davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-07-16
Special Foreign Financial Correspondence

Special Foreign Financial Correspondence
ROME, June 23-The Italian govern
ment, preoccupied by the ever increas-
ing curtailment in the sulphur mines
in Sicily and the consequent unemploy-
ment, has deemed it advisable to come
to the assistance of this industry, Civ
ing it's guarantee to loan up to 100,-
600 900 lire. SO as to enable the indus
trial association to purchase, at $40
lire per ton, the unsold raw sulphur
in various parts of Sicily, estimated at
273,000 tons.
Sulphur production in Sicily has de-
creased from an average of 0,000
tons in 1906 to 100000 tons in the last
few years. The total exports in 1913
amounted to $4,000 tons; in 1920 it
decreased to $4,000 tons, while for the
same period American exports in
creased from $4,000 to 485,00O tons.
Even with the reduction in prices,
the rate Of exchange and the high
prices of freights do not compensate
for the higher original price of our
sulphur as compared to American sui
phur. Should the existing stocks be
sold by the association at a price al
most similar to the purchase price, and
should the sales for the period 1922
1880 reach 100000 tons per year. then
it is estimated that the financial bur-
den on the government VIII not De very
heavy. But it is evident that the gen
eral crisis in this industry can only
be overcome by improving the techni-
cal methods of production so as to re-
duce costs and also by concluding a
sales agreement with American pro-
ducers.
A good sign of the re-establishment
of commercial and financial relations
between italy and America is the open
ing of the Milan agency of the Banca
d'America g dItalia (agency of the
Bank of Italy, of San Francisco), with
capital of 50,ooo,ooO lire and with
| 220,000,000 lire deposits.
NJ. Albertini, director of the "Corri-
ere della Sera,' the most influential
newspaper in respect to Italian public
opinion, and who was member of the
Italian delegation at the Washington
Conference, delivered most important
speech in the Senate regarding the
question of external debts, specially
with the United States. The external
debt, which did not exist before the
war, amounts now to about $1,000, ,000.-
| 900 gold lire, and, If we estimate this
! amount at the current rate of ex-
change. thu figures would probably be
New-York tribune., 1922-07-16

securities confidence enough to return
to his past habits of investment.
The 1922 model July market has AL
ready persisted beyond the point where
the reinvestment demand might nor
maily be expected to continue effective.
The endeavor TO determine its basis
must go deeper than that. and amplih-
cation of the explanation is not lacking
in the theories that have been ad-
vanced in various quarters Of the street,
One condition bearing on the Htua-
ton that to the layman might seem
negligible is that so far this has been q
cool July. Putting it up to the weather
may appear a triae far-fetched, but
canvass Of bond houses indicates that
this has been a highly important ele-
ment in swelling the sales of bonds.
There has not been the same general
migration from town as in other years,
the persons who buy bonds are &C
cessible and they are more disposed to
meet and be convinced by statesmen
than if they were sweltering in the
heat. The weather has helped also TO
maintain the efficiency of distributing
organizations; the usual summer let
down has been deferred.
The testimony of the chief executive
of leading Wall Street institution is
significant in this regard. A savings
department is operated by this particu-
lar bank
New-York tribune., 1922-07-16
Argentine Potato Industry
DeyeIoping on Large Scale

WASHINGTON, July 15.-Argentina
has good prospects of becoming one of
the worlds surplus potato countries
according to report to the Commerce
Department to-day from Trade Com
missioner Brady at Buenos Aires.
The Argentine potato industry, he
said has developed on a large scale
since the war and there 10 now a
strong effort apparent to export ex-
tensively. The two English-owned
railroads of the country. he reported,
have recently made mutual agree
ment to import selected seed potatoes
from England and the United States
for distribution throughout the three
potato districts of Argentina. While
the system of land rentals and poor
seed selection have been deterrent to
the industry, he declared, it is esti-
mated that Argentina this year will
produce over 80o,ooo,o0o pounds of
potatoes.
New-York tribune., 1922-07-16
Along The Highways Of Finance

