The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-02-26
NEW YORK. Feb. 20.

NEW YUM, req. 20.
Continued dispute about the sol
diers' bonus and agitation for the
adoption Of either sales tax or some
substitute taxes has naturally
aroused fresh anxiety in the financial
community during the past week.
Special note has been taken OF the
proposal urged by thick-andthin
advocates OF the bonus that the
legislation be adopted without making
any definite provision for 1t. allowing
the bonus payments to operate simply
as q general charge against the
Treasury" President Harding's at
titude gives good guarantee that
nothing Of the kind will be done, yet
there Is always danger OF some legis-
lative maneuver which may unex'
pectedlyy enforce action.
Two noteworthy reports relating to
our banking situation have been II
sued during the past week-the one,
the regular statement OF the Con-
troller of the Currency showing con-
ditions at the close Of 1921. the other
the annual report of the Federal Re
serve Board for that year. In both
the great contraction OF credit ana
the reduction of bill holdings and In
vestments to a low point furnish the
outstanding feature, but In the state
ment Of the Controller Of the Cur
rency there Is found evidence OF an
"upturn in business" as shown by
the increase in the assets OF national
banks. This increase In assets IL,
however, in no small measure due
to an enlargement OF specie, while
the report of the Federal Reserve
Board also shows the same great ad-
vance in cash holdings. The board
Is undoubtedly right in asserting that
the low point in business has been
reached or passed, the Controller OF
the Currency placing this low point
somewhere during the last three or
four months Of the year 1921.
Indications OF Better Trade.
The indications Of better business
are, however, not confined to bank
ing statistics or reports Of financial
prospects. Various corporation and
railroad reports during the week
have been encouraging. while the
further adjustment Of our foreign
relations on business matters has
also pointed to decided Improvement
The settlement of the Mexican tax
question has helped the oil industry
materially. In sugar, the gradual
sale Of the surplus stocks and the
gradual liquidation Of tho large
liabilities incurred during the spring
and summer Of 1921 for the purpose
Of carrying the produce over the
low.priced period has been very
helpful. In addition the renewed
Improvement in orders for steel once
more indicates the revival Of demand
in that line Of business, the export
prospect continuing to be the least
satisfactory phase Of the metal situa'
ton, though better in the Far East
Farmers Condition Improves.
One OF the most notable facts OF
recent weeks has been the improve
ment in the condition Of the farmer
due to the advance Of agricultural
prices. While this increase has, OF
course, not been so pronounced In
cotton, which scored Its advance last
autumn, It has been very marked in
cereals and in other agricultural pro
ducts, the benefit to the farmer be.
ing anywhere from Is to 20 per cent
at points Of shipment. One effect OF
this improved state Of things has
been the liquidation Of loans in nc
considerable degree among banks
which had previously had good
many Of their assets frozen" AL
though the upward movement fl
- A. A.x1