Evening star., 1923-03-24
uN SIT ART u. W EST.

ID, STUART u. WEST.
Special Dispatch to Tho star
NEW YORK March @4.--1n some
Swo- thirds of the stock exchange list
I5rices are lower now than they were
Il week ago. Fully half the market
has lost ground, as compared with 4
fortnight ago. and quite number OF
issues are either lower or scarcely any
higher than they We're during the
trst week of March. These are sim
pie but quite significant facts They
are the results Of ii month durinS
which at most times. the market has
aDpeartd to he huoyaat and Wal!
Street has been full oil tie most san
;.uine talk and expectations. fArSe
results bear closely on IN" question
Of how far the stock market. III its
rise of last year has dl%couhttd tne
return to comparative prosperity AZ
the Industrial field.
Better Export Demand for Wheat.
More testimony OF a favorable ma
t,re has been given this week regard
ing the business situation than in any
similar period SO far. Everything lita'
~ happened in this direction mas
been encoura@ing. the most impoI tahl
in, idunt being the tnIpr"N "Eltht III y
,Hp"rt 3emaud Tor NNU.t anu Iht ~
SEGMENT ;.GN#uCr III farm p'ittH. ~ i
" Ell that thlS should hhpp'h' tn'.nI
Iuuch a. !; means thA' w ~.
upward SN ing ot prices men Naa ~,
rulled since. The first Of th. year ,.tC
farmer has not been left behind SUI
+rcn the most optimistic trade udla
has found "a large part ot the S'oe"
'''1'Se' TIE stage Ittt has apparently been
reached where good news IN thc
sI,,lre Of maximum producib,on 10 !.
figures and price advances a.1 as nas
ceased TO he stimulating. like II WIS WIS
:. month ago. Most of the individual
sdyances which have occurred during
The last TWO weeks have been tne
work of speculative pools. eXploltius
= favorable earnings position IN par
tiCuIar companies and the pIoS pee
of this leading TO larger diVidehuS.
Time Money Hardens.
Two of the most important harptn-
fr.s Of Tn. week were the fuEthcr
r;.rGcuirg in tFt time money i>'r,
;..ih the wagt adyanc" IN lAt NV
England wooden mills, 80 p',
t. inm&,iate call is. OF course. no
alarming Development. But II aocs
c0mparc with per cent "t1d ~"
lower during the period waen the de
IRENE and when the great uood pt
idle capital released from "ccupa
tlou i'll trade, was pouring mt" it'e
investment market. Tire comparison
t15Ia IL. whole story OF the change
fr5rr tn,, tnthuSia SticallT rising h'hh
luari<et of last spring and summer 10
the dullneSS and persistent sag OF tnS
last few months.
Government bonds Fnh ON.
Government bonds have reached dur
fr,r fhp week the, lowest OF the Year -
far. and the reason Is ahundantlE Clear
When il comes time for tn" next 1r"ao-
ury- issue to take up maturing war pp'-
cations it will not be negotiated ON tnt
terms cf the first postwar Ioti. ~ ~
autumn In other words, money c"ndl-
tions have changed to such an extent
that a AZ per cent government h"hd
n2n no longer be expected I" 60 al par.
TAc market for government bondS
:, hcntIy getting ready for a higher
In tf., meantime che general bond
market. If not materially lower duFihs
,Ac week. is no longer able 10 ahsolh
large blocks at going prices. There y
,,u pressure To- sell, but If there Was
institutions and private investors WIN
;tIA large quantity TO get rId OF Noulu
undoubtedly have 10 make ii subs'ah-
tial sacrifice.
Wages Trend Upward.
The 1872 per cent wage increase
nv rho American Woolen Company
js, by all indication. a prelude TO Il
ruuch mere general advance. y SIM
liar increase, it is known mas IONS
Leen under consideration by the
knowing that this will involve fur-
rher raising of prices. are gong
more slowly about taking new puS'-
ry.=s at current rates. So FAR. TO be
sure the wage Increases. actual anu
prospective. are not large enough t"
bs particularly serious. 1t - the
tendency ever the longer run which
Is the thing of Importance.
Raising Of price schedules because
cost of living is going up is the big
step along the road of infia tion. II
starts the vicious circle going again.
With its series of alternate advances
in wages TO keep pace with prices
and then in prices to make up for
wage advances.
Imitation Must BE Resisted.
It is uncomfortable that this process
should be carried to such lengths Is
il was in the years 1915 TO 1919, for
then the controlling influence in tn"
rice situation was war demand
so necessitouS as to be willing 10
meet the most exorbitamt terms of the
sellers. hut the abnormal stock OF
gold now on hand is a temutation TO
credit imitation which Will have TO be
resisted before the danger stage is
reached. through restrictive action
bH the Federal Reserve Board.
Nall streets discussion of another
iDpendfnE advance in reserve dis
counts may or may not be premature.
l;ut Il is very certain that the reserve
Years ago of what it meant to delay
so long III putting on the brakes.
Francs show sharp Fluctuations.
The strik ing features in the Euro
rcan financial situation have been the
continued stcadinrSs of the German
mark deSpit" The tremendous addition
TO outstanding paper issues and the
sharp fluctuations in French francs.
German note circulation has nearly
quadrupled since the first Of the year
that is. has gone from q little over
4 trilliou to over four trillions. Yet
the mark has. more than doubled in
value since the early part of Febru-
AIRY, and for the last three weeks has
remained virtually stationary. How
long the Reichsbank will be able to
make it's supporting measures effect
i've remains to be seen, but SO fer the
performance has been most remark
able.