The Washington times., 1922-06-11

NEW YORK, June 1o.-Decided
progress has been made during the
past week toward the DEVELOPMENT
Of a more stable basis for discussion
OF the European financial situation.
The committee OF bankers in Paris
has been requested TO suggest
changes In the reparations program
such as may be necessary to insure
the floating Of q foreign loan. while
washington authorities are credited
with the opinion that such modfficA-
tons may pave the way 70 the
esta blishment Of Satisfactory basis
OF borrowing. In spite OF the tenn
plrary difficulties which have made
their appearance, due to French
objections, this IL progress as com
pared with anything heretofore. al
though there is naturally long
way still TO 70 before any definite
footing Is arrived at. The effect OF
the improved prospect. coupled with
the announcement that Great Brit.
ain n now In condition to meet her
interest obligatione TO the United
States, has once moro brought
sterling TO a level around $3.50, and
has tended 20 improve the other
European exchanges.
Railroad Problems.
One of the principal problems OF
the stock market continues to bo
afforded by the railroads. The good
earnings showing of recent months
continues. class I roads reporting
for the month Of April net earn.
ing on tentative replacement valua-
tions only a trifie below per cent.
This Is not far from the amount
that IL needed lwhen averaged with
former months) to meet the rate
which the interstate Commerce
Commission has set an representing
a reasonable return on railroad in.
vestment. Decline from March. Is
readily explained by the continu-
ance of the coal strike. which. how
ever, appears to be nearing It's close.
The action Of the Labor Board, In
looping off another $s0.0oo.O00 from
wages brings the saving to the
lines into some kind Of relationship
TO the loss caused by the 10 per
cent cut In rates. Car loadinRs are
better than at any time In recent
months, and were II not for the
possibility Of labor difficulties the
roads would be in q much more
satisfactory position than hitherto.
IL
being. q good year. the annual re,
ports which have lately come to
hand are by no means unsatis-
The Steel Situation.
Increase In steel and iron produc-
ton continues, and coupled with II
there In now decided advance IN
steel prices. The proceedings fniti-
ated by the Federal Trade Commits
sion In connection with the proposed
steel mergers are regarded by those
closest TO the companies as not
likely 10 cause any serious difficult
ties in carrying out the terms out
lined 70 the prospects OF the merger.
In these circumstances, advance In
the values OF the independent steel
shares is natural, while at the same
time current local testimony az TO
its economical production costs show
clearly the intrinsic capacity OF
United States Steel 10 compete, and
warrants the decided advance In the
price of that stock In the copper
field higher prices are the natural
outcome OF stronger demand and IN.
crea sed activity; while another in
crease In the price Of oil reflects the
better demand for that commodity.
and accounts for price advances In
the principal oil stocks. The busk
ness situation 10 Ear as rnanufactur.
ing and distribution are concerned
is quite obviously at level that
corresponds 10 the pre-war normal,
and only an active revival Of foreign
trade would be necessary to pur
basic Industries upon a footing
which would call for the operation
OF plants nj full capacity. Notable
during the week has been the an
nouncement Of better conditions IN
the leather trade. and the rnainten-
snee Of demand fcr building ma
teriais -