rH'HE old order Of thrift is reversed
in countries who's currencies are
somersaulting toward worthlessness.
Instead of finding the way to wise
living in saving, which means deferring
present pleasures for future opportu-
mites for happiness or thereabouts,
the German, Austrian and Russian
must spend money with prodigious
celebrity before it's purchasing power
shrinks further The flight from the
mark into pianos, real estate, cans of
beans and clothing has for many
months been chronicled in newspaper
cables and in magazine effusons.
Now the producer of merchandise
intended for foreign sales finds suffi-
cient stability to keep going while
standing in the shifting sands of in
flation, intensified to the nth degree, Is
another interesting aspect of the pres
ent German opera bouffe economies.
Teuton manufacturers protest them
selves against further depreciation of
the mark by going long of commodi-
ties and short of currency. Having
their cotton, oils and other raw mate
rails on hand, they are able to make
contracts for sales with the assur-
ance that the only variable factor will
be the labor cost which will rise more
or less roughly with the fall of the
mark This procedure makes it pos
sible to carry on trade at time when
otherwise the element of uncertainty
would be overwhelming.
And yet the value of the cheap mark
as a stimulant to Teuton foreign, trade
has been overemphasized. A widely
fuctuating currency is not an asset,
but a serious liability. 1t is terrify-
ing influence making for instability,
which converts ordinary business into
gamble The business reflex of the
tumble of the Teuton unit of currency
from cents to .1Sh of cent in three
years has been an infinite number Of
irritating disputes rs to terms of con-
tracts between foreign buyers and Teu-
ton sellers. At the time of settlement,
New-York tribune., 1922-07-16
" Gather and Banking

"If l should be isolated in a darks
cell" he says, at would be possible for
me to tell the character of the weather
on the preceding day by the record Of
business handled by this department.
When the weather is fair and cool the
volume of deposits and transactions is
heavy. When it is hot or otherwise
unfavorable there Is notable slump.
A similar condition unquestionably eX-
lists in investment banking"
Internal considerations have corr
tributed much to the present strength
of the market. There has been little
pressure from new offerings, which
have been running during recent weeks
at not more than $4,000 900 or Se0,-
100000 on the average. This aggre-
gate has included few large issues and
much of the financing has been for re-
funding purposes, requiring little new
money. During the weeks prior to
July ! the market had been going
through a cleaning up process inci-
dent to the development of slight indi-
been working at high speed to dispose
of remnants of issues that had been
clogging the machinery and. with
money rates tending downward had
been fairly successful in this effort.
The factor Of bank and trust COM
pany buying has exerted an influence
that also must be reckoned with. De-
mand for credit accommodations has
continued light, and there has been,
except for occasional strains due to
special causes. plethora of funds in
the banking institutions of the coun-
try. Employment for these has in
volved their diversion into the more
liquid and readily salable securities
obtainable in the bond market. Saw
ngs bank purchases, as usual, also
have been seasonally more extensive
following the July settlement.
No indication has yet appeared OF
any tapering off of the July market,
and many bankers are staying in the
city to groom offerings in the fear that
by postponement of these operations
they might miss an exceptionally IA
vorable opportunity for floating the
issues on their schedule. This last week
a $25,O00,000 railroad issue was four
times subscribed and a 50,00o,o90- guild
er Dutch loan. more than taken, in the
face of disquieting railroad and for-
eign news. 1t is no wonder that
banker whose vacation started official
ly last Thursday, but who was at his
desk yesterday, looks forward to hav-
ing only his Sunday afternoons away
from the job during this period.
New-York tribune., 1922-07-16

understand why such a policy is pur-
sued. 1t is not simply question of
economic illitetacy Frank A. Wander
lip, in his new book on Europe, points
out that the leading statesmen of all
countries are aware of the economic
consequences of imitation. And yet
they seem to be caught in a spiral
staircase of forces which drives them
onward, fearful of the riots, hunger
and collapse which might follow a
stoppage of the presses. They prefer
to postpone the day of reckoning. The
exchange market is a barometer re-
fiecting abnormal conditions, rather
than a cause of the disruption. And
to a degree imitation of the currency,
instead of first cause, is reflection
of the unloosening of forces of disrup-
tion by the war and the unsettlement
which came with the peace.
New-York tribune., 1922-07-16
Compressed Billions

