The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-03-12

NEW YORK. March ii.-F
dent Harding's decision not to seno
delegates to the conference Al
Genoa is undoubtedly dictated In
some measure by the unfriendly at
titude of the Senate toward the
washington arms conference trea-
ties. The current statement OF
Senator Lodge that the four-power
treaty il I'm danger and that, should
II be defeated. the work OF the
arms conference would go for noth.
ing illustrates the situation ana
shows why there 10 so much reluc-
lance to incur any more foreign
commitments to which We should
have trouble in gaining the support
Of Congress. These factors, taken
with the English political SITUATION
still unsettled as IL 10, sufficientiy
explain recent reactions in exchange
rates which, however, all things
considered, have been very mooer-
ate.
The fact that the soldiers bonus,
instead of being disposed OF. Is still
a serious menace. became evident
in the early part Of the past week.
when the Ways and Means Com
nittee determined upon q plan,
previously only rumored, WHEREBY
the proposed payments should %
made in Certificates" dtscountapie
at the banks, and, OF course, re-
discountable at Reserve banks Inc
Man has been denounced by Score
tary of the Treasury Mellon as the
worst form of the bonus yet pro
nosed. and such II undoubtedly In.
Dangerous initiation would neces-
sarily result from II. with the re-
sult that the soldier would probably
nav many times over In the form
Of higher prices what he received
in cash. The danger inherent In
such a scheme Is so great that fur-
Their comment is unnecessary. For
tunately. there 10 good reason for
believing that the measure VIII eth
err be defeated or be killed by the
Presidents veto.
Confidence In Industrials.
The market has shown a growing
confidence in the Industrial out
look, which Ia illustrated by the
fact that both steel production ana
steel shares show encouraging IN
crease in value, while the volume
m o,,tput in a number of other
lines IA distinctly increasing from
week. to week. Against this hopeful
trade situation, the continued dis
closure of unfavorable operating re-
s,,Its for the past year has only
iinoited Influence. The Midvale Steel
report. showing a deficit OF 3D..
400 600. and that OF the General
Motors Company, with a deficit OF
s3s. zoo. 900, reflect conditions wnicn
have already been well known, AND
stocks accordingly show the buoyant
effects of present business outlook
rather than the depressing effects
of mast losses. A like situation In
the sugar trade il seen In the gain
OF most of the Cuban issues In
value. as we'll as Of the domestic
refining shares. despite the Se,soo,-
600 deficit reported by American
Sugar for last year. New signs OF
announcement are now seen In tne
shoe and leather trade, while au-
thentic returns from the Western
States point to a fresh develop
nent of new building. which has
already put the volume of permits
issued more than 100 per cent above
the corresponding levels Of last year.
Utilities and the Gas Decision.
II has been only what was ex-
pected that the decision Of the Su-
preme Court in the Consolidated Gas
case should have exerted a powerful
Influence upon market sentiment, as
well as upon quotations. Pro
nounced increases in gas stocks
were, of course, looked for, and
realized. The sweeping character
Of the decision lies in Its establish.
ment Of the principle that the prop
erty Of public utility concerns Is en-
titled to a fair return of income.
This has naturally Influenced the
stocks of other utility enterprises,
and has resulted in a strong con-
dition not only Of gas shares, but
also, sympathetically, of fractions
and variety Of allied stocks. BY
releasing about s20,000.00o to Con.
solidated Gas and Its subsidiaries
the decision apparently renders divi-
dends on these issues secure.
Coupled with the fact that the Class
I railroads thus Ear reporting show
an Increase of about s94.0o0,0o0 In
net income over last year for jan
uary, the events of the past week
make a much more promising state
of things for the shares OF public
service concerns, from rails to trac-
lions and gas issues.
The weeks banking and financial
reports show continued strength, re.