Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-05-29
CONFIDENCE is
INSPIRED BY
MONEY MARKET
Stocks Now Are Sounder Than
for Many YearS-N0ne
Discouraged.
Special to Indiana Daily Times
and Philadelphia Public Ledger
Ry MONITOR.


by MONITOR.
NEW YORK, May 29.-Speaking from
the standpoint of sentiment, the st0As
market seldom has been in soUnder
position than 1t IS at present. There is
confidence without over confidence. and
operations are tempered by caution.
There is a disposition to take into cal
cnlation all influences and to attempt
according proper weight to factors on
both sides, 1t is notable that reactions
produce no encouragement and excited
spurts do not lead to hysterical enthu-
siasm. 1t is a business like and orderly
market.
The money situation continues 70 give
hope for maintained stability. The Fed
eraI reserve ratio this week was prac-
tically stationery nj 10. There appears
20 be supply of funds ample fer mar
kct requirements ana the business re-
yjval has not yet made such call upon
the credit reservoirs IF the country as 10
cause competition between speculative
demand and industrial requirements. The
occasional Gurries in call money are
looked upon as local wind squalls rather
than baTomrt-ic inai ,1;ions
Ry far the most Interesting develop
fnents OF the week are those relating to
the railroad situation. The Interstate
Commerce Commission decision reducing
rates 10 per cent was received with
VARYING expressions. Those who took
the view Of the railroad executives con-
sidered the action premature and drastic.
Neutral business sentiment accepted it
as essential nnd inevitable readjustment.
Railroad men take the position that the
eat will not stimulate traffic They stand
alone in this view. As q matter Of fact,
Sweden has ordered a 20 per cent re-
duction in rates for the express purpose
of stimulating traffic and tightening the
load on business.
II is 10 be conceded that a rate re-
duction of the extent ordered would
piac- an intolerable burden on the car
Tiers il traffic were TO continue On the
low scale OF 1921. and If there were no
compensating effects In the form OF
downward wage reyiSions. The Inter
state Commerce Commission, however.
has given an indication of its confidence
IN the business outlook by taking into
consideration tie iikeliheed-even the
certainty-of largely increased tonnage
for the future Wage revisions ON GER
tain classes Of employees are expected as
a result OF action by the Railway La.
ber Board almost any day. aud a gen
eraI reduction IS looked for in the
COURSE VI NAAS tlGAt AtN N-Nh'-
Taking into consideration the volun-
tary rate reductions effected by the car
riers themselves ana the recent order Of
the interstate commerce commission,
there is a theoretical falling CT in rere-
nue. Of about 500 COG, UoJ as 4 result. In
creased volume If traffic viii counteract
some Of this loss. part Of it should be
Offset by lower operating costs through
wage reduction. while nlaragcrial eco
Monies may 90 stu FURTHER toward multi
fying the lower rate basis. At any rate,
il is not believed that the carriers Will
be treated unfairly. AMI for this reason
sentiment is steadfastly, although not
hystertsallr, hullfsh On the rails.
Less attention is being paid 10 the coal
strike owing 10 lie estimates that tie
supplies Of frel under existing conditions
will last until the middle Of August
Aside from sporadic openings Of mines
here and there there are no indications
of break in the strike.
General business is better. Industrial
operations are On an increased scale. The
output Of automobiles IS sGrpri Singly
large. particularly when 1t is realized that
all output records are being broken
Building operations are approaching a
record breaking scale. Lumber prices are
rising, and business in this industry IS
intensely active.
General satisfaction IS expressed over
the preponderance IF advances over de
rliues in the commodity group. April
shows IS gain agains: Fl losses.
Evidently the country has tired soon
enough Il dcia;ion.
This week the bureau OF crop esti-
mates of the Department OF Agricul-
ture Will issue its report on the condi-
ton Of the cotton crop. This IS ex-
pectcd to show a condition of about 40.
The figures will not be conclusive IN
respect to yield. No acreage report will
be published until July J. Serious mis-
gtvings over the yield have been created
by reports Of widespread weeyil infeSta-
tion, as it is admitted that no matter
how hatt.r!ng the appearance of the
plant may be, ner how well cultivate
may lie the fields, crop OF averag e
yield per acre Is an improbability unless
some method TO combat the boil weevll
is found anil practieed efficiently Oh a
large seaie.-Copyrigh 49,, by Public
Ledger Company