Show I eling of Caution i Being Developed in All Business Lines re r- r ic e C Has Tied Up Many 1 lany Millions of Dollars Wool Clip ill il l Cause Cuse Further Furher Strain on Banks Bans Immigration Has Again Started I IBy By Percy iii ift Cropper 2 The Herald Financial Editor Edior j ITH H a continuation of calling oE or loans bails by the banks bunks a sporadic strike that that has ha tied lied up millions of dollars in il various ways causing a partial paria sis in many centers center a 3 continued high rate rale of money higher prices tome ore me commodities the week closes with wih many uncertainties and a great great- gt of caution culon which is only ony offset by a saner view being taken of irs i s throughout the country coutry One sign that the present jolt may jar the Ib b back to sanity in expenditures for luxuries and lavish l living ng is ring forming of overall overal clubs cubs dinner diner bucket brigades and a greater hesitancy ever in i buying Overall Overal clubs club are at present as big jokes as hard parties parle but they are the start in the direction in which things thing must in r r n the start star towards toward normal noral It will wil allow alow the r reservoir er of supply to ton I railroad r. r strike has has' caused some ring Ing In n certain quarters and this King have ave a beneficial effect For all al lit Itt it has cost It will wi do somo some good thousands who have havo been need need- thrown out of work will wil realize abnormal conI con- con the they are facing facing an ii I and perhaps must bo be prepared ore of ot them s s snot not probable that there will be lC I reat ret Improvement until the middle I tho called so-called so-caled so white collared peo- peo I Ir ire rc In a position to save sa e their who M fey y 1 It is this class of people I upon for the financing It Is from them that Ms qs Is the steady I income of business buying of homes the savings aings ac acts acs ac- ac ts s 5 the purchase of ot insurance the ments in stocks and bonds tho the Unsteady stead accumulation of wealth Ise is ise e C hands bands of the middle class and ande te e past pat two years the they have been ng ns ng time They are arc the have Lave een charged with push- push ave rages ages to the nth degree and only fig g about 70 per cent of the cn- cn effi- effi that the they formerly gave gave Iring ring the past week the tho Bank of nd ind has Increased its rates on deto deto deto de- de to 5 per cent cent the highest rate E las has been in effect In tf fifty years Ii nuch uch as the banks are endeavor- endeavor I to 0 0 deflate defate credit by increasing the tho I of ot money monc it might be t to their In- In to tr try and make savings more The The Tho New ew York market Is ent paying 0 but little attention e c high rate of money and md man many manye e S have been driven through high j into speculation Foreign se- se 1 es es e's I are making such Much tempting of- of to those with small smal amounts of y Y that it looks as a though the thes I 1 s must take some somo steps towards ding money to them them other ther drain on the local banks for I ext sixty days Is the starting of tf l clip cHI Already some of ot the theda da have disposed of r wool for this year at prices prIes rang- rang from CO 60 to 54 64 cents cent On account of I high price of wool wool it i is now Ii hY that the banks banks' advance anco a more they formerly did i west has felt but little the tho bane bane- bae- bae fu once of or the railroad strike but now on the effects will wil be bo felt felti j i It I has ha nearly nearly closed down tho the Industry it has greatly reaty hampered shipments and it 1 Is just begin- begin I to be felt in tho the mining camps camp Ie i ic Le e west The smelters have hayo thus ecU een the greatest sufferers It I has I f been felt severely in the coal s. s other feature durin during the week Ithe he heavy decline In Liberty bonds ft Victory notes Yes Yesterday erda the thet he heh h t 4 went ent to 87 the tho lowest price hick tic the issue has haM ever sold The Thery Thery Thery ry notes were also lower One Onen n for tho the heavy decline is the hat man many of ot the large industrial c of oC the countr country have been g gout out their holdings s to provide t il LI l' l with which to carr carry on their 1 ess ess because of the hi high h rate of l I y The General Motors corpora- corpora j ir for or Instance has disposed of 28 ii 0 worth of or bonds that It I held I 1 trUce has also brou brought h out a lar large largent c j nt of bonds from the small smal holti- holti gE I Tt it I is probable that the market 0 I tiffen up shortly shorty as some of the thet t have hav reached a a point where iia Is yield of or 6 jis a Iel per cent 11 Immigration Start has ha a again aln started but it j be many months and perhaps a before there will wil be an any surplus of oC ir tr- tr trAt jr At the end of the week there Pome unemployment shown in SaltI Salt I This was du due to inactivity In Inn In n lines nUnes which have not boen boon push push- I l on account of oC tho the uncertainty of oC I Iab abor ab r and material market market This jt t temporary I the commodity market there has hasan hasan hasan an advance In some somo lines At the time lUn e there has been a sl slight ht dc- dc oth others rs The he