Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-12-31
Business and Banking
Leaders Confident
of Prosperous Year

lsCJutfS III Tie liClNl on buoAlSso'' "'"N
banking in the United States are
looking forward to u prosperous year
in 1924.
Forecasts for next years trade,
prepared by some of the leading in
dustrial and financial executives OF
the country, generally breathe the
spirit of optimism. Opinion among
them is virtually unanimous that the
adoption of Secretary Melons tax
reduction program would be great
stimulus To business and Industrial
activity. While it is admitted that
the unsettled European economic sit
uation has an adverse effect on ship
ping and the copper and wheat mar
kcts, it is generally agreed that 1t
does not control domestic business
prosperity.
There is nothing in sight to cause
apprehension for the near future, i'll
the opinion of T.. H. Gary, chairman
of the board of directors Of the Unit
ed States Steel Corporation. Next
year he said, should be better year
than 1923, which was characterized
by 4 marked revival of business fol-
lowed by q period of decreased ac-
tivity, and then 4 period of renewed
optimism and cautious buying.
40 slIl lllblIN llloli vi p1t commence
in the business future Of our cQun-
try" asserted Charles NJ. SchWab,
chairman of the board of the Bethle-
hem Steel Corporation. Il would
point out the fact that our corpora
ton is spending $4,000, 600 to perfect
it's facilities for turning out steel and
steel products at the lowest possible
prices at our LackaWanna plants in
Buffalo"
Business men," Mr.. Schwab added,
should be very much hcartcned by
the soundneSs of the views expressed
by President Coolidge in his initial
message to the country. ] feel the
president, To remarkable degree,
has voiced the opinion of the Ameri-
can people and that Congress cannot
disregard his suggestions.
business may be hampercd at
times, but the driving force, the COM
mon sense and the initiative of the
American people will, in the end,
overcome any and all obstacles and
we are bound to proceed on our pros
porous way"
While expressing the belief that
"no other industry holds quite the
amount of uncertainty that the oil
business does. for the reason that no
one can foretcll for any long period
ahead the course of petroleum pro-
duction," ". c. Tca@le, president Of
the Standard Oil Company of New
Jersey. takes a somewhat optimistic
view of the outlook for 1924.
'"Throughout 1928" Mr.. Teagle said,
the volume of business has been good
but much of it at prices that allowed
no profit to the producer, refiner or
markcter unless the latter happened
to be a jobbcr with no liabilities
either as a producer Of crude or
rCtinCr."
Over production OF crude oil
brought about by flush Yields in Ger
tain Texas, Oklahoma and California
fields. Mr.. Tcagie went on to say,
contributed so generously to the pro-
ductIon from older fields as to mean
throughout much OF the year a daily
surplus in excess OF consumption of
about 100000 barrels. In recent
weeks the Powell field has dropped
off to well under so percent of its
maximum output. and the California
wells have evidenced failing gas
pressure
with further gains in consump-
ton probable" added Mr.. TeaSle, 1T
looks right now IS though the Couf-
try should begin consuming more
petroleum than it is producing
around the middle OF next summer.
If new production does not upset
this estimate, there should be II
movement of storage oil into con-
sumption the latter half Of the year.
There has been :; decided lift in sem
ti1Cnt apparent in tho last fortnight.
and SO far | see no reason TO think
that this row optimism will not
prove to be justified"
Nineteen tWCntv-foIr should be
banner wear for the petroleum indus
try" declared II. f.. Sinclair. chair
man OF the Sinclair Consolidated Oil
Corporation. In the last two years
eight major fields have been dis
covered or brought to their peak of
production. Any two of these fields,
ten years ago. would have demora!-
lied the industry. Naturally. produce
mand, bat tho tide began to turn
last summer and consumption should
soon exceed production.
The American public should real
izc that The present price of petrol
cum products is abnormally low and
cannot be permanently maintained
No industry can be expected to con-
tinuc operation at Il loss. 1t is an
economic imDossibility. \ few
companies may be making profits,
but thc industry as Il whole is losing
money, and has been since 1920.
This has resulted in a seeming bene-
lii 10 the consuming public, but in the
long run the improbable operation
o. any basic industry cannot be
Beneficial to consumers.
a peculiar aspect OF the last two
Years of depression has been that
during this period crude oil consump-
ton has actually increased SO per-
cent. This fact in itself gives ample
assurance that the industry will he
able to climb back to q normal con-
dltlon and earn u reasonable profit"
1T is not easy at this time to make
forecast very far ahead" declared
Alfred i. Sloan, Jr., president Of
ihe General Motors Corporation
nevertheless | cannot see any
fundamental reason why 1924 should
not be at least a satisfactory BUSH
ness year, and | can see many rea-
oH@ why it ought to be an exceed
In&iy good year"
IhCre IS nothing IN my Judgment"
Mr.. Sloan added, that would be mo n
constructive than general recogni-
lon on the part of both parties of
Secretary MELONS proposal for ta,;
reductions. l do not think any other
single thing would inspire as much
conilcence or do as much to stabilize
BUSINESS in this country. and it would
surely rebound to the prosperity of
all classes.
do not think European condi-
tlonS are going to have a great deal
OF influence. OF course it is honed
that the situation will he cleared nm
and if it does. it is bound to have n
good effect on sentiment in this
country. My own impression regard
ing mat situation. as evidenced bv