San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-04-01
WALL STREET
SPECULATION
IS CHECKED
Rise Not Pushed in Stocks,
Cotton, Foreign Ex-
changes or Sugar.
BUT COMMODITIES UP
Production Reaches Maxi
mum and Still Buying
Rush Goes On.
BUT COMMODITIES UP
Nv STUART p. WEST.

Copyright. py Iue Sah <>iNO4o 's-'
New York, March 31.-Oceurrences
of the past week have emphasized the
check upon speculative activities in
virtually all the markets. This is
true equally of stocks, of cotton, OF
foreign exchange and of sugar.
Wholesale prices have continued to
advance. the last fortnight of March
witnessing new highs for the season
in wheat, steel, copper and cheml-
Gals. But in these instances there
has been no question of speculation
accelerating the upward movement. 1t
has been due to a legitimate relation
between current demand and sup
ply.
The two leading questions before
the business situation at the moment
are whether. the buying rush of the
last two months has not been rather
excessive and, second, what effect the
increase that has occurred or else
is impending in wage scales is to
have upon profit margins.
All data on trade affairs indicates
that. in many lines, production has
/. reached the maximum. Yet it has
been unable to satisfy incoming or
ders and, consequently, prices have
kept on going up and, in certain IN
stances premiums, are being asked
for early deliveries.
Stocks of Goods Replenished.
Most of this buying has been mere.
" the replenishment of stocks allowed
to run down to an abnormal extent
in the period of depression from the
IA nf
But 7 Z danger is that so urgent a
buying movement as has been IN pro-
gress since the first of the year, no
matter how sound the basis, may be
followed by reaction. If prices are
vlshed ahead to an extent sufficient
rid discourage demand, such reaction
would be inevitable.
The weekly iron trade reviews noted
straws along this line when they
pointed out that railway equipment
makers had bought all the steel they
needed for the next six months and
that at least one large pipe-laying
enterprise had been held up in the
belief that better terms could be Sc
cured from steel-makers later on.
Textile Wage Advance Spreads.
A number of the New England cot
ton mills, as expected, have followed
the example of the wooden mills and
advanced wages - IL per cent. 1t
is fully anticipated that before long
this advance will be general in the
textile industries. In numerous other
lines announcements of advance wages
have lately been almost n daily in
cident.
Looking further ahead, the problem
which corporations may have to face
is whether. to balance wage advances,
they can afford to take the chance OF
losing business by further price-rais~
tug, If there is no compensating adj
vai,ce in price, then there will have
to pe decided revision of calculations
that have been made regarding net
profits.
Chose considerations have undoubt-
eslly entered as SOLDERING influence
upon the markets of the week. So
Las the rising tendency in money
rates. On the other hand, the in
sluence commonly drawn regarding the
Federal Reserve conference at Wash
ington is that the governors of these
institutions did not think that there
had been any such expansion in trade
and in credits as to warrant a further
advance in discount rates at this
time.
Whether or not their decision would
have been different had speculationNin
the various markets been keeping on
at the high pitch of three weeks ago
- . ~ interesting subject for cOnjec-
ture. AT all events, the general re-
adjustment and showdown on the
stock exchange and in the other spec
ulative markets has been most salu-
tary development.
Wall Street In Saner Mood.
Wall street has discovered, as it
usually does in all its campaigns. that
most of the gossip furnishing the in.
centive for extravagant bidding-up of
prices has not been substantiated. 1t
is now in a much saner mood and
is in position to debate more calm
ly the facts in the business situation
and their relation to present security
values.
Market conditions are in much
better shape than they were and there
is nothing in the immediate trade
outlook to warrant anticipations of
an important change. But. on the
other hand, the damper cast upon
ficient to make it difficult for Wall
street pools to revive the interest
there was a month ago.
No Strain on Credit.
The most reassuring feature of the
whole situation is that, rapid as has
been the business expansion of the
last six months, il has involved no
strain upon the credit structure. Loans
by banks belonging to the Federal
Reserve are up nearly OO,OOO,OO0
from what they were last summer,
although this is an increase of less
than 10 per cent.
Rediscounts at the Federal Reserve
banks themselves have more than
doubled in the same period, but they
are considerably less than a quarter
of what they were in December, 1920.
These are clear proofs that nothing
in the nature Of initiation, as it ex-
listed three years ago, has yet oc-
eurrnd