The Washington herald., 1922-07-23
FL N A N CIAL
RENEWED EASE IN
MONEY FURNISHES
! W WEEKS FEATURE
Probable Bottom of Cred
Probable Low of Credit
Prices Proves Pet

e'ewed ease In money furnished
the Outstanding financial feature
Of the past week. Opinions have
BEEN divided for some time as to
whether the price Of credit had
touched bottom. That the major
.partsof the fall in rates was over
vas generally agreed; but whereas
some observers held that the in
dustrfal revival had reached the
point where commercial demands
for funds would cause fresh bor-
rowing and liquidation In securi-
ties..ythers maintained that a
furthf slight easing was to be an
ticipafed during the midst Of the
sun1fQer season. That the latter
yieWSwas the correct one may be
seerfrom the decline in time money
to Sz per cent. the establishment
OF sl-4 per cent rate on the best
gra43 of commercial paper. and a
recssaion. even II Temporary In
bankers' acceptances to a rs and
peEcent basis.
Bank Reserves Untosehed.
AnAough the July holidays
called forth the usual demands for
currency 1t is clear that better trade
so 70 Is making hardly any fresh
demands on the banks With lower
prices and more rapid turnover,
business men still seem able to
hnanSe their operations without
calling for increased outside as
sistance- A further thawing Of
frozsn credits" and accumulations
of prsfits and dividends add. mean
whilS to the supply of idle funds
teekihg employment. Persistence or
strikes, which act as governors on
trad accentuates the condition
whilss the fall crop operations are
not vet approaching the stage at
whicA they occasion an active de-
manh for accommodation. Accord
ingiy and with Great Britain in
stftu6ng a fresh gold movement in
this direction there is little in the
situation to suggest any immediate
change in trend of the money mar
ket. -
- Securities Firm.
Thaf the securities market snould
showsstrenGth is. under the circum-
stancsS quite natural. Bond prices
furnish more or less direct meas
ure of the supply of idle funds: a
certain proportion of the latter.
however. find employment in the
better grades Of stocks. The labor
disputes Furthermore. while entail
ing slowing down in the rata or
progress do not change the broad
aspects of the business outlook.
Present indications still favor a
continuation of the processes Of re-
vfval in the fall. While annoyance
and embarrassments probably lie
ahead. there is nothing as yet in
sight to suggest that profits will be
obliterated generally during the
Ssecond half year.
Strikes Retard.
The exact measure of retardation
now being exerted by the strikes Is
1heult 10 estimate. One may judge,
however. that while still relatively
small, II is growing. The shop mems
sftrike has caused a loss of 1850. 900
Ftion for nonunion mines. This, to-
ton from nonnunion mines. This, to-
gether with the coal strike. probably
has cut steel production by some
thing like per cent
A considerable number of Ohio
blast furnaces have been banked and
well posted observers consider that in
the absence of a settlement the whole
industry may lose 10 per cent from
its recent 15 per cent operation be-
fore the end of the month. As far as
the Presidents plan for the resump-
ton of mining is concerned, a Ger
tain amount of production may be
Nhr 20 Iva d
which would indirectly relieve con-
gestion on the roads now bringing fuel
from the West Virginia and Ken
lucky fields: but 2 major recovery
in output seems unlikely both be-
cause of the mining laws in Illinois
and Indiana and because of the rail-
Ioad difficulties. In any event a car
portage this fall seems to be as
ured.
Foreign News Cheerful.
News from abroad. meanwhile, is
more cheerful. The guarantees COM
mittee which has been studying Ger
imam finances at first hand. has re-
turned to Paris and apparently is
prepared to report to the reparations
commission that a breathing spell for
Germany is necessary and that the
latter country is willing to accept
Ireasunable amount Of allied financial
supervision. French opinion obvious
ly Is being prepared for a moratori-
pm. At the same time it is intimated.
apparently from inspired sources. that
Grest Britain will relinquish her
krights in connection with the repara-
ftions II France will agree to cut the
total German obligation to 10000. .O00.-
1000 kold marks. After the guarantees
committee has reported formally the
allied premiers are to meet to discuss
the whole situation. Following on
the hopes and disappointments Of the
past two years it would be rash to
conclude that tse matte, is to be set
tiled quickly: the outlook again COM
pares favorably. however. with that
Xexisting at the time the bankers