The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-01-29
NEW YORK, Jan. %.

NEW YORK. Jan. 70.
Secretary MELONS statement in re-
ply to inquiries put to him by Con
gresham Fordney. In which ne re-
views the soldiers bonus proposal and
makes Il plain that the money re-
Quired must be raised by taxation.
has placed . very sharp .ssue before
the business community. According TO
Mr.. Mellon. the cost Of present bonus
plans will ultimately run from $4,000.
OOO, 900 to $5,2o0. 000. 900. and win be
likely to require a. large q sum as
81 900, 900 900 In cash during the first
two years, The Secretary's conserva-
tive statement that the field OF taxa.
ton IL already we'll covered and that
the department would hesitate to
recommend additional taxes calculated
to provide the money needed for the
bonus IL q very moderate way OF call
ing attention to the disastrous Imam
cial effects OF any such program a.
IL now contemplated.
Share In Genoa Conference.
President Harding has not yet an
nounced a decision n TO our repre-
sentation a. to the conference In
Genoa Premier Lloyd Georges ad.
dress at Westminster q week ago
OkIcL Cu pOoltlNC naNoS0Sy " sAso VIZ
ference as Q means Of rebuilding trade
and restoring exchange; and. while not
directly doing 20. nevertheless by in.
ference built up a strong argument
for the participation OF the United
States. Such participation appears to
be an admitted necessity II arrange
ments are to be effected for the finan-
cling OF exports and the stabiiizing OF
foreign exchange conditions. A. things
are now going. the absense or only
technical representation Of France and
the United States might result In
practically rendering the conference
Intellectual. Meanwhile, In the hope
Of the performance Of some thorough
work at Genoa. current quotations of
the principal European exchanges have
continued to reflect a distinctly better
condit on of affairs than has been true
for some time past.
Railroad Prospects.
Railroad prospects continue to be
the fundamental factor In the securi.
ties market in more ways than one.
The events of the past few weeks
have furnished fresh evidence that
the roads have great vitality, and with
even moderately favorable conditions
could make q good recovery. The DE-
cision of the United >s Labor
Board as to working rules Ia favorable
TO the roads, and there Is undoubtedly
a better prospect Of reaching some
agreement "out Of court" between
the managers and the employees than
has existed thus far. But Just a.
these more favorable conditions pre-
sent themselves. the demand Of the
agricultural interests for further cuts
In rates Is once more voiced through
the medium of the farm conference ut
Washington. There has been nothing
In recent developments that would
warrant such a reduction in rates I'M
less II could be accompanied by a
corresponding lowering Of cost OF pro-
duction.
industrial Conditions Improve
The interest shown by purchasers Of
steel shares during the past week. as
well as the activity and advance In
price noticeable In q number OF spe-
cialty issues, is attributable not merely
to the various rumors Of capital read
justments. mergers and the like, but to
real progress toward normal condi-
tions. For one thing, the reports which
are now being made public with re.
spect to the fourth quarter Of 1921 are
showing decidedly better results In
some cases than had been expected,
thus indicating that the turn for the
better, that has been 30 much talked
Of, In already several weeks under
way. Significant In this connection Is
the much improved outlook with re-
spect to sugar shares. growing AZ II
does directly out Of q better valuation
for raw and refined sugar. Both the
product itself and the stocks Of the
SUI gar companies have been driven
down too low. and the progress toward
higher prices during the past week or
two reflects a consciousness Of that
fact on the part Of the public at large.
A very similar situation exists in q
number OF other Industrial branches,
notably In leather and in the principal
leather stocks.
Money and Credit Sound.
The fact that our money and credit
situation In sounder than for q long
time past 10 being repeatedly demon.
strated. Statistics Of failures for 1921
now available show a surprisingly
small ratio of hank failures, particu-
larly for those In the national system
and in the Federal Reserve System
generally. High reserves at Federal
Reserve banks are no novelty, and
the past weeks figure of 77.2 per cent
for the reserve ratio Of the twelve In.
situations In In line with the figures Of
recent weeks. Experience as TO rates
has proven that a fair Weld Ia neces.
sary In order 10 keep out-of.town
money In the New York market, and
this fact tends to confirm the belief
A.