The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-02-05
DEBT SETTLEMENT
BRINGS RECOVERY
To MONEY MARKET
Domestic Business Continues
Satisfactory Railroad Car
Loadings Greatest in
History

NEW YORK, Feb. ASSOCIATED
Press with industrial develop
ments still favorable, the financial
markets were encouraged by the
turn of events in the foreign situa-
ton toward the close of the past
week.
During the first few days the for
eign exchanges showed acute weak
ness. French francs suffered par
ticularly, and financiers in foreign
centers displayed anxiety over the
crisis in the Ruhr, the French note
to Turkey and the possibility that
the British cabinet would not accept
the American debt funding terms.
Announcement of the British accept
ance, however, brought an abrupt
change of sentiment, and resulted in
a sharp rally in the exchanges, and
il. foreign bonds.
Testimony as to the satisfactory
character of domestic business con-
tinues to be convincing. Railroad
car loadings still are running ahead
of all previous records for this sea-
son of the yer, and reports by IN
dividual carriers on January traffic
show substantial gains over January
1922.
Operations in the steel industry
also are at high rate.
Factories in the Pittsburg district
In of OIL
of capacity and steel corporations
plants are doing even better. With
the markets well booked up, and the
demand insistent, prices continue
firm.
Reports: from other Industrial
quarters, indicate general improve
ment in profit-making ability and
these reports probably have had
restraining influence on bearish OPP
orators in stock.
Observers also are encouraged by
the December earning statements Of
the railroads. While the complete
list of reports has not appeared yet
a sufficient number have been pub
lished to insure a distinct improve
ment over the showing of the previ-
GUS December. So far, net income
has proved to be about double that
/ roads as whole earned "a per
cent on valuation. 1t is expected
that the complete returns win show
a figure in excess of five per cent.
The cotton market has been the
scene of exciting fluctuations in
prices. While somewhat influenced
by the foreign situation, the move
ment appears to be a natural sequel
to the long and large advance which
already had taken place. Heavy
profit taking and much switching
about of position among profession
ais appeared to lie at the bottom of
the weeks reactions and rallies.
Wheat Quiet
Trading inS wheat remained quiet
with prices showing little life be-
cause of the absence Of foreign de-
mand
In the financial district, opinion
was unanimous with respect to the
constructive aspects of the British
debt agreement.
l was felt that the arrangement
constituted the first step in restor-
ing order in international finance.
Some surprise was occasioned by
the fact that the steel corporations
net earnings during the last quar-
ter failed to cover dividend require
ments by about the same amount
as in the preceding quarter. 1t was
pointed out, however, that the cor
poration filled considered orders
during the last few months of the
year which had been placed before
production costs were raised by the
strikes and the September increase
in wages and when prices naturally
were lower. This is considered a
logical result of the corporations
policy of stablilizing prices. Earn
ings are now stated to be better
and results during the first quarter
of this year are expected to be sat
isfactory.