AMERICAN FINANCIAL OUTLOOK.

Auckland Star, Volume LIII, Issue 104, 4 May 1922, Page 3

AMERICAN FINANCIAL OUTLOOK.

ENCOURAGING FACTORS. THE MOTOR INDEX. (From Our Own Correspondent.) SAX FRANCISCO, March 14. While there is considerable discontent among the workers of the United States, owing to the continued drastic reductions in wages and the steady upturn in prices of certain necessities of life, there are those who are aglow with sunny optimism, strongly believing that the American financial outlook is brighter than it has been for at least eighteen months. They point to such salutary factors us that of iron anil steel production today running fully 35 per cent, above last year's average. Cheques passed through the banks in February showed an increase over the corresponding period twelve months ago, and it is declared this state of affairs haa not occurred since the middle of 1920.

The average price of listed stocks not only has reached a new high level for this year, but has passed the maximum level of last year, while bond prices to-day are at the highest point touched since 1919. Postal savings bank deposits show a slight increase over withdrawals for the first time in more than a year. Chairman Arthur Woods, of the .Emergency Committee of the National Conference on Unemployment, says: "There is every reason to hope that the worst is over; at no time has the situation been as bad ac all indications pointed last autumn." Call money rates ended the week at the lowest quotation touched with the exception of two days since the middle of 1918, namely, 3J per cent. O«neral Motors during this quarter is selling fully twice as many automobiles as it sold in the first threequarters of last year; other automobile companies report distinct improvement in sales, and motor stocks have been advancing briskly on the Stock Exchange. From Washington comev- this dispatch: "Improved business conditions throughout the country continuing through the summer were predicted by high Treasury officials. The marked improvement which has taken place recently in the general situation, officials said, beaTS evidence of permanency, and they add that a continuation of the gradual upward trend through the spring and into the slimmer months was to be expected." PRICES RISING. The largest drygoods house in America says in its weekly report: "Collections were satisfactory, reflecting improved conditions," evidently basing this assumption on more money being in circulation thTOugh industrial activity in certain branches. Agricultural States report "marked improvement in conditions following the recent notable rise in wheat corn, and food animal prices—a consideration of funda*mental importance.

The latest index figures issued by the I department handling statistics in Wash- ': ington agree that the price trend, on ! the whole, is tending upward rather 1 than downward, and this is calculated to modify the still prevalent disposition in many quarters to buy only from hand-to-mouth — a disposition which has been reflected by rather small purchases by the abnormal number of retail merchants who lately have been visiting the principal buying centres. Price advances have been recorded in iron and steel products, in copper, in lead, in coke, in sugar, in coffee, in certain grades of oil, in cotton, in hay, in rubber and some other commodities. Mr. L. J. Howitz, head of the largest construction company in America _._ says that building operations are on the increase. A further reduction in idle railway cars is announced, showing that transportation business is improving. Commercial failures are showing a rather notable falling off, and this trend promises to continue.

Thanks to the importation of gold, bank reserves have risen to 77.J per cent, of all Federal Reserve banks combined—an extreme contrast with the 51 per cent, of a year ago. The President of the United States made this cheering statement a few days ago: "We are making splendid progress toward dissipation of our agricultural difficulties." The decrease of 1,000,000 tons of unfilled orders on the books of the United States Steel Corporation would have been more unfavourably regarded had there been no substantial increase in the rate at which orders have been filled. When it is taken into calculation that the corporation's production had increased 25 per cent, since the beginning of the year, the showing has occasioned little surprise or uneasiness, particularly when it was considered also that the price trend had turned upward.

Wall Street refuses to become excited over strikes, either actual or threatened, and it is preserving a calm attitude toward the much-discussed coal strike which has every indication of disrupting the country shortly. All things considered, the optimists in financial circles are inclined to believe that a mild improvement in general conditions should continue. UNEMPLOYMENT PROBLEMS. The President's conference on unemployment, in its efforts to formulate plans for reducing nation-wide joblessness, has found American resourcefulness already mitigating this evil. Inquiries have brought to light, for example, that one New York company, which does a large business in dried fruits, by advertising has lengthened the seaeon for eating its products. A Cleveland firm manufacturing men's clothing, in which the styles fluctuate by seasons, has kept up continuous production by standardising its products and advertising inducements to retailers for accepting deliveries over an extended period, instead of only at the opening of the season. Of the 4,000,000 men who volunteered or were selected for service against Germany, more than SOO.OOO Americans are out of work, according to American Legion figures. Scores of the 11.000 posts of the Legion have been forced to provide lodgings and meals for their unfortunate comrades-in-arms —a state of affairs such as no one could have believed would be possible, a brief five years ago, when these men shouldered, their rifles and marched to the country's defence. To such veterans, who gave up everything at the call of duty. President Harding considers the country now owes a reciprocal duty—the duty of helping them to the utmost of its capacity to find work which they need to keep their families together and put ■bread in their mouths.