Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-12-24
BY STUART p. WEST.
Special Correspondent Of The Great Falls Tribune
LCnnxricht 1907 Ru -Graef Ealls Tribunal

BY STUART p. WEST.
Special Correspondent o. The oreat Falls Tribune.
Copyright. 1922. BY Greet Falls Tribune,
New York, Dec. 23.-The upward
movement in the stock market in the
last week has a two-fold Significance.
1t has emphasized again. the point that
in correcting the speculative excessives
of the spring and summer the decline
went altogether too far, and it has
measured the continued improvement
in outside business conditions, regard
ing which the testimony is quite con
elusive.
Looking back at the market a month
ago, increasing Importance is attached
to the action of the stock exchange
authorities in forcing houses which
were carrying too many stocks to
tighten their load. The questionable
through which this result was accom-
plished is admirable as q protection to
the public business in Wall street. 1t
does, however, mean that under con-
ditions like those of w months ago.
liquidation of q forced nature and on
a very large scale can be brought
abruptly about. The new policy is a
great improvement over the old policy
Of "let well enough alone"
1t would be even a greater step for
ward if the pressure to keep down
speculative loans were brought to bear
before the excess stage was reached,
in other words, if the stock exchange
action could be made preventative in
stead of merely corrective.
improvement in Business =
The essential indications of i'm
provement in the business situation
are the continued rise in farm prices
and further expansion in iron and steel
production, the advance in copper, lead
and zinc, the usually heavy car load
ings. the surprising demand for cotton
goods and the change for better in
export trade. All these features have
become increasingly clear from the
first of the present month and the adj
vance in their logical accompaniment.
If prices Of grain and livestock on
the western farms were relatively as
high as prices of cotton, nothing more
would be heard about the insufficient
profits of the farmer and political agi-
tators would find the ground taken
from under their feet. But even as, it
is the recovery in grain since the mid
die of September has made a very
creditable difference n condition in
the western states. 1t has signified
much for the buying power which the
agricultural interests will be able to
contribute to the business situation in
1928. It is not improbable that it will
have its effect upon political senti-
ment.
The steel companies have had the
largest December business in five
years. but this business has been con
Quoted on a price level which for the
independents, that is, those outside Of
the United States Steel corporation,
has involved comparatively small prof
its. The copper and other metal pro-
ducers are now making money for the
first time since 1920.
Cotton Booms.
In November the cotton mills took
more raw cotton than in any month
since July, 1917, thus completely dissi-
pating the fear, which held the cotton
market in check during the summer,
that the rise in the price of the raw
material would curtail the demand for
the finished product. The railroads of
the country are still being offered more
business than they can handle, but the
seasonal decline in tonnage for the peak
reached in October has made things
easier for the shippers.
November exports were the largest
for any month since 1921. The de-
tailed figures as to distribution by
countries are not yet at hand, but
two things are made palmer.
First. that the increase of tariff
duties has not had the effect pre-
dicted by some economists of reducing
foreign buying Of American goods
and, second. that the picture Of a
: bankrupt Europe dragging down with
it our foreign trade, has been absurdly
overdrawn. The November export
total was $12,O00,0 900 larger thar the
October total. Complete figures
showed that Europe in general. and
= France and Germany in particular,
bought more in the American market
than they did in the same month last
year.
The excitement of a week ago over
a possible international loan to Ger
many has died away, now that spokes-
men for American bankers have de-
ciined that understanding until the
PREPARATIONS problem is disposed of.
The hopeful development of the
week. however. has been the proposal
that a committee of American bust
ness men investigate German condi-
tons and determine just how much
the country is able to pay. This looks
altogether like the most promising
step yet taken toward a solution of
the matter.
Selling of Marks
Much significance is attached TO the
steadiness of the German mark in the
face of the p%rodigious expansion in the
paper currency. Within six weeks the
ranar 1Sc.IQ nF tho rQIchShlnk has