The Birmingham age-herald., 1923-04-02
r F|NANC|AL MARKET LITTLE EFFECTED
 BY BOARD MEETING
However, Banking Policy Is Being Generally Discussed.
 Business Goes Full Tilt

NEW YORK, April 1.-(By Asso- ciated Press. .)-Perhaps the chief subject of interest in financial and commercial quarters during the past week was the bi-yearly meeting of the federal reserve board with the governors of the several regional banks.
 Due to rumors of impending ad vances in discount rates which have been in circulation for a number of weeks, it was thought that the board might arrive at and announce a pol icy at this meeting. On this basis a considerable -olume of selling ap peared in the chief speculative mar kets. cotton receding about 8 cents from the recent high and stocks and bonds displaying a distinctly reac- tionary tone. A tendency toward caution was apparent on all sides.
 Actually. the meeting developed little that was definite with regard to the federal reserve policy. Tues day a statement was given out de- claring that there was no basis for any rumors with regard to the boards intentions, while at the close of the conference Thursday anothef statement rather emphasized the usual nature of the discussions and made no reference to a rate policy. No Change in Rate.
 It was considered in most quarters that the events of the week indicated no immediate change in official rates and the markets steadied on this basis. They did not. however display any particular tendency to rally and lapsed into dullness.
 Although the conference outward ly resulted negatively. it did serve to draw attention to the question of Al. e. t..- |. .1.s. policy As usual in such matters, opinion lacked uniformity In some quarters it was maintained that the federal reserve banks should not act until their rediscounts show larger increase than at present is the case. Others. however, held to the view that employment is now full and that production is at or close to the maximum attainable. According to this view additional expansion of credit will not produce propor- tionate increase in production, but will go to finance increased costs and prices.
 In this connection the recent in creases in wages in the textile in dustry were pointed to and the claim was set up that the stage is being reached at which labor is becoming less rather more than more efficient. It was also stated that further price
 
 commodities in which the cost of in dustrial labor is a large element; that it would increase the disparity between the prices of different groups of commodities and that it, would diminish the farmers pur- chasing power.
 Pig Iron Active.
 Reports from industrial districts meanwhile confirmed the impression of extraordinary activity. Pig iron production has shown a further in crease and steel output has abou; reached the limits of expansion Steel manufacturers, nevertheless. are falling behind on deliveries and prices still are showing a disposition to move upward. A certain amount of resistance is beginning to develop on account of high prices. as in the ease of equipment buying by the railroads. Equipment makers have sufficient orders. however. to carry them close to the end of the year.
 Railroad traffic continues to run heavy. weekly loadings setting new records for the season of the year despite recent severe weather. Feb ruary earnings statements for 50 Class l roads reveal the effects of the severe storms In that month. Although gross income is $37,000, 900 larger than in February a year ago. net is $19. 900, 900 smaller at S32,000,- 000. This showing contrasts with that in January, when a good gain was recorded over the previous Jan uary but is readily explainable on account of the Weathnr