Evening star., 1922-12-23
BY STUART r. WEST.

Srecal Dispatch 10 The Star.
NEW YORK. December 23.-The
upward movement in the stock mar
ket this last week has had two-fold
significance. 1t has emphasized
again the point that in correcting the
speculative excesses of the spring
and summer the November decline
went altogether too far. and it has
measured the continued improve
Iaent in. the outside business situa-
tion. regarding which the testimony
is quite conclusive.
;ooKing back at 'the market OF a
month ago increasing importance at
aches to the action of the stock eX-
change authorities in forcing houses
which were carrying too many STOCKS
TO tighten their load. The question
,iaire system through which this re
suit was accomplished is admirable
as a protection to the public DONG
business in Wall street.
1t does. however, mean that unoer
ago liquidation of forced nature
and on very large scale can De
abruptly brought about and persisted
IN to the entire disregard or Vaiues.
The new policy is great improve.
rnent over the old policy of "let well
enough alone" 1t would be an even
greater step forward If the pressure
20 keep down speculative loans were
brought to bear before the excess
stage was reached-in other words,
81 the stock exchange action could pe
made preventive, instead of merely
corrective.
Improvement In Business.
Tho essential indications OF I'M
p-ovement In the business situation
are the continued rise i'll farm prices.
rho further expansion of iron ana
steel production the advance In cop
oer, lead and zinc, the usuaily
heavy car loadings. the surprising oe-
for the better in the export trade.
All these features have become IN
creasingly clear since the hrst OF the
present month and the advance on
the stock exchange is their ioslcai ac-
compartment.
II prices Of grain and live stock on
the western farms were relatively
:.s high as prices of cotton nothlns
more would be heard about the IN
sufficient profits of the farmer ana
political agitators would una tne
Ground taken from under their feet-
Rut even as it is. the recovery in the
Grain markets s'uce the middle or
September has made very consio
srable difference In conditions IN the
western states. 1t has Sign'Hed much
for the Duy1nS power Inc oSii
cultural interests will be able to con.
tribute to the business situation OF
1923. 1t is not improbable that 1t Will
La its effect upon political sentl-
>nent
Great Month for steel.
The steel companies have had the
largest December business in rNe
wears but this business has been con-
Quoted on a price level which tor the
tadenendents-that is those outside OF
me United States Steel Corporation
las involved comparatively small
,,-offts. The copper and other metal
PRODUCERS are now NJ" king money Tor
me first time since 1920.
In November the cotton mills took
more raw cotton th"n in any month
since July. 1917. thus completely dis
s,pa ting the fsar. which held the
cotton mar'-et in check during the
Summer. that the rise in the price of
the raw material would curt"il the
demand for the finished product. The
railro"d DIS OF the country are still be-
ing offered more business than they
can handle, but the seasonal decline
III tonnage from the peak reached in
october has made things easier for
lie shippers.
Europe Buying Goods Here.
November exports We're the largest
or any month since 1891. The de-
.ailed figures as to distribution by
Countries ara not Yet at hand. But
70 THINKS are u"Qe palmer. first.
that the increase OF tariff duties has
not had the effect. predicted ny some
economists. Of reducing foreign buy
:ng of American goods. and second.
Tat the picture of d bankrupt Eu
cope dragsiug down with it our for
sii trade. has been abSurdly over
drawn. The November export total
as S12.o00.000 larger than the Gc-
rober total yet III october the COM
ylete figures showed that Europe IN
general. and France and Germany III
r,a-ticular bought more in the Amer
Sean market than they did in the same
,..onth last year.
'rhe excitement of Il week ago over
possible international loan to Ger
any has died away now that spokes-
..en for American bankers have de-
,lared that such AN undertaking is
ont of the question until the repara-
ions problem is disposed of. The
'.opeful development Of the week,
..Jwever, has been the proposal that
:. committee of american business
Zen investigate German conditions
..ld determine just how much the
country is able to pay. This looks
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