sugar lugar situation Is hat that promises much hl higher her prices lint present while in the wool mar- mar hero appears to be a great defor de- de 10 for the highest quality of wools ot much o of a demand for the met mc- mc t class clas now looks certain that there will wi gher prices pries paid for copper and within the next net few months Cops Cop's Cop CoP- s 's s reaching a point where it will wi and arid It Is believed bile cd that demand will wil grow rapidly to a a. Unheard of before i London metal market marke has ha been ing ins a great deal of unsteadiness g the past week The Tho zinc markets marketis market is 18 s still sti much above what Is 16 beai be- be ai jd in this country countr the tho copper copperS S et at has been about the same as in lea ica le and conditions are arc about the Jin Un in the l ad market market rJ umber of explanations are being T as tas to the tho cause causo of tho the decline In iii Ii Silver 4 I LIver Ier er market one being beins that it Is Iso IsI I jo o o. o the advance In the rate of or ox- ox fX- fX x- x e. e There has ha been less of a de- de from India and China during the theD n. n D' D thirty days and England has been Jockeying gold old between the Unit Unit- I 11 ates tes te and South America As 8 soon dian dlan settlements be begin ln to mount am aln it is probable that there will wi Other advance in silver siver to tho the business outlook the maretter mar mar- etter eter o of Goodbody Co of Now has the following following- tar far as volume ot or business Is conI cond con- con d d. d I it i will wIl probably bo be limited only e volume of or production This In depends almost almott entirely upon the lie theY theand Y and efficiency of ot labor Supply ng nJ augmented u by tho the resumption migration although h this is a as yet yr-t f t f. large enough to offset the re- re lot laborers to Europe which ha has on since tho the armistice The ncy scy of labor is probably greater I. I t was last y year ear ar IU High h prices arc are v it t spur sour toward greater earnings lI ho ha labor troubles which were so soTh Th lent ont in 1919 have not appeared In Ins ll s proportions as yet et Indications rest arc aro given ghen however by bv the f r. strike and b by the u. u spreading of oC WI switchmen's strike which i to be gaining at tho the cx- cx x- x tot of oC tho more conservative labor t. t There Is a possibility that element may get get control labor Jabor situation and mako make serious e. e o 0 prices tho the federal reserve bank T York lork warns us that credit conn eona con eon n a alone will not bring them wil The bank ank In its Us annual report n i to sa say n ny fly necessary industry in ir which Is unequal to to the do do- I mands of ot consumption the pressure of oC higher credit costs Is real really absorbed In tho the higher prices which absence o of competition permits Its while refusal to ta extend credit merely tends to widen tho the gap eap between supply and demand and leads consumers to pay even higher prices for the decreased supply sup sup- S ply ph In the abs absence nce of industrial competition competition compe compe- so general at present too much must not be expected from rom credit credi pressure pressure pressure pres pres- sure alone on either the volume of ot Credit or the price of So goods A decline In the he price of oC goods through the y re- re of of- of competition however will wi surely surch bring bring about a decline in the volume of oC credit required to product and distribute them Apparently the bank considers the present large lage dollar dolar amount of busness business business busi bus ness to be due to price rather than vol vol- ume It I anticipates no curtailment of ot demand demant The whole process o of readJustment readjustment read read- Is to be bc orderly and accompanied panie b by prosperity to all al We Wo hope that this is so o but are inclined to fear that the readjustment will wi be accompanied accompanied b by curtailment of demand and that there will wil be some now prosperous prosper prosper- ous who will fall fal b by the wayside The National Bank of the Republic of Chicago in its n I April Apri monthly review I The The e verv fact fact that the inevitableness inevitable inevitable- ness of business sR deflation has been so widely discussed Is tho the best assurance that the transition will wi be in the nature of a gradual readjustment rather than a sudden upheaval similar to man many experiences of the past Since the federal reserve board Initiated its Is Wise wise policy of contraction the tendency tendency ten ten- dency toward conservatism in busness business business busi bus ness has been progressive I Looking for S Retail markets are arc being watched closely for fr or signs of the beginning of oC the long-heralded long drop In prices So far few feW such indications have been forthcoming and ad those thos by no means conclusive The unknown factors appear appear ap ap- ap pear to be first first the extent of or the unfilled demands of that largo large ato part part of the consuming public which has benefited by high hiSh wages and second secondly 1 whether those demands will wil be curtailed cur cur- curI I tailed or withheld because of ot the tho high prices that prevail preal In short the maintenance maln- maln