Show Raising Blockade Will Help Metal Mines of West Business Business Conditions Continue to Improve No Abatement in iii Rush of Business on New Nev York Market Market Mar Mar- larket lar ket Money l Conditions Only Means Ieans of Holding Down n Speculation By Percy M. M Cropper T l of the fact fad that many have ha been is ad advising n a reaction in the marSi markets mar mar- Si IN and a fl sn sagging in trade they have ha as yet made no appearance lo locally lo- lo call cally 01 or the nation with the result that business is moving mu with greater energy than ever er before Just where it will stop no IW noone tone one e can say and the outlook ok is for even en greater things than have ever r before be- be fore forc f rc been shown in the past It does not look now as though there will willbe down of business for adjustments but that this will have hu be bj i any settling ettl ng tobe he done on the move mo I Reports from the east cast are showing of t and Increased volume prices b Business siness is work for everybody every everY- Never Nev Nev- demand for more men bod body dy and a c er have Jave condit conditions ions been quito the tho same looked for a aC Those who Jn hi ii history of ot activities when the C cessation of intense e war war closed have been disappointed Just to what extent the thc feverish Ce rush of business will reach Is something that ii 60 one Is able ble to visualize at present the t time In man many years cars IVall l ll street I is showing Intense business touring ring the hot months The Thc reasons a re as varied as there are Individuals S Some Same me of the market wise declare that IKe th public is ts maintaining the tho business nd d prices It Is pointed out that bankS bank'S bankIng bank- bank S 'S Ing g and other Interests who usually ell ll II out be before e oc a R bull market reaches Its Us hel height ht are fire still In tho the New Ne' York market and now show Immense profits Should the they rell out now the they would be Pc compelled to divide up a great share with the government g In the way a of ot inno In- In no tax l' l For Vor or that reason the they are reed to hold on As the stocks which hey are holding are practically fixed orthe j r the time being the public Is run run- In the market I Although r The rhe copper market Is show- show It Is of but lit lit- JIg jig an upward tendency lit I as most of the Eg te e e help in the west irge rge rge producers producer are arc still unable to dispose dis p pose se of their stock on hand In fact tact fi i st of them are not able to get rid the they are producing Tho The stock stok Hold ld ld b by the government is being die dis- j of first and the others must folE fol fol- vi w. w f E- E Silver IN is helping I The he hl high h price of ot silver has been the thee ie L. L e favorable feature of or west western rn mingo minis min mm- is g go for tor months Zinc Is also In a potion po po- po- po ton tion to be of or considerable assistance lit t now but most of or the mines are trouble In the Increased cost costi t i production The low grade Dr oi a year ea a ago afro o could bo ho shipped chipped are arc arct aret arett t tt being belnE handled at present The he that the blockade 11 11 l.- l. 1 2 raised Immediately puts forth ew condition which it Is expected 11 11 greatly chancre i conditions In most E this Is looked upon as adding petus to business as It will give Ji an anfor tiet for metals that tha t will help the I est This should ease case the metal con con- lion tion greatly In In- Inthe the next sixty days e to 0 business s conditions Hen Hen- con I L. L Clews of New ew York has hns the follow follow- to sa say From a n purely economic standpoint commercial l w world thou though h t straight straight- ht- ht ng Ig Itself out Is more or less topsy- topsy vy Abnormal conditions created b by byr 1 r. r r seem to disappear ver very slowly Ing four our business machinery has not yet vet j time to recover reco from the contusion confusion by hy government KO control nor adt adt ad ad- st t t Itself to automatic regulation It ItI It Ii 11 I be some time before government o rol Is entirely eliminated either t r re e or abroad d. In Eu Europe rope a large asure of such regulation will be ti for far many months to come I bably until supply catches up with n nand and and which means much hard work r patience n this country the tho same holds hoMs true ugh In a n. less leKS degree because we weil wee were il re e not felt tho the pang pane of hun hunger er and ch h of the government go regulation Ifor its chief end the assistance ur ur allies While hUe these unusual conLone conns con- con Lone Ions ns last the law of supply and derid doud de- de rid ud d cannot work with lt its ItH usual and freedom for some Rome restraint seeded needed upon the greed reed that profits n a the misfortunes of others and and h h things 8 as they arc are the free op- op Ion lon of economic law Is suspended or made ver very Irre Irregular ular urn to the tho must also await or of tho the peace treaty t which g. g gh signed cannot go Into full Cull lical operation until formally rat- rat Liby by by all the countries concerned 1 I lour our Senate ratifies the treaty President Wilson IOn proda proclaims Ims peace United States tateM will be bo technically I ar aT with Germany