Omaha daily bee., 1922-01-02
Financial
&he Mem fork Wmes.
BY ALEXANDER DANA MOVES

lNhchgO ITbune-Omaha bee Lensed Wire.
| New York, Jan. lit is often
necessary to warn the financial pub
lie, especially when, the beginning
of a new calendar year calls forth
magnitude Of expert predictions
as to what the new, years financial
character will be. that the course
of financial history cannot be de
vided and mapped out by periods
running from January | to Decent
ber 81. Financial history since the
armistice, has passed through at
least four distinct and separate chap
ters and they we're not measured
by; IL months. The period OF pre-
caiitionary reaction which came with
the surrender of Germany lasted, so
far. as the American market indi-
Gated, from November of 1918 to
April, of 1919. .... .us.
The worldwide revival Of specu-
lative enterprise and the, wild ex-
pansioh!!Sof credit which came with
Fit. continued from April, 1919, to the
neighborhood OF May 1920. The pro-
longed and violent downward read
justmeflt of trade, credit, prices and
industrial activity, the scope and
magnitude of which had been wholly
unforeseen, occupied all the periods
from the. spring Of 1920 to the early
summer of 1921, though its climax
undoubtedly occurred in November
of 1920. $685.. III.
S1nw RannvArv
The uncertain recovery which imme-
diately followed last years lowest aver
age Of commodity prices occurred In June,
gave place to slow and hesitant recov-
rates during May, plainly visible in Au-
gust. and September, less plainly In the
three ensuing months which clearly
Pnobabiy I'VE are still in that period Of
uncertain readjustment to the new econ
| omic conditions and probably we shall
remain in It for some time to come. Yet
the subsequent course Of events may show
the great rise OF Investment bond prices
+ in last November, the spectacular recov-
cry Of foreign exchange in December and
terna tional. relations, political and econ
Faomic which was coming into view during
both those months, were themselves the
sign thatNa new, chapter In the worlds
after-war economic history had begun last
autumn. 1T will extend at any rate into
the coming year. - -
Inc lntcTHdtlOHHi5 ecUHOlhlC COHl u euCo
which viii undoubtedly be held In the
near future, ought to have this much OF
real value shat the financial situation.
In the various European countries can
now be considered in all Its aspects and
relations and In whole under. favorable
circumstances. as.t.N sr.
/ All, Face Same Problems. (.
This will not be the first conference Of
the Kind held since the war But the
Brussels conference Of 1920 got nowhere
at ALL: its principal result was to prove
that the immediate solution OF Europes
financial problems was Impossible.
In any conference this year the same
problems will recur, but under greatly
altered scircnmsta Investment mar
/ kets are in totally changed condition.
Credit is no longer overstrafned and the
worlds money rates measure abundant
supplies of available capital in every inn
| portant market When the former con-
| ference WAS In session, increase. In paper
currency issues was going on throughou.
and cost Of government were rising, not
only in central Europe but in every
other country, ~
Today we haye learned, through the
7 achievements Of England and France dur.
ing 1921, how the paper currency prob
! lem can be attacked. Not only So. but
costs of government and business have
been reduced through readJustment OF
prices and wages. And long step to-
ward return tn. normalcy in the lnterna-
l. 1tional trade balances has been taken
This is a wholly different situation from
that of 1919 or 1920.
-, Kansas City Live Stock.