The Birmingham age-herald., 1923-09-24
PRESENT DECLINE IN STOCKS IS ONLY ARTIF IC|AL, BROWN
Statements Of Men In High Places Show Conditions
 Fundamentally Sound
By WALTER E. BROWN
 Editor New York Commercial. lBy Leased Wire to The Age-HeraId)

(By Leased Wire to The Age-Herald)
 NEW YORK, Sept. 23.-Ever since the present decline in stocks set in last March, with its accompaniment of partial slowing down in bust- ness, the present writer has con- tended that business was fundamen- tally sound. and the decline, there fore, largely artificial
 Current developments are bearing out this view. Statements issued by men in high places who are in close touch with affa irs insist that this is so One of the most recent state ments was that of President Wood of the American Woolen company, who insists that the outlook for his eompany's business is excellent, and hat collections were never better, the latter being a particularly sig uifieant statment. If there were com plaints of collections dragging there would be some reason for little closer examination of underlying conditions. Car loSdings continue to break records and commercial loans al the banks have increased to 8 point that can only be interpreted in the light of an active condition uf general business.
 < brief backward glance will re- veal the basis for considering the reaction as artificial 1t had its in- eeption in the collapse of oil values following the revelation of over production in the California fields It let loose 8 bear raid upon stocks which had the effect of impairing confidence in stock market values generally and at least checking the advance. At about the same time Secretary Hoover made the recom- laendation that government building r1a n al because enormous demands made upon laoor and materials for private enterprises. sugar Prices Up.
 The department of commerce made public it's report on the sugar crop which had an immediate effect upon the general market. Prices under went rapid advances, sensational newspapers raised a great outcry' politicians started all sorts Of ln- vestigations and the government It. self, through the department it. tice, began It's spectacular stae against the sugar exchange.
 By now the buyers strike was sup posed to be in full cry, except that if didn't matenailze. It had tho eff feet of soaring textile buyers who were afraid that the public would not take finished goods at the h1gner prices that would have to De asked on account of the increase in raw materials. The writer has insisted that this was an unfounded fear, be- cause buyers do not refrain from having legitimate prices when they have the money to do so. Hence as long as labor is well and profit ably employed the buying power exists. and the buyer must allow Tor reasonable costs of production. There las been no buyers strike anywhere worthy of the name.
 O O O
 FuII Confidence Felt.
 In banking circles. aside from the demoralization in the oil industry, which Is something entirely apart from the general economic situation, and allowing for the slump in the steel industry, there is full confi- dence in the industrial situation with the possible further exception of the automobile industry. As to the last this doubt is not shared by ihe manufacturers themselves who continue to report record production of standard makes of cars
 There is also the prospect of in- creased buying power to come from the south in the higher prices for cotton. Despite the low price for wheat, the grain farmers have pretty good buying power, for corn and other products have every indi- cation of being profitable.