The Washington times., 1922-07-10
BUSINESS AND FINANCE
] MARKET COMMENT
By w. s. COUSINS.

Copyright. 1922, by Cosmopolitan News
Serv!ce.)
NEW YORK. July 1o.-Evidences
have been multiplying during the
hast few weeks OF an impending
debacle inside of Germany, the re-
suits OF which will not, however. be
confined to that country. More
than ever, the progress and prosper
ity of the world are tied up with the
rate of progress In the rehabilitation
Of the sick" countries OF Europe.
Too much stress. however, should
not be laid upon the appearances Of
things as indicated by the fluctua-
tions Of the market, for II can he
said without question that Germany
currency has been pretty largely
doctorsd by auack economists and
spectators. The whole matter. of
course, goes back to Versailles and
the reparations settlement which, by
the way, was not a settlement, and
which prominent financiers on both
sides of the water and trying to re-
duce to a settlement. When this is
done, conditions should improve.
Today's European. cables bring
fairly reassuring statements Of
economical and financial conditions
in England and France: this despite
the gradual decline OF the French
franc, which is largely due to the
realizat ton Of delay In the future
payments on account Of reparations,
There In little or no interest in The
Hague conference and the unsettled
conditions are conducive to specula.
tions on a larger scale. French,
Belgian and Italian currencies have
been collapsing with the mark,
while sterling has been holding stead
lily Gilt edged securities have declin-
ed on the London Stock exchange but
there Is no indication of anything ap-
preaching panic conditions. The Lon.
don markets are closely following the
progress OF the American cotton
crop, realizing that any shortage in
raw materials will seriously affect
their home cotton industry.
The principal developments in the
domestic business and economic stu
ations since the markets close on
Saturday noon have been in connec.
ton with the progress OF the strikes
in two important Industries. On the
whole, these developments have not
been very favorable, as. unfortunate.
ly, violence has been in evidence
along some Of the railroad lines. An
important test will come today, with
the expiration Of the time limit for
the shopmen and the announced in
tention OF the roads to operate the
repair shops on the open.shop basis.
The nervousness of the specula tive
and futures markets today reflect
| this situation.
For the first time in over a year.
the British government has resumed
shipments Of gold to private Ameri-
can consignees, and the current week
will see about f5,000.000 In British
gold shipped to us. This is doubtless
in preparation for a payment on the
interest account of the British war
debt TO the United States on October
/. The total amount OF accrued in
terest is S125, ,000, 900, but It is not e<
pected the whole amount will be paid
In gold. This suggests the necessity
Of the British government acquiring
an additional supply Of dollar ex-
change in this market during the
next two or three months.
Complete reports Just filed by the
carriers with the Interstate Com
merce Commission show that the
railroads in the United States in May
had a net operating income of $61,-
$50 500. which, on an annual basis,
represented a return of 4.36 per cent
on their tentative valuation. In May
last year their net operating income
amounted to sac, ,943,24S, or at the an
nual rate Of return of $50 per cent,
while in April this year II was $780,
271 ,S65, or 3.93 per cent.