and the trading trading- the thc act forbidding com com- lal ial intercourse still remains In inI L IB I I It Is not beyond the theL I resumption resumption re- re range e pf QC possibilities that a R. partial 1 of trade with Germany German may maybe be permitted before all 1111 technical re- re are arc complied compiled with Outlook Conflicting tendencies which developed developed devel devel- Is a There In June Juno still prevail decidedly strong strong- undertone In the market market mar mar- scored sharp ad advances advances advances ad- ad ket and some shares not alwa's always al always al- al were vances which however howe On the tho favorable favorable favor- favor favorI ways was cas easy to maintain I we have hn a I able ablo side or of the picture most assuring outlook for business I based chiefly of oC course upon our ex extraordinary ex- ex I agricultural prosperity We Ve next have havo the revival nl consequent upon establishment of peace the re resumption resumption resumption re- re activities of oC many war pre-war and tho the urgent Necessity of at making up UI lost time and lost work during the war the latter being conspicuously noticeable in the real estate te and ami building trades which would breakout breakout break breakout l If financial out into a n. genuine boom limitations did not prevent Another powerful stimulant Is the tremendous expansion In our lorei foreign n trade and shipping concern concerning Ing which expectations expectations lions still run ver very hi high h. h Finally we I I I have the element clement of 01 Inflation In nearly nearly near near- I I ly Iy eVer every line Uno o of business s the power I and potentialities of ot which are not al always always alwn's al- al ways wn's fUll fully appreciated Today Inflation Is a real and Yer very powerful factor In our business life UCe It has always fol followed followed fol- fol lowed great eat wars w-ars and this particular cataclysm has been n no exception As everyone knows to his discomfiture discomfiture commodities have risen enormously enor enor- and be beyond ond all reason Securities Securities Securities ties alone have hao lagged behind Psychology Psychology or the public state of mind not has a little to do with the advance for for or while world-wide world scarcity has been the main lifting power the law of supply and demand appears to be bo temporarily temporarily tem tern Impaired 1 If It not suspended by bya a universal breakdown of or buyers buyers' op opposition opposition opposition op- op position to high prices As long as buyers buers will vill pa pay sellers will demand and nothing short of ot exhausted purchasing purchasing pur pur- chasing power on the part of ot the public public pub pub- lic lie seems likely t to stop atop the pre present ent unreasoning upward movement In merchandise This country countr is livin In Ina Ina ina a state of oC exalted prosperity the end endot of ot which Is not yet seen and hardheaded hardheaded hard- hard headed practical business men consider consid consid- er it more advantageous to go o with the flood tide for Cor the time being keeping keeping keep keep- In ing a n sharp lookout for evidences e of oC the returning ebb The Tue 1 un JI Market There is one and perhaps only one effectual restraint upon the development development develop develop- ment mont of or dangerous speculation from Crom S such U cli cx extraordinary t ra 0 rd i n a ry co conditions conditions' n d I ti o and that Is the mone money market Fortunately Fortunately Fortu Fortu- Its Ihl limitations are keenly appreciated appreciated ap all- ap- ap b by the banking fraternity Our banking lanking Institutions passed through the test of Ot war var In splendid form and their resources have not been Impaired despite the enormous load imposed on them b by government and other financial operations Tho The demands upon them will however bevery be bo bovery cr very heavy for many months to come The Tho government must continue continuo to be bea a heavy borrower on short hort time until our war expenses have ha been more closely paid Recently the tho banks have ha ma materially lessened their holdings of ot government hO obligations and will silI be bewell bewell bewell well able ablo to proC proffer r the aid needed In Inthis Inthis inthis this direction Tho The most serious problem problem lem len probably Is the financing of our export trade which has reached such unwieldy proportions and the resulting resulting result result- ing Inh abnormal volume of ot exports can only bo offset or diminished by en encouragIng encouraging encouraging en- en other countries to pa pay pa either In goods or securities Hereafter Hereafter Hereafter Here Here- after as n. n matter of 01 self protection credit to foreign countries will wilt be bo granted with Increasing Increasing- precaution although a n. liberal policy C In this re respect respect re- re Is absolutely Imperative for Cor the tho rehabilitation of Europe In which we weare weare are arc as much Interested as Europe It Itself Itself Itself It- It self A America merca must set aside Its itA provincial habits and recognize that safe Hafe and profitable Investments are arc to be bo found In Europe and elsewhere as aswell aswell aswell well as at home Another demand I forced upon the