of oi prices depends almost wholly upon the attitude of the conI consumer con- con 1 I sumer In the case of OC wearing apparel there appears to be a n very delicate ad ad- ad nt between supply and demand If H the consumer continues to buy at present stilt still sti higher prices are aro I possible If on the contrary contral he ho falls fails I to bU buy or to buy in accustomed or ep expected volume both retailers and I wholesalers will wl find themselves overstocked over over- i stock stocked cd and this glut glut of stocks is likely el to affect all al factors In the trade hack back to the manufacturer of or the goods goos with a tendency to unsettle prices all al along the tho line lne Boom Rom In iii nUt It I is apparent that we are now witnessing witnessing wl wit wit- the belated rise In real estate values which alwa always s 's follows a sustained sus sus- advance In n commodity prices In this c case e however er being accentuated b by the practical ces cessation aton of oC building luring during the war Although the season has been delayed a full ful month on tho the I average the amount of work going goins forward is very vcr extensive while the projected or contemplated work is Ig said to be of ot record breaking proportions Comm nUn Comm on business conditions the thc W. W J J. Wollman Volman Co review O ot or New York says Great Britain dUrin during February made Imports am amounting to pounds against pounds in February last year Her exports rose from 52 pounds in February last year ear to 10 pounds pound a this year ear In other words while her imports showed showe a riso rise of about 60 per cent her ex exports exports ex- ex ports pors gained halne-d halne more than per cent Moreover Great Britain's imports consisted consisted con con- cn- cn largely of oC raw materials of Industry in industry in- in which in time will wl bo be reflected In i great greatly increased exports As stated slated above aboe the manner manner In I which Great Britain is regaining control con con- coni i of commerce as w well a ag as gold has ha contributed to the reco cr recovery In the pound sterling The he prime factor however however how how- ever is the tho sound souni policy adopted for the reconstruction of British finances h he methods as well wel as the results constitute constitute con con- a model which our own government government gov gov- might well wel consider Tax hUNt The excess profits tax Is an Illta- Illta Ion tion ton to profiteering and a needless stimulus to rising costs It brin I brings s this result resul about in several ways WaE Industries Industries Indus Indus- tries furnishing large large amounts of oC raw materials such as mines lumber and the like gradually drift toward sta stagnation stagnation stag stag- nation naton unless they can make Inordinate inordinate inordinate nate profits Their owners prefer to leave leavE their trees standing or the ore In tho the ground rather than ort ground pa pay profits taxes which run as ns high as 80 per cent cent This results in a scarcity of oC raw ma ma- Ia- Ia tonal rising prices and lowered quality H ity o of goods Th The Tho excess profits tax Is also alo an in in- in vi tal on to needless waste Numerous corporations find it l ad advisable ahle to add largely largel to their expense accounts and other needless outlays which have no consideration for sound Lion tion These TheBe items are aro charged to expense ex expense ex- ex pense penso account and go to reduce tho the volume of oC taxation The n new v secretary o of the tho treasury presented several of or these points In his recent discussion of tho need of reform In taxation but hn hits recommendations recommendations showed a timid tion ton to go o to th tho heart of the trouble for Cor his sUg suggestions on th tho subject of ot modifying the present system did nt call cal for tho the elimination u ot of tho the excess profits tax In view of pur ur mr current financial needs no one will wil be Inclined to ques ues tion ton th the advisability pf f heavy taxes on lar largo large o incomes This should bo be bl done dOM however so that lint the burden may Interfere in In- In as little as possible with the accumulation of oC capital Double taxation tax tax- aton atlon should be reduced d to a minimum It I is unfair and It is economically un un- un sound At present It is hI driving Jar large e accumulations o of capital from Crom the field of or enterprise Into securities that are arc exempt from taxation May oT Coitt Cosi CoK More or Hayden Haden Stono Stone Co say Bay The Impression given m is that the public is 18 an ea eager rr purchaser of stocks Continued on FoH rn ne o FEELING OF CAUTION BEING DEVElOPED t C Continued from r m Preceding Page Frankly we see seo vcr very change In general conditions There Is Is perhaps a n feeling that the tho period of at hi high h prices of or inflation Is to continue rather longer than at nt one ono time sup sup- posed It Is true that so far is As s tho the ultimate consumer Is 18 concerned there there- has been beon but little change for the bettl better bet bet- ter tl possibly some somo for the worse In the cost of or articles entering Into dally daily use It must be remembered however that the ultimate consumer will wilt be the last to feel tho effect of any change In the |