Evening star., 1923-10-27
Business Situation Confused
As Stocks Continue to Tumble
Downward, Movement Led by Special
Groups-0as, Coppers and Textiles
: Weuk-StOre Sales GOod-the Outlook.

consequent severe competition. In
others--And this seems to be true OF
the mA1ority-output has kept with
In the bounds OF incoming orders.
ns Sro, Of san ff.y ri b.
used against certain basic industries
but 1t is very far from applying to
the situation In general. -"
Demand for steel ImpFoves.
Summing UP by. Individual trades
the demand for steel has been better
In October than II was In September
1t has Increased suficiently to turn
the balance In some departments
from excess output to excess new
business. while in other departments
1t has not. Production of crude oil
continues to hang around its max
imum and to run somewhat shead OF
rhe position az shown in the quar-
terly reports OF the leather companies
ts very unfavorable and the shoe
manufacturers are suffering from the
extravaeant outturn Of last spring.
Under the hood OF & low.eost south
sag, and here. too. there Is an ad-
verse relation betw cen supply and de-
mand. Tire prices are at the lowest
on record and the outlook in the tex
tile trades Is uncertain.
? CAala stores Dolas Good Busincss.
All this has been reflected on the
stock exchange in further downward
readjusttnent In the stocks Of com
panies engaged in these lines. On the
other hand. retail business, as repre-
scented by the chain stores, the de-
partment stores, the mall order con-
Germs and the tobacco dealers, 10 ex.
ciated in the recent operations. The
market seems likely to contlnus in
this discriminating way until zach in.
dividuM trade situation has been
properly measured. There Is no dis
position on ss as yet to discount the out
The preliminary Impression Is that
with credit abundant and no serious
accumulation of gooda on hand, the
fundamentals are sound. But rep.
trade boom is not looked for. Where
operating charges have been eating
into profits to q discouraging extent,
producers are likely to attempt wage
cutting. But this 10 . crisis which
win not have to be faced In many In
Ensy to Overrnts FrencA Aeceptanee.
Renewal OF the American otter to
participate In q repArations confer
ence and the acceptance OF this offer
by France are steps in the direction
Of solving Europe's economic trou-
hleS. But their importance FOR the
more immediate outlook may easily
be overrated.
Tho unanimous Judgment OF the
world, apart from France and Bel
gium, IL that Germany cannot pay as
things are now and that It win only
be after q long and tedious recupera-
tion that collections =. on indemnity
account win be possible. In the mean
Tina the French extraordinary budget
charged up as recoverable From Ger
many" seventeen billion francs ex-
pended on the devastated regions last
year. It 10 expected to make = SINH
lar charge this year. These huge
sums are being taken up by French
investors In the form OF short-term
internal loans. So far the Notation
OF these loans has not been dinicuit.
These bond issues were successful
however. because OF the supreme con-
fidence of the French people in the
policy of securing reparations pay
ments by force. What will be the at
titude II II appears. after an impair
tial investigation. that Germany must
be granted q long moratorium, and
that In the end the original war bills
must be scaled down enormously? In
such case will the small French capi-
tAlists show the same Willingness that
they have hitherto to add to their
already treat load OF government OBJ
ligationGs
~ = Copyright. ises.) g.