The tragic comedy of printing press
finance is creating in its wake a new
folklore. One of the latest tales which
is current in the financial district is
the means by which the delegations to
the recent Genoa economic conference
paid their expenses. ENJOYS from
Czecho-Slovakia, according to the
fictionist, brought in ten trunks cur
rency to defray their expenses Those
from Germany were followed by a train
which advanced funds for the Russians
the Bolshevik representatives handed a
small package. Some amazement was
expressed, since several trainloads of
rubles were expected. A spokesman
for the Russians cleared up the con-
fusion by remarking, an this paper is
an engraving plate; make as many
rubles as you wish"
Several years ago, when predictions
first began to be made that the Soviet
government would collapse next week,
Professor Emory, distinguished
American economist, was travelling in
Russia, and the story is related that a
member of the Finance Ministry ad-
dressed him as follows: Professor
Emory. you are a financial expert.
Can you help US solve this problem ?
Our daily expenditures are 100,000,000
rubles, and each day we have deficit
of 20,000,000 rubles, for our printing
press capacity is limited to 10000 ,o0O.'
New-York tribune., 1922-07-16
High Coffee Prices Bring
Costa Rica Prosperity Wav,

WASHINGTON, July 15.-Coffee is
responsible for the wave of prosperity
now sweeping Costa Rica, the Com
merce Department was informed to-
day by Consul Waterman at San Jose.
High London offers, he reported, have
practically wiped out all of the last
crop left in the country and have so
affected the distribution of the coffee
that considerable amounts already
shipped to New York have been di-
verted TO the English port.
The present crop, he added, has
Powered, the grain has taken hold,
and with reports being received from
Brazil of poor prospects for the next
crop in that country, growers are an
ticipatng high prices and continued
prosperity"
New-York tribune., 1922-07-16
The Changing Character
Of the July Bond Market
Demand This Year Best Since Pre-Wa,.
Days Despite Diminishing Re-
investment Factor

AGERNESS of Individual
TO purchase securities Of fixed during
provided the
enced Their
moae strongest forward
the extraordinary rise early the the
the market far exceeding anything
executives banking
the market vii! exhaust
New-York tribune., 1922-07-16

gins to dispatch gold-carrying feet to
American shores laden with funds to
be used toward meeting an interest
payment of s125 100000 on it's debt to
the United States government. which
had been deferred for three years
None Of the other debtors has indi-
Gated a readiness to begin payments
although France has commissioned
Jean V. Parmentier, who is now in
Washington, to come here to explain
the French position. The attitude of
Britain reveals in laboratory form why
bonds and other evidences of debt vary
enormously in value, even though their
nominal or face worth is identical.
Even the most lteral-minded would
agree that the present realizable worth
of the American Treasury's notes from
Britain are more desirable than those
OptdlHeu from t0e herenSky regime in
Russia
Nations, like individuals, often fail
to realize that by their actions they
are establishing their reputation, which
conditions their credit standing and
even so practical matter as the rate
of interest they have to pay for a
loan. England has always had ira
dition of prompt payment of debts.
This practice has for centuries given
London primacy as q world financial
center, for foreigners were always
ready to keep surplus balances there,
confident that on demand they could
always withdraw gold or its equivalent.
England's economic Importance reflects
not great material wealth, but enor-
nous psychological resources.
AS mercury registers tho fact that
midsummer is here several of Wall
Streets bankers, who deny themselves
regular vacations, may be expected to
take of week ends, beginning on Tues
day and ending or the following Mon
day morning.
New-York tribune., 1922-07-16
Situation in Cottots

manufacturing furrier, complain
ing of the present price of raw skins
which, in his mind appeared to be
slowly forcing him to raise his own
prices, at the same time asserted that
one of his smaller competitors is
underselling him continually. 81 know
what our costs are" he said. "and
also know that his overhead, compared
to his volume is fully as great as my
overhead compared to my volume The
New-York tribune., 1922-07-16
Stability, Apparently With.
in Grasp Only Few
Months Ago, Again
Has Become an Illusion
Whole Trade Unsettled
Big Jump Would Be Neces-
sary 10 Put Finished
Goods on Paying Basis
b. Harry r. Baker