mone money market et I Is the legitimate call of or domestic trade which Is not anI only large In volume hut but much swollen by high prices that materially ma mn- curtail tho effectiveness of banking resources flanking Banking conditions are arc spoken of b by the monthly letter on business conditions Issued by the Alexander lexander Hamilton Institute as follows Collow's B By fly banking policy we mean the at attitude at- at of the bankers towards IncreasIng Increasing increasing ing loans and ani fixing tho the tH discount rate In the tho United States the policy of at all banks Is largely ely determined b by the tho policy of oC the federal reserve c banks hanles For Instance It If the federal reserve reser banks should Increase their discount rate on the tho best class of ot da 90 day 90 paper f 1 nn f P. P I BUSINESS CONDITIONS CONTINUE TO PROVE I II II I I I Continued front from preceding page Illge I front from I 11 Per iier cent to o fi r. per cent the tho private to commercial banks who wh would I have hi to PIl pay triO increased rate on tho the I loans they hey obtain front from the tho reserve reser I banks would be forced Corcell to char charge o their I customers proportionally more I I The te federal ros reserve t e board at Washington Wash Wash- ahn ah ington n feels that loans should be re- re 1 und and that interest rates should I Ie Ii i e bc Increased in itt order to discourage 1 further C e e credit extension It reco active trade Is la ablit and antI that needs financial n assistance nCe but in a recent I of oC 1 the 1 the Federal Reserve Heser Bulletin LImo Iho i question is raised whether It ls is not better lo to restrict lending abroad some same h what t at tIn tho present time tune and postpone thc the reconstruction o of Europe until 1 prices hav o declined to a lower lovely lovel 1 n of or ur n pl n ed i of devastated d areas ic for Co machinery r ch e t to I I replace destroyed I Thero There I Ic I danger that lint foreign countries coun coun- tries will till borrow capital excessively ely now while hil time dollar enjoys only half hair I Its Us former fornier purchasing power Obviously Obvious Obvious- I ly whon shen prices have o declined It II will willbe willbo bo be extremely burdensome to pa pay the thc debts contracted at tho the present high price level le Tho Iho Bulletin states I It must never nC be Cor forgotten otten that the economic scheme of oC the world will beI be bo out Gut ut of or balance and adjustment until I Europe's economic power Is measurably I ably restored The Thc United States like cr c every other country countr must care carefully CuI 1 consider what whItt is the maximum amount with which It can reasonably part An Ano I advance o of term long credit lt means the thc taking of or capital and hence o-f o goods from Crom the Iho American marl market ct I The Time attempt of our financial system tem it 2 advance lt credit at nt ni a rate more mort I I I rapid than Justified juriL b by the e- e rate t of r I sa ln saving simply means an advance anco inthe In In Inthe the tho cost of oC living t to tho the average a consumer consumer con con- sumer through h a further a aggravation atlon of or existing conditions of oC inflation In banking und credit with harm notI not on only 1 to lo ourselves but also to those who receive advances ances on a nn an n unreasonable high hiS basis of or valuation Time The natural tendency of ot tIme the present time Is isto to attempt to accomplish too oo much In a short time and to go SO the thc natural limits set b by available i re reI resources re- re sources thus over and crippling crip crip- crippling pling the tho Investment mechanism of or the country and nd opening at least tho the possibility of serious serIouS' danger langer cr as asI I This TImis quotation will rudely disturb those who believe e we arc are on a a. permanently per inn hl high bight h price lc level I. I It su suggests ests 1 that as oon sonim os us the time reserve reser hanks banks be beI begin begin be- be gin to tako take in sail that Is to In Increase lit lit- crease discount rates rat and restrict cred cre- I I I I 1 I It It prices must fall fail But Dut when whon shall 1 the tho reserve reser banks banks' discount nt rates s he be Increased increased increased-in In In sl six sie months o months or two years Temporarily tho rates are arc kept low to favor or the treas trens Ir ury A t. year hence however when treasury treasur opera operations subside we may expect the federal fader reserve boar to take the thc business situation In hand and bring brine about a deflation of credit prices minces Them are arc two reasons why the problem may not be tie courageously handled han ban Th The first la it that deflation of currency currency cur cur- rency and prices would compel lower wages It would temporarily restrict Industrial expansion and therefore re reduce re- re duce employment Tho Thu second reano on onIs Is that wo we shall bo be In the thc midst of a presidential campaign a year hence and time the reserve board may hesitate to precipitate a crisis In Industry and employment until after time the elections Coleman New York In their review of business conditions make the tho following comments Crystallization of a dominant opt optimistic trend trond is apparent at tho |