San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-09-30
Stubborn Resistance to
u Selling Pressure Is
4. Shown.
PRICE TREND LOWER
Many Shares Approaching
Low Figures Of July
and August.
BY STUART P. WEST.

Copyright. By the San Antonio Light
New York, Sept. 29.-There have
been few developments in the general
business situation during the past
week. The stock market has offered,
on the whole, more resistance to es-
forts to force it down. As prices
have drawn near the low level reached,
once in the first week of July and
again in the first week of August, a
greater degree of stability has been
tshewn.
The most important outside event
was the final announcement that Ger
many had given up passive resistance
in. the Ruhr. The military dictator
ship at the moment has quieted fears
Of a Communist uprising. French and
Belgian currencies rose sharply to the
best figures reached since the middle of
June. Foreign government bonds
were favorably influenced for 4 time,
but in the end gained no ground as
conpared with a week ago.
In fact, outside the exchange mar
ket in which there was an extended
short interest to reckon with, the
Rush surrender has scarcely counted
as factor. The reason is that the
sequel, so far as regards the repara-
tions problem and European rena-
utilization, is quite as much in doubt
4 rs ever. The way is now open for
France to prove her contention that
Germany is quite able to pay in full.
Or the result may be to demonstrate,
as the English believe, and as most
outside economists feel, too, that any
attempt to compel the acceptance of
maximum indemnity, and start collect
ing it, will fail because it will threat
en- breakdown of the German indus
trial structure.
Deadlock Over Steel Prices.
: The main concern in the home mar
kets is still the business outlook in
this country. As was said last week
this is q subject which cannot be
Z treated q a whole. In some lines con-
Fs1itions are profitable. In others they
h Are not. The deadlock remains I'M
y broken between buyers and sellers of
bteel, the former disposed to hold off
Jas long as possible before agreeing to
pay prices which represent a 10 per
4 cent average advance over what they
have beeL paying on old contracts.
The outcome will be either that the
steel companies will begin to cut
prices in their efforts to stimulate new
business, or that consumers will come
in at the present level, rather than
let their supplies run down to the dan
ger point as they did a year ago.
The position is not satisfactory In
the metal trades and some producers
OF zinc and lead have shut down rath-
er than operate when they cannot
make money. The cotton mills are
holding off to sc what effect the new
government report on cotton will have
upon quotations. On the other hand,
with the rise in sugar prices, carry
ing them not far from the high of the
year, the prospects for this industry
are bright. The same is true of the
Tobacco trade and of the chain stores
and other retail organizations.
Price Movement Irregular.
It is also apparent that when It
comes to considering the outlook for
the Wall street markets, the same dis
function must be observed between
groups of securities that is found in
an analysis of their corresponding in
ldustries. This has been shown already
during the last week or two IN the
nAsniy DIlCt L,
stocks like the sugars the tobaccos
and the electrical company shares
having gained while shares Of the au-
tomohile, the rubber and the tire COM
panies and the steels having most Of
them lost. Taking the general bust
ness volume, the enormous travel over
the railroads is trustworthy cri-
terion. Added to this is the statement
by the mercantile agencies that the
main drift of distributive trade is up
ward and that it compares favorably
With year ago.
Pessimism Not Justified Yet.
II the pessimism which is still up-
permost in Wall street professional
circles is to be justified. 1t will be be-
cause of changes in the trade situa-
ton of which so far there are no
signs. Asked for reasons why stocks
should 60 down from what is almost
the lowest level of the year, the an
swer is that before long curtail-
ment of demand will become more
pronounced and that producers will
either have to cut their output or re-
duce prices with the result that COM
pany earnings will decline. This and
the approaching session Of Congress
with the presidential campaign loom
ing ahead, are the main points of the
present "bear" position. On the other
hand. practically every representative
of big business who has spoken pub
1icly has expressed confidence in the
future. taking his stand on the ex-
traordinary strength of the credit
structure and the absence of initiation
and over-production, which are the ia
miliar antecedents of a period of de-
preston.
Relief for Wheat Farmer.
i The latest proposals for dealing with
! the plight of the wheat farmer are
much more conservative than any
Jmade so far. The American wheat
Kaiser finds it difficult with anything
|{ke normal crops in other countries.
y meet the competition in the foreign
4 {arket OF other exporting nations.
Y therefore,. he must look to the home
'rket chiefly. protected as il is by
~ high tariff duty.
vbe latest suggestion coming from
~ northwestern states. is that this
NJ Il be done successfully BY a gov
III lent supervising body which would
he faSner how much of his land
lbe safely devoted to wheat and