The Washington times., 1922-06-11
Weekly Financial ReDielD
y, By HENRY CLEws,
of Henry CleWx @ Co.. New York Bankers.

In the cotton States, agricultural
prospects are unusually favorable.
This fact, IN order TO be fully un-
derstood. should be coupled with the
circumstance that prices for both
wheat and cotton have been % well
maintained during recent weeks.
thus giving promise OF q very eub-
stantial return to the farmer during
the coming season. Export demand
has improved lately in both ficlds.
and promises TO increase stin fur
ther. The apparent ability Of the
market to absorb large quantities OF
foreign securities promises q much
better basis for the financing OF
shipments to other countries than
has yet been afforded. While banks
are still exercising q very decided
degree OF caution In dealing with
proposed consignments to European
and South American buyers. there
has been a steady Increase In the
amount of their advances covering
shipment to these parts Of the world.
The export trade is likely to be ma
teriaily helped by reductions In cost
OF production, dut to the establish
ment Of new standards OF wages I'm
other lines OF business, where high
expenses have. during the past year
or more, placed US at q serious tis-
advantage as compared with COM
petitors abroad. E.
The strength OF the Federal re-
serve system continues practically
unabated as indicated by 4 ratio for
the current week Of 77.6 per cent,
and with no Increase in the demand
for accommodation. Steady liquida-
ton Of loans In the interior has Fro
vided the country banks with the
means they needed in order to meet
the new requirements OF the crop
season now opening. while the in
crease Of savings has also tended to
enable the banks to avoid heavier
rediscounts, The prospective action
of the, New York clearing house
banks In arranging to cut the rate
OF interest on deposits bears testi-
mony to the confidence felt by these
institutions In continued low rates
for money. However. these expec-
tations may turn out, there II no
reason to expect for the coming sea-
son anything except an entirely ade-'
quate and sufficient supply Of credit
not only for production, but also for
investment uses. The announcement
that the Treasury Department win
put out block OF three and one-half-
year notes bearing ~ per cent inter
est In exchange for outstanding Vic
tory ms, tells its own story of
present money conditions and those
expected in the future.
: Market Review and Outlook.
with the various elements Of tenn
porary doubt as to conditions. includ-
ing the terms Of the proposed
mergers in various ind Istrial fields,
the pending bonus and other lesisla.
ton at Washington, and the still tin-
settled prospects regarding financial
relations with Europe. II is not un-
natural that the market during the
past week should have displayed
some irreguiarity In prices. After
so prolonged an advance al, has re-
Gently occurred, short period Of
rest or hesitation can do no harm.
With the exception Of some stocks
wh.ch have possibly advanced TO
levels higher than they can perms-
nentS maintain. there is nothing to
Indicate any important retrcgrade
movement. Would-be buyers are In
clined TO hold off for the moment.
but owners OF stocks display no a1x.
iety 70 get rid OF them. AMI this nc
counts for the present Inactivity. The
strike question has assumed such
large dimensions In connection with
the railroads and coal mines Y nasur-
ally has q militating Influence on
the market, even though n does net
cause any lfpuidation Of consequences.
With underlying conditions as good
a. they are. and money offered In
abundance, there " no rood reason,
Of course. why holders should wish
20 sell. outside of the fsrt that the
upward movement has been one con
tinuous performances Cor snch q pso.
lonsed period. The eutiook. there
fore. n Sun enccurariox.