Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-04-30
RECOVERY IN BUSINESS
MARKED S|NCED FEB. |
Building Boom Is in a Large
Measure Responsible
for Advance.
HhEi'hT RATES ARE TOO HIGH
o'ntemehts OF Hallway Earnings for
Mhrch Now Coming Forward Re-
meet tho Improvement in Industrial
Conditions.
FnEIGHT RATES AnE TOO HIGH
ny Walter IL. Brown.
by United Eewe.l

NEW YORK. April 2o.--After four
"cehs or continuous heavy trading,
"here sales have been moro than IL
miilion shares day, most of the
'ime more than million and Il hall
ana once more than two million, there
must. In the nature of things be n
reaction from the technical stand
point. Within the past week that
tendency has been manifest. but IL
speaks we'll for tho market, that such
declines az have occurred have been
orderly and. In fact. have been sharp
- contested. The undcrtone Is still
E,rons. business Improvement is still
gong forward and the reaction in
stocks is merely the desire 10 turn
paper profits into cash. II does not
follow that the upward movement has
como TO an end. That would i'm
ply an alteration in fundamental con
ditlons. and there has been none
Within the last three months the
recovery In business has been all that
could be asked for. II was not 70
DC expected that business could snap
pack into position Hs quickly az Il
cropped AS matter OF fact II IL
further advanced than was ant!clpat-
"a at the beginning of tho year
building Boom.
The building boom is in large
measure responsible. but that In turn
was made possible by ;he availability
OF capital Halted demand for food
anu ci"thinG cannot he made up, but
deferred construction work has to be
taken in hand sooner or later
hearing In mind that the normal
additions To housing facilities were
not made during the war period but
that the need for them has gone on
1uSt the same. Il has meant tina, a,
the first opportunity this need would
a.
cy have been one OF the principal
dcterrents, as we'll as the high costs
or building materials. While there
has been some decline In the lat
ter. IT waB not the controlling factor
so much az tho ability to finance.
throughout the country Is progress
ing fairly we'll. This Is reflected In
the decline in the rediscounts OF the
Federal Reserve system Of $5c0o0.0Q0
for tho week. The total rediscounts
outstanding at this time amount to
since october. 1917. and compares
with f1.l7s.to0.oo0 ut the beginning
Of The year and {2.o63. 100000 "a year
nEo.
Statements OF railway earnings for
the month Of March. now coming for
ward. reflect the Improvement In In
dustrial conditions in Increased revc-
: necessity for decrease in passcn-
ger rates. the revenue from that
source having fallen off materially
point worth noting liz that In
crchses In net revenues are in con
siderable measure due 10 deferred
maintenance, but IL ia also OF i'm
portancc that considerable saving Is
shown in greater efficiency OF opera
ton. Further reductions In freight
rates are likely TO he ordered by the
Interatate Commerce Commission
shortly. These will probably affect
coal! coke and iron ore. iron in
cruder shapes and building material
such as brick. stone and structural
steel.
Reductions in freight rates on
manufactured products are also need
ed. but these cannot be obtained "
,at once. for II would be placing the
burden entirely upon the railways.
whereas the roads themselves are en-
Titled to some consideration In the
matter Of production costs. This
brings UP the question OF the coal
strike and tho necessity for some
basis OF settlement that will bring
lower prices for the consumer. Of
which the transportation system of
the country is tho largest. Cheaper
fuel costs Will affect the costs OF nll
material and supplies the railroads
need, and make Il possible for them
10 exist with lower freight rates
So far as the coal strike Itself is
concerned II is st!il question OF
both sides playing for position. AS
Il matter of fact. the miners have lost
already. unless they can secure some
sort OF government Intervention, and
government Intervention. therefore,
can do nothing more than settle the
trouble temporarily, These basic
questions Will have % be settled per-
manently at some future time II they
are not disposed OF now.