The Washington times., 1922-11-05
Weekly Financial Review
BY HENRY CLEWs,
OF Henry Clews Co., New York Bankers.

reasonably cheap when one consid-
erS the Improvement in business
which has occurred. Most observers
are OF the opinion that trade expan.
sion will continue for consider
able time longer. 1t remains true
that election uncertainties still over
hang the market, but these will be
disposed OF now within short time.
In all probability the election results
will generally be of conservative
nature. tending to maintain the
present general management OF al
fairs and with little danger OF a
radical control of any branch Of
Government. The stock market Will
unquestionably profit from the more
solid basis that will be furnished by
the closing of the political campaign
which is usually "A time Of disturb
ance in values. Meanwhile corpora
ton reports have on the whole been
favorable. Some OF the oil COM
panies have shown unprecedentedly
good earnings while the quarters re-
port of United States Steel, although
not so good as some had predicted,
was unusually satisfactory, remem-
bering the fact that the industry
has had to struggle with a very
ire
Of the time. Failure on the part OF
some concerns like Studebaker to
declare extra dividends with which
kindly forecasters had endowed them
should have no effect on the situa-
ton one way or the other.
Railroads As An Index Of Business.
The improving conditions on the
railroads may be taken as salts.
factory index of business, and judged
in that light are more than encour'
aging. There has been unusual ac'
tivity in the movement OF freight,
as already noted. Earnings reports
are showing up distinctly better and
us a result the dividend paying
stocks have held their own decidedly
well. Further indication Of prog
ress in the movement toward con
solidation is afforded by news from
Washington. and there is belief that
such consultations as occur would
probably bring about a recapitaliza
ion that would be beneficial to
stockholders. As often remarked
the total volume of railroad stocks
that has been placed on the market
Of recent years Is small and In con
sequence there Is larger absorp
1--WE pOWtt VII tilt Ddil VI iiiV Noih
munity than would otherwise exist
"A fact which Is we'll illustrated by
the support which comes to most OF
the standard shares whenever re
cessions occur.
Money and Crop Moving.
The so.called crop moving season
Is now practically at it's height
and there has been considerable
calling of funds by country banks
who have gone out Of the call mar
ket. This accounts for the higher
rates of interest now charged. II
remains true that the intensity OF
crop moving demand Is less this
year than for several seasons past
and that there will undoubtedly bs
an earlier return movement OF
funds to the market. Meantime
the continued great strength of the
Federal reserve system with a ratio
this week of 76 per cent in spite
Of an increase in commercial loans
OF S120,000,0 900 for the week gives
full assurance of all necessary ac
commodation for every ligitimat,
investment and commercial purpose
The uncertainty OF exchange or
foreign countries is an unfavorabl,
| factor which grows out Of disturb
ed political conditions in large
measure, hut which would he great
ly relieved n tho reparations dis
cussions now In progress SHOULD
bring about n satisfactory solution
Of pending problems. even from .
temporary standpoint.
.Nt v.l