The Washington times., 1922-03-26
Weekly Financial Reviey
BY HENRY CLEWs
of Henry Clews & Co., New York Bankers.

NEW YORK. March 25.-The issu'
ing Of orders TO 6O0,0 900 coal miners
who are directed to go out on strike
at the close of the present month
has been expected for a good while
and yet it must be. Of course, a
shock to business and industry. The
securities market has shown a GER
tain effect OF 1t already, though 1t
has not suffered severely. There Is
some reason TO suppose that an early
compromise in the strike will be
reached. Excessive prices for coal
and the bad effect produced by such
prices upon consumers, however,
necessitate a definite decision on this
question as soon az possible. Bitumi-
nou coal, which represents the indus
trial side of the situation, Is now sold
at prices and under conditions which
make ii impossible for the operators
to continue paying present rates OF
wages. Post war adjustment has at
last reached the coal industry and is
as inevitable there as anywhere.
The Bonus and the Banks.
As was expected, the House of
Representatives has passed the bonus
bill with practically no debate. Presi.
dent Harding stands firm, 1t is un-
derstood, In his practical notice that
he will veto the measure should II
come to him in its present form. Ac-
ton on the part Of the House. there
fore. is 10 be regarded as represent
ing merely a political" step. and
. 20 x.yho haIi hat
lar action will be taken in the Sen
ate. Nevertheless, the fact that the
bill is now before the upper chamber
and that bonus advocates are con-
centrating their influence upon Sena-
tors TO coerce enough votes for the
passage Of their measure makes II
at least possible that the bill may
come to the President for decisive ac-
tion before the session closes. In the
form in which now adopted. the
bonus measure would unload the
burden of the undertaking
upon the banks. inasmuch as these
would be under the neces-
sity of discounting the paper brought
TO them by holders Of adjusted com.
certificates" 1t is this
phase of the scheme that causes most
OF the dangerous inflationary possi.
bilities which are contained in 1t
While the market has not shown
serious anxiety, believing as it does
in the Presidents superiority in the
the definite defeat of the
bonus bill would undoubtedly furnish
a very much needed support and
stimulus to present conditions. 1t
would be especially unfortunate 10
permit any such occurrence at this
ime when news from the West shows
such a material Improvement in
banking conditions due to the better
cereal prices. and to the larger facili.
ties supplied by the War Finance
Industrial Dividends and Earnings.
The improved volume Of produc
ton and the greater activity in many
plants Is at last leading to a sugRes
lion \hat suspended dividends NAV
be restored and that existing diyi.
lends may be raised. Incidentally.
Il is OF no little importance in view
of the Crucible and Northern Pacific
that so excellent
showing has been made by Bethle.
1em which reports $11.50 a share for
he past year. Reinsurance as to
he strong position Of existing diyi.
iend-payers Is quite as important as
'estoration OF dividends by those con.
,erns which have suspended them.
)ne OF the most marked increases
n manufacturing activity within re-
'ent weeks is afforded hy oa&aro, |