The Birmingham age-herald., 1923-12-31
LEADERS HERALD
 MUCH PROSPERITY
tcontinued from Page one)

ahead the course of petroleum pro- duction," w. C. Teagle. president of the Standard Oil company of New Jersey, takes a somewhat optimistic view of the outlook for 1924.
 Throughout 1923,' MT. Eagle said "the volume of business has peen good, but much of it at prices Chat allowed no profit to the producer, re- finer or marketer, unless the latter happened to be jobber with no lia- bilities either as a producer Of crude or a refiner.
 brought about by flush yields in cer- tain Texas, Oklahoma and California fields, MT. Tagle went on to say contributed so generously to the pro- duction from older fields as to mean throughout much of the year daily surplus in excess of consumption oi about 300, 900 barrels. In recent weeks the Powell field has dropped off to we'll under 50 per cent of its maximum output, and the California wells have evidenced falling gas pressure.
 With further gains in consump- tion probable" added MT. Teagle, ii looks right now as though the coun- try should begin consuming more petroleum than it is producing around the middle of next summer. If new production does not upset this esti- mate, there should be a movement of storage oil into consumption the latter half of the year. There has been a decided lift in sentiment in the last fortnight and so far l see nc reason to think that this new op- timism will not prove to be justi- fied.'
 Should Be Banner Year.
 Nineteen twenty-four should be 8 banner year for the petroleum in dustry," declared H. F. Sinclair chairman of the Sinclair Consolidated Oil corporation. Tn the last two years eight major fields have been discovered or brought to their peak of production. Any two of these fields, 10 years ago, would have de- moralized the industry. Naturally production has exceeded the imme- diate demand, but the tide began to turn last summer and consumption should soon exceed production.
 The American public should realize that the present price of pe- troleum products Is abnormally low and cannot be permanently main tained. No industry can be expected to continue operation at loss. It is an economic impossibility. few companies may be making profits but the industry as a whole Is losing money, and has been since 1920. This has resulted in a seeming benefit to the consuming public, but in the long run the unprofitable operation or any basic industry cannot De penell- cial to consumers.
 "A peculiar aspect of the last two years of depression has been that during this period crude oil con sumption has actually increased 33 per cent This fact in itself gives ample assurance that the industry will be able to climb back to nor nal condition and earn reasonable profit"
 Automobile Outlook.
 Tt is not easy at this time to make a forecast very far ahead de- clared Alfred P. Sloan, Jr.. president of the General Motors corporation, nevertheless I cannot see any run damental reason why 1924 should not be at least a satisfactory business year, and I can see many reasons why it ought to be an exceedingly good year"
 There is nothing in my Judg- ment," MT. Sloan added, that would be more constructive than general recognition on the part of both par ties of Secretary Melons proposal for tax reductions. do not think any other single thing would inspire as much confidence or do as much to stabilize business in this country, and it would surely rebound to the prosperity of all classes.
 q do not think European condi- tions are going to have great deal of influence. Of course it is hoped that the situation will be cleared up and. if it does it is bound to have |. good effect on sentiment in this tffltN Nf.ac c-t n garding that situation, as evidenced by yearly visits since the war, IS that irrespective of the financial status of the various governments, the economic position of the indi- vidual is continually improving, and as long as that continues satisfac- tory result is sure to work out sooner or later.
 "Taking it all in all. am optimis- tic as to the outlook for 1924, but believe that caution should be exer- c:sed and especially large enter prises should watch their position carefully. Probably that pertains at all times, but believe 1t especial ly applies to the forthcoming year. Tax Reduction Necessary.
 Prosperity for 1924 is assured if Secretary Melons tax reduction pro- gram is adopted. in the opinion of John w. Prentiss, president of the Investment Bankers Association of America.
 Secretary Melons plan for the reduction of taxes" MT. Prentiss said, "is one of the most progressive and sensible things that the busi-' Eess interests of the country have had before them for years The plan is beneficial to all, injurious to none. It will direct flow of capital from dead investments to live in- dustry. It is an insurance against unemployment It will bring greater