Evening star., 1923-07-28
World Awaits
Passing of Uncertainties
u. S. Trade Can Prosper Eren Without
German Mafkets--OH Situation
Gloomy--Car Loadings Heavy.

plies. Secondly. the wheat growers in
general, having misiudged world re-
quIrements, are producing to excess.
How far the American farmer has
been led to do this by false hopes re-
garding the effectiveness of govern
ment relief is question. But he at
least has had the chance to see the
futility of the special credit exten-
sions put through Congress as the
favorite measure of the farm bloc.
Assurance of credit facilities to hold
wheat back from the market has not
availed and will not avail to stop the
workings of the law of supply and de-
mand.
Favorable Factors Ignored.
1t was difficult to connect the re-
newed weakness is stocks toward the
end of the week with developments
either abroad or at home. The mar
evidently giving heed only to the un-
favorable elements in the situation.
while ignoring those that were en-
couraginS.
The failure of repeated price cuts
to check the overproduction in oil
admittedly has been disappointing
and has changed the outlook for
earnings and dividends of many of
the oil companies. as compared with
what 1t was in the early spring.
Another weak spot in the situation
is the prospective curtailment in the
buying power Of the western wheat
farmer. Railroads which are de-
pendent upon other crops than wheat
much affected, for the outlook for
corn is unusually good, and farm
prices. as whole. are well above
those of year ago.
Railroads Carriers Will Suffer.
But roads traversing the northwest
ern states where wheat is the big
harvest and where the relative profits
of the wheat grower have more to dc
with determining the general trafic
volume, are likely to be hit. They
have been affected already by the
competition of the Panama canal
They VIII be injured still more II the
next Congress succeeds In jamming
through bill reducing rates on farm
products.
1t is easy to understand why for
these reasons oil shares and stocks
have been freely sold. But 1t is hard
to understand why the weakness In
these two groups should have been
communicated the way it has to the
general list.
The labor situation continues a
troublesome element. but employers
have an argument against granting
demands for increased wages which
they did not have four months ago
namely, a much lower level Of com
modify price and hence a lower cos,
| of living.
Car LOadings High.
| The favorable points in business
conditions, however. stand out more
strongly at the close of the week than
they did a week ago or a fortnight
| ago. First, the figures of railway
| car loadings brought up to the mid
| die of July show a total next to the
| largest of any week in the history OF
J the country.
The Federal Reserve Board states
that while production came down 4
| per cent in June as compared with
| May. 1t was because of the falling OF
in certain Industries like cotton goods
| steel ingot and building construction
| The general volume of wholesale and
| retail trade continued heavy and this
| along with the car loading statistics
} seems clear enough proof that there
has been no serious let-up in gen.
| eral trade.