Evening star., 1921-06-25
BY STUART p. WEST.

NEW YORK. June 25.-The trouoie
with the Wall street situation TINS
week has been mainly psychological.
The nerves Of the speculative com
munity have been shaken by the
spectacle Of prices dropping steadily
with scarcely an interruption, for a
full month, and there has been a lot
Of foolish selling Of stocks and
lot Of still more foolish talk about
the alleged "crisis' in the affairs Of
business throughout the world.
Much Of the responsibility for this
state of things rests with people in
high places. Some Of the steel trade
leaders have allowed themselves to
be quoted as extremity discouraged
over the outlook in their line. Cos
sip has been active concerning the
supposed attitude Of unnamed bank
ers. which. II 1t were true. would be
very disheartening. Men of authori-
ty on the stock exchange have been
going about saying that the recent
selling has been done by rich men.
by insiders, alarmed over conditions
in general.
The result has been to create a
feeling Of depression and uneasiness
which Is not warranted by a calm
weighing of the facts. Not to admit.
the corner last autumn and is much
better fixed than it was a year ago. is
ignoring of the evidence. 1t is shut
ting ones eyes to the trade figures of
England, France and Italy. to the
balancing Of the British budget SO
as to leave q handsome surplus. to the
liquidation of almost all Frances
floating debt in this country. to the
removal by the Italian government Of
the restrictions upon exchange deal
ings, because Italy's economic posi-
tion has improved SO that these arti-
fetal props are no longer needed.
Pessimists Hamper Recovery.
The people who are talking about a
"buSiness crisis" now. were the same
ones who were more or less openly
predicting a panic last autumn. They
were wrong then. and they are Just as
wrong now, but in the meantime they
are doing a lot of harm by spreading
q sentiment of uneasiness. which, just
so long as it lasts. will stand against
business recovery. AS matter OF
fact, when we speak of trade depres-
sion. we have reference more par
industries like railway equipment. to
the petroleum situation .and to aGri-
culture and the various lines which
depend upon farmer patronage and
have suffered by the great stump IN
farm prices.
Trade Volume at Normal
When we look in other directions
the picture is brighter. Woolen COM
panies are operating at 80 per cent OF
capacity which a year ago were
closed down. Leather manufacturers
and the makers OF boots and shoes
have written off their losses and are
again making money while their in
ventories have risen considerably, as
compared with two months ago.
Clothing manufacturers agree that
their business has turned the corner.
and while the retail trade is expert
encing the customary summer dull
ness, the trade volume is up to the
average Of normal years. The cigar
cite companies report earnings well
ahead Of a year ago.
Steel Price Test.
Evidently, then. the statement that
business is bad must admit number
Of very important exceptions. AS for
the rest. oil men think that the pres
ent campaign for reducing output
" i'll have made such progress by the
end Of the summer that the present
stock will have been worked off. and
that later on there may even be a
shortage. In the meantime, of course,
few Of these companies will make