The Washington times., 1922-01-22
ADHssHs BUSINESS AND FINANCE ~A
Weekly Financial Reuie.U
BY HENRY CLEWS.
Of Henry Clews b 90, New York Bankers.

NEW YORK. Jan. 21.-Passage Of
the bill changing the composition OF
the Federal Reserve Board, prepare
ton for early action on the soldiers
bonus and the foreign debt funding
bill In substantially It's present form.
as well a. the apparent favor In
Congress Tor other measures which
WIN hardly help the financial situa-
tion and may seriously impair II.
tors during the past week. The
French political situation has. II any
thing. however. improved. and .
definite invitation to attend the &c
noa conference, has been sent to the
United States. Our action on the
invitation IL not Yet determined.
/ Improvement Of Railroad Prospects.
Domesticaiiy. the gradual improve
ment Of railroad prospects has been
an outstanding feature in the week
development as reflected In share
quotations. An agreement between
the railroad executives and the rep
resentatives Of employees whereby
pending differences of opinion will
be locally taken up for consideration
at unofficial conferences Is hopeful
as Tar as II goes. Further informs'
ton regarding conditions on the roads
themselves shows an Improvement In
the movement Of freights correspond
ing to the growing volume of busi-
ness. An increase in car loadings
from a month ago to the present
time Is an important element in the
situation. The earnings showing
continues to be inadequate. espe-
cially on those roads which have al.
ways found 1t difficult to pay divi.
dends even In times Of general rail.
road h,.t N
ably managed lines are now making
some very encouraging reports repre-
senting the business Of the latter
part Of 1921.
Automobile Situation.
More and moro, Of recent years.
there has been q tendency to regard
the condition of the automobile trade
a. symptomatic Of the general state
Of business. During the past few
months automobile stocks have SUI
fered seriously from the continuous
o nd general cuts an the price OF cars
which were necessitated on the part Of
various manufacturers by the com
petitiye policy Of others. A week or
70 ago the announcement that the
Fcrd Motor Company was to make
another reduction was received with
dismay, but the announcement that
this cut would amount only to q few
Collars per car. made during the past
week, Ii now accepted as indicating
that relative stability has about been
| reached. In spite Of the fears Of man.
ufacturers concerning what Is called
"saturation" of demand. the prospect
for 1922 now appears reasonably good.
Makers of some CT the more popular
cars have mapped out extensive pro-
ddction programs, and the good earn.
ings reported by Studebaker and
several others have led to distinct ad-
vances in the price Of stocks.
Steel and Business.
While there has been but little ad-
vantage as yet in the activity Of the
steel plants. industrial reports show
that the shortage in the supply of
available steel IL increasing. snd for
this reason . growth Of demand in
the near future Ia reasonably expected.
| The placing Of orders for railroad steel
has also begun In larger volume. A
good prospect for automobile construc-
ton necessarily means enlarged de-
r,and in that direction as well. Coupled
with the continued indications that a
o. eel merger which would take in the
| independent companies and will effect
| economies in cost of production Is
likely to be worked out. the facts OF
the situation give ground for con
fIdence, Notwithstanding unfavorablt
earnings statements for the last quar-
ter Of 1921. The belief that the stee
L