The Washington times., 1922-10-01
Weekly Financial ReuieW
rBy HENRY cLEws,
Of Henry Clews q Co.. New York Bankers

NEW YORK, Sept. 3O.-Con.
tinued uncertainty regarding the
Turkish situation. notwithstanding
the apparent development OF bet
ter relationship between France
and Great Britain, has naturally
tended to retard progress in the
stock market during the past
week. Thus far. there is nothing
to indicate the development OF any
serious war scare" certainly not
on the scale that had been feared
ten days ago. Nevertheless, the
contest in the Near East has oper-
ated to unsettle the general situa-
ton in so far as all foreign values
are concerned, thereby depressing
exchange quotations, and 80 react
ing in an unfavorable way upon
local values.
Increasing Volume Of Business.
Domestically, the volume of pro-
duction and trade continues to in
crease in gratifying way Not
few steel plants are now reported
as operating to near 20 per cent
of capacity. This means that they
are getting back well toward their
original pre-strike volume of op-
erations and are in a fair way to
keep up with the orders that are
coming to them. No surplus of
cars now exists on any of the rail
roads, while the spread of freight
embargoes shows that the volume
of traffic is already well up toward
the full transportation power of
many of the lines. Receipts of sta.
pies at primary markets are ex-
Ceptionally heavy, with the result
hat business in the Western cen
ters has been decidedly good The
effect of this situation on whole
sale and retail trade has been
highly stimulating, and orders in
many lines are ahead of eXpecta.
tions; the declines which have oc-
CURED therefore in actual quota
tions have been the result of tech
nical and financial conditions, rath-
er than of industrial or business
factors. Lack of labor, even at
high wages. is already an existing
condition in a good many branches
of trade, and further wage in.
Creases are now predicted. The
situation in this respect is not al
together satisfactory, since 1t tends
toward an aggravation of the al
ready high prices OF manufactured
goods, despite the fact that agricul-
'ural values are in most lines low,
as compared with costs.
After-effects Of Strike Not Serious.
Publication of the earnings of some
If the principal railroads for August
'hows very satisfactory increase in
ross income. Recent computations
II the figures for about dozen of
he leading lines indicate growth
4 about "a per cent in gross earn.
ngs and 80 per cent In net after pay.
nent of taxes, as compared with
1914. The August net figures, how.
'ver, show the decided effects Of the
recent strike, recessions being due
very largely to increased expenses.
Taken all in ALL however, the effect
Of the strike upon railroad finance,
20 far as present indications go, ap.
rears to have been far more limited
han had been supposed. On tho
whole. the roads, therefore, have
been able to hold their own in the
market from day to day fairly we'll,
'onsidering the sharp decline which
has taken place in he industrial list.
The adjournment of Congress with.
out any action upon changes In the
transportation act Is taken to indi-
cate that that statute will remain
undisturbed for So e time TO come,
especially in view the fact that 1t
Ia seldom possible sp enact any far.
reaching legislatio Rt the short ses'
sion which opens i'm December, while
President Harding has within the
past few days let It (be known that
he Ia disposed to discourage the
adoption OF much led lation during