It will improve. then
every branch OF industry will receive a
share of the benefits. That the higher
wage rates will not be permitted to I'M
pair profits Is Indicated by tho upward
tendency of steel prices. Before the an
week old, there Is q definite upward
trend.
The foreign situation last week pres
ented some decidedly unfavorable fea-
lures from financial standpoint.
Frances firmncss In her dealings with
Germany. coupled with tho failure of
all conferences on tho points at issue,
have resulted In a desperate effort on
the part OF practically every holder of
German marks to exchange them into
eAD S1AANAaSs ~ 0lnSE natlon9. AZ q re-
suit the downward course of exchange
rates on Berlin has been uninterrupted
with now low levels being reached near-
ly every day.
Marks and Francs Depressea.
The relationship between the German
and French currencies has become 10
close that the drastic break in the
one has caused a similar decline In
the other. and francs at the end OF
last week sold at the lowest level
since December. Another decisive
factor In connection with the break
in French exchange is the proba-
bility that France will have to devise
other means to meet her Immediate
obligations, for which she was count
ing heavily on the payments to be made
by Germany on account OF the repara-
tions assessments.
III there was any change In the crcdi,
situation last week, IL was easier Al
this time of year. this is big poin,
for consideration. With crop move
ments getting under way, II is ordl-
narily expected at this season that
New York funds will be drawn down
to the very bottom. but this year the
interior banks have demonstrated their
ability TO meet all demands withou,
making heavy drafts on this center.
| Tho reserve ratio Is maintained at ita
relatively high level and rediscounts
are being held down in good fashion