Current Situation

The dominant factor in the financial situation is the recent lowering of the New York Federal Bank's rediscount rate from 4% to 3 1/2%. Although this made money easier for speculation, the stock market kept fairly level during the past week. The fact is, some Manhattan money is passing to the interior states, while considerable is going into foreign investments. The final settlement of the French debt (see NATIONAL AFFAIRS) presages the floating of a large French loan here, the proceeds of which might be used to stabilize the franc and perhaps restore it to a gold basis.

Industrially, the business situation is irregular, even though statistical curves in the main keep on an upward trend. Customers are doing leisurely buying, and manufacturers keeping production near demand. Many commodity prices, especially of foods, receded slightly during the week. In April, butter, lard, lead, zinc, cotton, print cloths and rubber reached their lows for the year. This happened to copper, hides and beef at the end of March. Gasoline and crude oil have mounted with the opening of the season.

The final breaking of spring weather may stimulate consumption.

The British coal strike (see FOREIGN NEWS) may result in foreign demand for U. S. bituminous coal. During the four-month British strike five years ago the U. S. exported 4,000,000 tons of bituminous monthly to England.

The visible domestic supply of wheat last week was 27,980,000 bushels, against 29,290,000 a fortnight ago and 49,089,000 last year.