Evening star., 1923-01-07
four BIG FACTORS
:. IN PARIS CRISIS
aga
FinancierS See Possible
/ Ways of Pushing Dark
Clouds From Horizon.
NEW SECURITIES TAKEN
-
Review of Week Shows U. S. Busi-
ness Conditions in Strong
Position.
NEW SECURITIES TAKEN
BY BYRON SELLER.
special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 6.-On the
face OF it, the end-of-the- news
from Europe was disturbing in the
extreme. France has decided to pro-
ceed in her own way to collect her
bill from Germany Cooperation
with England is at an end. An at
tempt Is to be made to accomplish
by force what could not be done by
negotiation. British and American
economists are agreed that this is the
policy OF the disaster 1t would
naturally be expected that the mar
ket, both investment and speculative.
would be most unfavorably affected.
A sharp. even severe. reaction would
not nave been surprising. But moth
ing of the kind happened
French and Belgian bonds showed
.Sohe weakness, but not what might
nave been anticipated under the cir
cumstances. Elsewhere quotations
Tor investment securities were
amazingly firm. How is this anomaly
10 be explained? Four reasons have
ns hesn suggested for the apparent in
dlrerence of spectators and investors
: TO the progress of events abroad:
Four Possible Steps.
First-That the markets do NOT
realize the gravity of the situation.
1t sometimes happens that recognition
OF this sort is delayed. Such cases
are rare. however.
Second-That the French will NOT
go as far as they say they will Moth
ing in support of this theory comes
from Paris Foreign CORRESPONDENTS
report active preparation on the part
" Fremler Polncaie for military oc-
cupauon of the Ruhr.
Inlru-That some ont side influence.
VIII be brought TO bear upon the
French to induce them to take more
moderate course. This outside in
Huence is expected by those %ho hold
this theory to originate in Washing
ton.
Fourth-That no matter what hap
pens in Europe the prosperity of the
nited States will not he materialIv
affected. as only a small pari of Amer
!cah business consists of foreign
trade.
Home Outlook Brighter.
w hIch of these explanations is the
correct one can only be determined bv
iuture events. The probabilities are
mat an tour enter into the matter.
IN any case. the fact stands out that
more attention is paid to the bright
prospects at home than to the dismal
outlook abroad
aside from the foreign situation. the
condition to which attention is aIwavs
dra"n when any doubts are expressed
about the business outlook is that Of
ne agricultural population To rem
GaE tne antiquities of the farmers
many proposals are under considera-
ton in Congress. Most of them are
designed to increase credit facilities. |
II IS doubtful whether these efforts
VIII be AS appreciated by the farmers
As the politicians expect
Seek Higher Prices.
Dir farmers Say-what tbe,..or, !
IL not more credit hlIt hiSrhCr
for the products they have to sell. and
not only actually higher prices. but
higher as compared with the costs !
OF goods they have to buy That is
an objective not easily reached by
, Legislation.
Along this line the most radical of
the so-called agricultural bloc pro
pose the creation of a vast federal
buying and selling agency for agri
cultural produce. There is not much
chance of anything like that being
accomplished at this session of Com
gress, in the opinion of those best in
formed, and the merits of such a
project need not concern US yet.
New Securities Absorbed.
Meanwhile new offerings of securi- !
ties are eagerly absorbed. The large
blocks of both stocks and bonds taken
TINS week are the best possible proof !
that the reservoir of funds available |
for investment is far from exhausted |
The $75. 100000 Federal Land Bank Of |
fering is case in point. The merit !
OF these securities seems to be better |
realized by the investment public at !
present. The land bank bonds how !
ever. still yield higher return than ,
the obligations of first-grade munich |
palitieS.
If the Capper bill. which provides
for raising the limit on individual !
loans made by federal land banks to :
$4,000, goes through. there will
! Goubtless be large increase in offer !
ings of these bonds. The present
limit on one loan is $4,000. and the /
larger business has been left to the I
Joint stock land banks. which are
private institutions operated for pri- |
vate profit. Some opposition to the !
joint banks has appeared in the Sen !
ate, but the federal land banks seem
now to be permanent part of our
agricultural banking system.
1t is noteworthy that the invest !
ment demand seems to be inclining