The New York herald., 1922-08-21
FINANCIAL NEWS
AND COMMENT
Economic Students Predict
U. s. Will Have Greatest
Period of Prosperity.
STRIKES ARE DRAWBACK
Stock Market Continues to
Discount Better Times
for Business.
STRIKES ARE DRAWBACK

PiePohuoidHco OF developments
during the past week have bean Of
constructive character, and have been
reflected to marked degree in the move
ments Of various financial markets.
Stocks have advanced steadily since the
frst OF the week, and bonds, while they
have not gone ahead with the rapidity OF
stocks. have displayed q firm tendency
with the demand for certain issues very
heavy. Commodity markets. with the
exception OF that for wheat, have tended
gradually higher. and foreign exchange
too with one or two exceptions, has ad-
vanced materially.
All In all, the last week revealed mere
than any other similar period recently
the basic soundness OF general conditions
and the confidence of the great mass Of
people that present labor difficulties are
no more than passing clouds on bright
horizon. The agreement arrived at dur
ing the week between the striking miners
in the bituminous fields and the opera
tors was a constructive factor.
Seek settlement OF Strike.
No less important was the disposition
shown by the two railway factions to
get together to discuss means of settling
their controversies. Although the ses-
sions of the labor leaders with the rail-
road executives was OF small result in so
far as actual news OF their progress was
concerned. they had a decidedly stimulat-
ity effect on security prices, demonstrate
Ing as they did the desire Of both sides
to get together and put an end to their
present troubles.
What the immediate future will bring
forth in the way of business and pros
perity once the labor difficulties are put
| behind, is a subject on which there Is
almost unanimous agreement on the part
situation. With but few exceptions it
is their confident opinion that the United
States is in for the greatest period Of
prosperity that ever has been witnessed.
Big industrial leaders as well as promi-
nent bankers are OF one mind in that re-
gard. They feel certain that business
and industry, now held in leash by the
uncertainties Of the strike situation. win
bound ahead with unparalleled vigor once
the restraint is removed.
Bank Foresees Trade Reyiyal.
In this connection the monthly review
Of general business conditions by a lead
ing bank in New York is OF interest.
| when all allowance has been made, .
the bank points out. for the clouds now
overhead and for the great seriousness of
the forces of disorganization as ex-
pressed In the strikes. the domestic eco
nomic position presents pleasing con-
trasts with that prevailing one year ago,
when American business was at the low
est ebb In many years. To measure some
OF these contrasts Is to gain the twofold
conviction that business recovery has
been substantial, and that when the
strikes are settled the revival will
logically continue many months before
reaching the crest OF new prosperous
era"
The bank then goes on to make COM
parisons Of important statistics with
those of year ago. Bank clearings in
los cities are 1871 per cent higher than
year ago; industrial employment In
New York State IL per cent. and
throughout the country 15 per cent. pig
iron production 1T per cent. zinc pro-
duction 81 per cent. copper production
20 per cent; automobile production So
per cent. sugar MEETINGS IS per cent
electric power production 81 per cent
building contracts 81 per cent. &c.
These figures are beyond doubt the
true index OF what has happened and a
firm foundation on which to build tre-
mendous prosperity for the immediate
future.
stock Price Trend Upward.