RASG SCaDlllCy, winch seemed
to be within the grasp of busi-
ness men only a few months
ago, again has become illusory.
1t was argued by manufacturers and
merchants alike that if prices could
only be established upon a basis
where little or no change would en-
sue, say for a season or so, the eco
nomlc situation would soon approach
what economists like to call "nor-
mall Hopes in that direction have
gone glimmering in the last few
months with substantial price in
creases in practically all the raw
materials that go into the makeup
OF goods in daily consumption. The
rise has been reflected to a less ex
tent in semi-manufactured goods
and to still smaller degree in fin
lshed products. The question of
whether the consumer can be forced
to pay higher prices for merchan
disc has now become one of the prin-
cipal worries of retailers, iobbers
and manufacturers.
The present situation in prices pre-
sent complex riddle to those who are
seeking line on future DEVELOPMENTS
In many lines there is a continued ad-
vance in raw materials, while finished
products are declining. 1t takes no
highly trained economist to deduce
from these facts that some one along
the line of manufacture and distribu-
ton is losing money, or at least is
not making anything like normal
profits
Of course, partial explanation for
this condition lies in the time element
necessary in manufacturing. The
longer the time consumed in the proc
ess of converting raw materials into
the hnlshed product the longer it will
take raw material advances to be re-
Hected IN hnlshed goods. For the last
year or so, however, all &actors in the
manufacture and distribution of mer-
chandise have been buying materials
and finished goods closer to the actual
time of consumption. The time ele-
ment, then, has not been of as great
Importance in holding back price ad-
vances from the consumer as would
ordinarily be the case.
In talking with men in various in
dustries and in different position along
the line of manufacture and distribu-
tlon one is forced to the conclusion
that those occupying positions near the
consumer are having the greatest diff
Guilty with prices.
New-York tribune., 1922-07-16
'Bet,Ueen the Devil.

Like all genuine fiction, these stories
contain substantial element of truth.
Within the last fortnight German
finances were disturbed by an engrav-
ers' strike, which tended momentarily
to check imitation.
Since the issue of currency without
regard to a nations ability to redeem
it inevitably leads to a. bursting Of
the bubble, it is difficult for many to
New-York tribune., 1922-07-16
Crop Condition Improved
I'm Western Corn Relt
Rains Come i'm Nick of Time; Ru;ld;,o
activity Gaining, Douglas :
Finds I'm SURVEY
BY Archer Wall Douss.,,

Ckaad Lofee on STATISTICS and Standards Chanta Of
Of the United States "
Thng returns SO far from all the states winter wheat
harvested are OF somewhat disappointing and tell Of
ureoual in fields close prox;m; " most
and otherwise some black rust and premature ripenn ha
exceeding hgn temperatures are Jointly responsible this state f
The high premise of 70 ~ g.,
Neither are the damage reports be taken
large discount mere VIII be plenty of wheat Also Of
unless 80
ru South Dakota actual existence f ~
pest
trouble with wheat ALWAYS s
heh condition the spring but with lame and + M
tconcIs
New-York tribune., 1922-07-16
Producers, Jobbers and Mer-
chants Fear Consumers
Will Object Strenuously
to Further Advances
Overproduction in Silk
Some Mill Operators Pre-
fer to Run at Loss
Rather Than Shut Down

they will have to be first brought up
to basis to correspond to the old
prices of raw materials, and then fur
ther advanced to the new raw material
level. This will make a fairly big
jump in some lines, and considerable
resistance will be encountered in ef-
fecting it. At the same time, there
are indications that this movement
will be begun in the fall
New-York tribune., 1922-07-16
Treasury Bill Redemption

WASHINGTON, July 15.--Federal
Reserve banks have been authorized
by Secretary Mellon to redeem in cash
at par and accrued interest before
August first, Treasury certificates of
Indebtedness dated August J., 1921,
maturing August 1, 1922.
New-York tribune., 1922-07-16
Born of Necessity

To-day, construction is born of that
lnescapable necessity for housing
created by dearth of building during
me war. It's principal relation to
,oetser times is found in the demand
" makes upon great lines of mining
ahd manufacturing industry for ma
'erlals for the work it has to do
Two things are notable in the gen.
efai business of distribution. First,
more liberal and comprehensive buy
ing OF assortments and a getting away
rom the hard times fashion of keeping
oniy the necessities of trade, the bread
ana cneese, and as few of the luxurics.
me cne Ice cream and cake, as possible.
uoVlously consumers started the mat
yer by asking for things they didn't
Aeed and could Just as well get along
N'shout and the dealers followed suit.
secondly, orders for fall and winter
.alufes are much larger than at this
.nne last year, when they mostly were
no'' obviously, the trades have
stopped Worrying about the future and
are gong back to their usual fore
landed methods of anticipating fu-
sere wants. Also the general volume
" business holds up we'll despite the
. ngar approach of the summer solsticc
mneh there usually ensues a brief
sssi,od s,,lod Of waiting and comparative
.,.i IN the appended condition map the
sbere sbo State of West Virginia nov.
sh sHo~s fair whereas two weeks ago.
a. sne area within the marked space was
, poof The change is due to i'm
Sseo AVA crop pros cts, corn. tobacco
MI; MI apples promising good yields.
lung conditions also have improved.
New-York tribune., 1922-07-16
By Merryle Stanley Rukeyse,

