Evening star., 1923-04-29
TWO BIG PROBLEMS
PUZZLE LEF|NANC|ERS
Attitude of Congress Toward
Railroads and Foreign De-
veIopments Awaited.
ABUNDANCE OF CREDIT
Fewer Price Advances-Banks in
Strong Position-Trading in
Stocks at Low Ebb.
ABUNDANCE OF CREDIT
BY GEOGE II. HUGHES.

Special Dispatch TO The Star
NEW YORK. April 2S-Any at
tempt intelligently to forecast today
the financial and commercial future
meets at the outset two problems.
both political in nature
The first is, what is to be the
attitude of the American government
and the American people toward re-
obstruction in Europe, and the second
is, what is to be tine attitude of Con-
gress and of the labor and agri-
cultural interests toward the rail
ways. These two problems are
fundamental
action follows trade activity and
revival follows reaction. And the
factors affecting each may be weighed
with more or less precision, but there
Is no way OF forecasting the solution
or II political problem. Perhaps that
Is not quite accurate. In the long
run, history shows the American.
people have always found the cor
rect answer to political questions
when once fairly and adequately pre-
sented. 1t is still true, however.
that these matters do not lend them
selves to exact analysis as do purely
economic propositions.
Foreign Outlook Brighter.
Now as to affairs abroad the
weeks developments have been dis
linctly encouraging. There is every
sign that the responsible leaders
realize that prosperity in this country
depends in measure at least on
stabiilty abroad and that foreign
markets for our surplus cotton and
wheat are vitally important.
AS to the methods of co-opersttor
with Europe, there is still, of course
Niolent disagreement, but this is not
Ine place to discuss merits of the
1t is sufficient to point out that
more and more interest is being
SHOWN In the European situation and
that the pessimistic view as 10 the
outlook is no longer predominant.
me remarkable advance in the
market for foreign bonds this wenl
test1fies to this fact.
Rail Issues Still Lag.
1t would be gratifying to be able
to say that progress similar to that
made abroad is being shown with re-
gard TO the railways, but such is pnI
the case: Here, too. the Judgment of
lne market may be accepted as rea-
sonaely accurate. Those whose busi-
ness 1t is to advise on speculatior
point out that railway stocks have
not had the advance enjoyed by utili-
t1es and 1ndustrials in the bull mar
ket OF the past year and a half. They
fNiSiAoSt vi IdllNdN SndTeS :
likely to be more profitable at this
stage than similar commitment il,
industrial. All the statistical eyi.
dence is on their side
Car loadlngS are at new records To-.
TINS time of year and not far below
the best for any time of year Earn
| ing statements for March show graft
Tying gains over year ago
But railroad stocks drag along a.
their previous level and railroad
! bonds are even more dormant What
is the reason? The only answer can
be concern over the political outlook
The general financial situation re
mains much as last week If busi-
| ness expansion proceeds at a reck-
less pace, it will not be for lack Of
! adequate warning. Henry Ford ha
joined those who have been advi..
ing caution.
Plenty of Credit Available.
Meanwhile. with the exception %.
wool and sugar. prices do not seen
inclined to advance. The case OF
sugar is the more notable because of
the extraordinary means adopted by
the government to force a decline
The banking position is just as
strong as ever. Credit is still avail
| able for all legitimate needs
Speculation in stocks is at low
ebb and not excessive even in com
modities. The labor shortage about
which SO much has been heard -
at least no worse.
Copyright. 1921