Evening star., 1923-07-01
FINANCIAL Leaders
EACE.FOURISSU|Es
Readiustment in Building
Trades 0vershadoWs Many
Other Questions.
MINE WAGES UNSETTLED
stagnant Market for Used Autos
May Curtail Output of New,
Machines.
NINE. WAGES UNSETTLED
BY HARDEN COLrAx.

What's the matter with Wall street?
For more than three months the
bears have held high carnival as
the year. Why have values dropped
an average Of eighteen points In
fourteen weeks? Is srtrouble around
the corner? Is Wall street gambling
right on a day Of industrial read
justment soon to come? ss:--
Oficial Washington. or. rather so
much of it as remains here in the
sweltering days of summer. has asked
itself these questions lately with
growing concern. Until the past ten
days it has not glimpsed the future
through the glasses OF the Wall street
traders. Today 1t has such a glisnpse.
1t sees no longer In declining values
the work OF professional traders out
with practiced shears to fleece what
ever lambs might come into the mar
ket. Instead. 1t seems possible that
the decline may be based upon SUBJ
srantial economic reasons. -
Looking Ahead Eight Months.
Wall street looks from six to eight
nlenths ahead and generally foretells
the tides Of prosperity by that margin
OF time. If there is any justiflca-
in its present bear state of mind. the
country will know what the trouble
is from three to five months hence
long after the real leaders Of the
knowledge of coming events which
determines the way Of the market
is shared by perhaps less than 100
men. big fellows all. each on the
inside of the industrial and financial
circle that spells good times or bad
for the nation. The rest Of Wall
street doesn't know, but follows these
leaders.
And at this time. when the tide
of prosperity is making new high
line on American shores. Wall street
may have sensed four things ahead
that have signaled 1t to trim its sails
Government officials here are begin
ming to wonder whether the four
take form about as follows: ...
Building Issue Looms Large.
l.. Readjustment in the building
trades. lately grown TO lead almost
all other industries in magnitude Of
operations. At the present rate, our
building trades are operating on the
basis of approximately $S0.00O. 600. 900
year. This is more than double the
normal volume of business.
Wages are at the highest peak
those trades have ever known and
the trend is still higher. The back
Masn w rs,arts a,ready has mas set in: according
and private Investigators in post
pcnement of ambitious projects and
in a growing rebellion on the part Of
the nome builder Prices are re-
by the highest men in the industry.
The possibility Of buyers strike.
now that the country Is catching up
with its most urgent building re-
ray ant Irn - A.
may exert its tremendous effect upon
, the nations prosperity with the
coming of fall. T..
Shippers Complain Over Rates.
.. Readtustment Of freight rates.
At the present time when nearly
everything else in the country's
work-a-day life has accomplished
much of its postwar price denation,
railroad rates stand generally at 80
per cent of their highest levels
Shippers Of all classes of commodities
are complaining with the farmers in
AT the same time the transporta-
ton system of the country, as a
whole, is earning money at rate
fixed by. the Interstate Commerce
commission is undertaking q survey
of conditions as a preliminary to
making up its mind about reopening
the question of freight rates. APP
parently Wall street believes that
the question will be reopened and
that there is prospect ahead for a.
period of uncertainty With respect
to this subject. even. If the present
rates are upheld.
well founded belief by market
leaders that freight rates probably
would be reduced in the fall un-
doubtedly would drive rail stocks
down In price, and they might carry
the rest OF the market with them.
Mine Wage Controversy.
3. Readjustment of wages In the
coal industry. There has been no
such readjustment since 1920; anthra-
ing today the highest rates OF pay
ever enjoyed. Notwithstanding.
there Is talk of a demand for higher
wages on the part Of the anthracite
trial conflict looms as an unsettling
factor. There, is little doubt that
the present state Of the Wall street
markets reflects this fear to some
A. Possible readjustment of the au-
tonobile industry. Production DUR
ing the current year has been at
breakneck speed. If the rate set
thus far is fair index, the country
will produce more than 5000, ,oo0 au-
tomobiles this year.
Used Car Market Stasnant. '-'f
Meantime the market for used cars
is as stagnant as the market for new
cars is active. The condition is re-
garded as decidedly unhealthful, and
many observers fear a sharp curtail-
menu of operations when the present
seasonal demand is over next fall.
These are the prime fears of Wall
Street, as officials here are glimpsing
them. No attempt is made as yet to
say whether any orr all of these fears
are justified. They may be appari-
tions or they may be real; officials
here don't know, ~.
But officials are studying the situa-
ton In each Of these four fields and
some minor ones with increasing at
tention.
tCooyrisht. 1929 -.
Narrnlu nnIoro nro, ,s,1