purchasers of German goods of late
have complained of endless quibbling
as to private adjustments.
New-York tribune., 1922-07-16
A Nations $ Credit

While Germany asks leniency from
her creditors the British Treasury be-
New-York tribune., 1922-07-16
Season Improbable

While the textile people have been
selling their products more cheaply
than the cost Of raw materials would
indicate, another branch of trade which
is large user of textiles also has
been doing the same thing. This is
the women's clothing trade. With cot
tons, woolens and silks as their raw
materials manufacturers of women's
apparel, after casting up their bal
ances for the first six months of this
year, find that, except in rare in
stances, the season has been far from
profitable. At the very time when raw
cotton was making its spectacular
rises this spring, cotton dresses
showed a steady decline in price One
manufacturer reported that he had
seen cotton dresses in u retail store
priced at less than the cost of the
material in them. Silk dresses also
were selling around pre-war levels,
despite the fact that both raw silk
and finished silk goods were priced
much higher than in pre-war days
Labor in the apparel trades is still
higher proportionately than in most
other industries. Here again is evil
dence that much business was trans
acted on an Improbable basis.
New-York tribune., 1922-07-16
Prospect OF advances

In the wooden goods trade fall wool
ems were advanced three times between
January and June. These wooens are
going into clothing to be distribute d
to consumers next fall Although ges-
lures were made toward advancing fall
clothing prices, no actual price raises
have been recorded to date Cloak and
suit manufacturers are beginning to
worry about the situation, as few of
them are fully covered on their sea-
sons estimated requirements. They
say that price raises in cloth must be
reflected in clothing. The retailer and
the consumer appear to be in no mood
to stand further price advances.
One OF the hardships of advancing
prices to a profitable basis in many
lines now is that if finished goods are
to be placed on a profit-yieldin basi:
New-York tribune., 1922-07-16

Taxation dealt blow to the tradi-
tional reinvestment demand and there
is little reason to believe that it has
revived in its old form. Holdnga of
men of large means are now made up
principally of tax-exempt securities,
such as United States government.
state and municipal, and land bank
bonds, and these have never conformed
to the January and July interest
dates. Moreover, although the surtax
on incomes has been substantially re-
duced and other changes in the law
favora BILE to the investor adopted, the
situation has not yet been sufficiently
clarified by official rulings and inter
pretations to give the large buyer of
New-York tribune., 1922-07-16
FloiU More Continuous

The flow of funds into investment
securities is far more continuous than
formerly. The average size of subscrip-
tions or purchases has steadily fallen
off, as the American public, following
the Liberty Loan campaigns, has been
educated to putting its savings into
bonds. Whereas the leading bond or
CARNATIONS in disposing of issues used
to depend upon few clients, who,
periodically, as they accumulated d
amounts ranging from $4,000 to ST.
! 100000 or more, bought bonds. they
now sell to thousands who invest when
they have a few hundred or thousand
dollars. Inevitably, the old seasonal
fluctuations in demand have been
ironed out and the accentuation of
buying in January and July has de-
minished.
The business Of floating bonds be-
fore the war was handled pretty much
according to a fixed set of rules that
were observed not because they were
in any way essential to the placement
of investment securities, but because
! they amounted to custom. If bond
! issue was brought out in March OF
April, tor example. it was dated back
| to January l as a matter of course
! day, with the volume of offerings
running beyond anything that had been
visualized by the old-style investme ent
/ banker, the nearest convenient date is
1 selected, and the time of interest pay
ments is determined accordingly. The
latter are. therefore, pretty we'll dis
tributed throughout the year and do
not bulk so large on any particular
| dates