The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-06-02
EXPERT Believes.
DECL me IN STOCKS
HAS RUN COURSE
Even Pessimistic Ready To
Admit Nation Not Going !
To Docs
by WALTER II. BROWN
New York Commercial

By Leased Wire to The Age-Heraid.
NEW YORK, June apparently
the. decline in the stock market mas
run it's course for the time beng at
least. 1t is coming to be understood
by even the most pessimistic that the
country is not exactly going to the
dogs. 1t has been peculiar psycho-
logical manifestation such as mas
been seen but seldom in stock mar
ket history. In fact, it is doubtful
if there has ever before been case
of the country being afraid of its
own prosperity. When an attempt
has been made to analyze 1T, 1t Is
partially understandable because of
the sudden transitions from war &C
tivity. it's sudden cessation following
the armstice, the hectic postwar
extravaganza, the collapse of the In
flati6n bubble and the, sudden sharp
recovery. These business somer-
saults have, been rather discomfort
ing, and the business communtts has
come to wonder what next" And
just at this point the economists and
pseudo economists begin to get to
work with their analysis.
Public Fears Depression
Never has there been such de-
Iuge of statistical advisors, "busi-
ness engineers" information serv-
ices, and what not with their carts
their peaks and depressions, their
business cycles and an almost inter-
minable variety of theories. they
have all agreed upon one thing, and
that is that a peak follows a depres-
sion, and a depression follows peak.
That being the case, our present
prosperity is regarded as its peak,
so that in due course we must enter
into a period of depression, and the
public mind, having thus been
trained to expect it. any little thing
that seems to point to a reactionary
tendency in business is given an eX-
aggerated Importance.
The most that these analysists can
do is to record what has happened
in the past. They can classify the
peaks and depressions of the past
to their hearts content but when
all is said and done, they are simply
dealing with past history. They are
noting merely the effects of previous
causes, and the only value of their
arguments is the demonstration OF
certain economic principles which
have been pretty well demonstrated
for centuries past. Certain causes
produce certain effects, and the point
to be determined now is whether
these causes are reproducing them
selves.
"AccidentaI Factors"
just DeCduSc OHc CduoC lOiAOW CN
another In times past does not In
dictate that they all follow one
another In exact order now Or
whether they will exist at ALL All
of these prophets. have taken care to
hedge themselves by allowing for
the introduction of accidental fac
tors" The nat result has been to
bring about an unsettled feeling
which has been reflected more in the
stock market than elsewhere.
The one uncertain factor in the
whole situation is the attitude of
labor. With the building industry
rushing at furious pace and with
contractors bidding against one
another for the labor supply, it is
not at all surprising that labor
should take advantage of conditions
to demand the highest possible re-
Enumeration.
The reaction taking place in the
building industry can, of course,
spread elsewhere. 1t. is beginning to
show. somewhat in textiles but has
not al yet reached such proportions
as to cause the grave anxiety that
exists in building.