The Washington times., 1922-03-26
Steel Made Good.


trade situation during the last
week was the continually improv-
ing prospect for the steel trade. AS
new orders have been received the
steel companies have been putting
new units of the production into
commission, applying the torch un-
der furnaces that have remained
cold and inactive for two years or
more. Present conditions are a re.
versal of the vicious circle" which
caused the country such concern
two years ago. 1t Is now the "circle
of prosperity" m the operation Of
which increasing business creates
more traffic for the railroads, which,
in turn, must have more cars and
engines, making more business for
the engine builders, who require
steel for the purpose. Then the
steel mills add to their producing
capacity, bringing back the men
who have been on enforced vaca-
tions and prosperity Is again in full
swing. In an optimistic statement
today Judge Gary, head of the steel
corporation, said the business men
of the country have the opportunity
Of bringing about prosperity on a
fair, reasonable and honest basis.
There has not been the slightest
evidence of indigestion in the bond
market. On the contrary the de.
mands Of investors are Unsuitable. All
classes of listed bonds on the New
York and other exchanges Of the
country have been rising uninter.
ruptedly. Foreign bonds. public
utilities and railroad issues have
registered greatest activity on the
exchanges while the unlisted market
furnishes the tax-exempt municipals.
The total volume OF the weeks new
offerings amounts to about 5000
900, including tl5,125,O 900 State and
municipal, $12, 500. 900 foreign issues,
$4,000, 900 railroad, S6.750.0 900 public
Utility and 81 ,00O, 900 farm loan bonds.
Without exception these new issues
were heavily over subscribed within
short time after the opening of
the books. Trading in bonds on the
New York stock exchange has
averaged about $4,000. 900 daily.
Money Rates.
While the rates for call money
did not recede as low as in the
previous week, time money and COM
mercial credit was in good supply at
the old rates Of Az to Az. With
drawal Of Government funds in the
middle Of the week caused a slight
furry in the call market, as repre-
sented by temporary flight Of rates
to 6h per cent. The current state
ment of the Federal reserve banks
disclosed a further increase in the
reserve ratio as well as in the open
market purchase of bills. The
Federal reserve bank of Chicago re-
dncad 70 70
cent Friday and further reductions
both in the New York bank rate and
that Of the Bank Of England are
confidently expected. There Is no
reason to look for other than favora-
Bile conditions in the money market
for many moons.
Rather erratic conditions have
prevailed in the grain and cotton |
markets this week, due to some ex-
tent to the variation in foreign de- |
mand and to the fluctuating rates |
of foreign exchange. Southern pro-
have been large sellers of |
cotton, despite the prospects for |
decreasing cotton acre
age.
The general pragress Of business
during the week was highly en-
CouId8lnB' bdnk ClearanCeS show |
an increase, unemployment is on
the wane, commodity prices are be-
established and buyers are
showing a broader inquiry for goods.
Our foreign trade lags, as also our
mechanism for financing this trade.
But there Is evidence that the ef-
forts of our bankers who have
striven long and faithfully to build
up an adequate foreign financing
system is at last to be rewarded.
The Federal Reserve Board is about
to relax Its entangling regulations
On bankers acceptances. and Ameri.
can bankers will thus be able to
with foreign bankers on
even grounds. It is a significant
and one that will
doubtless be productive OF good re.
suits.