Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-08
Near East News Has
Disturbing Effect on
Markets of Country
(By Wells DIckey Company

The foreign situation was the focus
of attention last week, it being evident
from the very outset that a crisis was
developing in the Near East which
might at any time flare into war. The
invasion of the neutral zone by the
Turkish forces. the ultimatum of Eng
land to the Turks and the abdlcatlon
of the Greek king, together with other
events, linked up closely with these
developments, could not be overlooked
as happenings of the greatest m
bonds and stocks, broke sharply under
the news but reacted quickly as the
clouds began to clear away.
The critical situation in Asia Minor
even in face of the negotiations aim
ing toward peace were held as Of
greatest Importance during the week
and were the principal disturbing ele-
ments in the business situation. While
the beginning of a peace conference
at Mudania which promises well for
the immediate future in the Near East
is having a strong effect or markets
generally, both bonds and stocks be-
ing decidedly on the upgrade 1t Will
be a week or two. however, before the
foreign situation is sufficiently cleared
that business in this country can pro,
ceed unhampered. 1t is only. natural
that with storm clouds lowering near
there should be heavy liquidation in all
speculative purchases, a liquldation
which of itself is a decided retardmg
factor.
Manufacturing Improves
So far as conditions in the United
States are concerned there are no
clouds on the business horizon. The
demand for manufactured goods is heavy
in all quarters. Manufacturing is go
ing on with increasing rapidity and
the entire outlook viewed from the
American and not from the world po-
sition is favorable, although we still
have several unfavorable factors such
as the shortage of cars and q possible
shortage of coal.
The steel industry, which is always a
fair barometer of general conditions.
is operating at about 80 per cent of
capacity, many of the independents
actually being in better operating 20
sition than the L. S. Steel corpora
is in a favorable position. Demand
for cars continues undated, while
recent price reductions by numerous
manufacturers are proving an added
stimulus. The steady rise in commo-
dity prices has been n of the note
worthy developments of the last few
months. There has been some discus
sion as to whether or not this upturn
and the resulting expansion of credit
might not lead to another period OF
initiation. AS a matter of fact, ex-
pansion of credit has been so slight as
to be practically nil and the price in
dexes show that the rise in commodity
values in most lines has not been as
much as many have been led to believe.
Bankers Convention
The convention of the American
Bankers association in session during
the past week in New York city re-
fleets again the feeling of confidence
which is slowly permeating business in
all its branches. Financial leaders
are practically agreed that the favor
able factors in the present business
situation far out-balance the unfayor-
able and that America is in for con-
tinued prosperity. One important sub
ject which is receiving a large share
of discussion at the convention is that
of branch banking. Economists from
other countries where the system is in
vogue, as well as leading ~financiers, in
the United States, have been express
ing their views freely, and there is a
wide divergence as to the merits or
dement's of the system. The principal
option comes from those opposed to
large units of capital tending in a meas
ure toward a monopoly of financial re-
sources. The action Of the convention
on this question is being watched with
great interest and viii determine to a
fair extent legislation on the subject