The Washington times., 1922-05-29
Market Comment

copyright iszz oy Cosmop0htah Ne"s
NEW YORK. May 2s.-The whole
country radiates optimism and
cheerfulness as the new week
opens, with promise Of further i'm
provement in general business and
financial conditions, not only In
America, but also in the nations
across the water. A remarkable
the least year in bringing the coun-
try back to conditions at least APP
preaching normal; and while. dur
ing a great deal OF that period, we
had to be satisfied with promises
rather than actual accomplish
ments, all Indications now point to
an end Of the period Of promise
and the actual ushering in Of that
of real accomplishments. 1t is
difficult to see how any real salts
faction can be felt, however. in the
continued idleness Of a large por-
ton of the money and credit sup
plies Of the country. 1t Is all very
we'll to enjoy the benefits OF low
money rates, but II Is better for
these rates to be determined by an
abundant supply. rather than the
failure of the business communities
to avail themselves of the supplies
which they actually have. 1t il
just along these lines that improve
ment should come during the next
year or two II we are to have
genuine prosperity. We must
utilize all the facilities within our
reach, not excepting the abundant
credit and money supplies OF the
country.
The Federal Reserve Board reports
that the index number OF Wholesale
prices in the United States compiled
for the purpose Of international com
PARSONS increased about two points
during April, or IA per cent. I'm.
ported goods advanced points to
l15, the highest point since Novem-
Der, 1920, and domestic goods in
creased points from the index Of
l44 to 146. Raw materials and pro-
ducers' goods rose points, while
consumers declined 2 points. Com
parsons with a year ago show that
the index number of all commodities
moved from lag in April. 1921. 10 l42
in January, 1929, from which time II
has advanced to 148, a net gain for
the year Of 3 points. Raw materials
moved from 1876 down to 133 and up
to $50, a net gain Of II points. Goods
produced in this country moved from
l4S down to 139 and recovered 7
points to 146, a net decline OF points
for the year. The Federal Reserve
Board index number Is determined
from the compilation Of 100 whole
sale price quotations for representa-
tive commodities in the leading
United States markets.
The United States Labor Boards
decision in the matter of the wage
scale for maintenance of way en-
ployes was not very enthusiastic
ally received by the railroad leaders
today. Instead of the cut OF 49,
per cent in. wages they had hoped
for at least 20 per cent reduction
Should the labor board carry out
the same schedule in other divisions
of railroad labor. the net result
added to the revision made in July
Of last year. will bring the wage
scale to about the level which pre-
vailed prior to the 100000. 900 In
crease granted in May, 1920. Not
withstanding the dissatisfaction eI
pressed by railroad leaders. the
cision OF the Labor Board cannon
be other than favorable to the ousi
ness interests OF the country In
general. Under a pledge given to
the public on different occasions
the railroad managers will imme
diately pass along the reduction
in operating costs to patrons OF
the railroads, that is, the ship
pers, and possibly commercial trav
elers. As the Interstate Commerce
Commission made no reference to
passenger rates, It is hoped that
the railroads themselves will make
the much-needed revision in this
department OF their activities. with
continued increase in traffic and
a better scale of income and expen
diture, the railroads should now be
able to see prosperity in the very
near future.