San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-14
UPWARD TREND
IS RENEWED ON
| STOCK MARKET.
|ther Exchange$Also Ignore
Disturbing European
News.
|RANCS COMING BACK
errnan Marks, However,
Reach a New Low for
All Time.
RANCS COMING BACK
By STUART p. WEST.

byright, 1928, by The San Antonio Light.
New YORK., Jan. 13.-The markets
We passed unscathed through the criti-
test of the French invasion of the
bhr. The upward movement on the
Pck exchange, temporarily checked at
Z start of the week, was later re-
med with more confidence than ever.
nd prices, where they moved at all,
int higher. The London stock mar
was quite as serene as our own, and
rling exchange returned almost to its
sh of December, which also was the
;hest since the winter of 1919, soon
Ter the British treasury had with
pwn the artificial support maintained
ring the war.
Cotton, which would naturally be
E most sensitive to anything threat
ing shrinkage in the European de-
md, continued its upward movement
d reached the highest prices of the
lson.
Position of England Strong.
For all this, there are two possible
plantations. The first is that the
lited States and Great. Britain felt
1t their financial position is strong
cugh TO stand IN against any
hntuality on the continent of Europe.
e other is that the new conditions
eated by the French policy of at
npting forcibly to collect the German
lemnity are not as serious as at first
bred they would be.
There is a great deal of truth in
h these assumptions, and they count
cally in explaining the calmness of
market. The fact that French ex-
ange, at the close OF the week, was
lie to recover half what it had lost
ring the downward plunge following
3 brcakOff of the Paris conference,
S significant. 1t certainly did not fit
with SINE of the predictions of week
d two weeks ago, the gist of which
IS that the franc was destined to go
way of the mark.
Business Conditions Favorable.
In no week so far has there been so
Ich testimony Of favorable nature re-
riding the business situation at home.
--s~rs already known, that pig iron
pductiOn in December was the largest
any month since the autumn q 1920
that is, before the period of depfes-
n had really begun.
[rhe statistics for the coaN trade show
1t the December output of bituminOus
eraged more than 1O,0O0.00O tons
week. as against 100000 in the
responding month a year ago, while
I consumption of raw silk was half
ain as large as in December. 1921.
ese three lines are fairly typical of
; state of industry as n whole. Pro
elton has made q full recovery.
The ratio of employed so unemployed
Int capacity is quite as high as it
$ in the ordinary years before the
r. The important question now is
neither the sustained increase of the
{ few months in the industrial out
{ will be followed as is the tendency
periods of recuperation, by an ad-
nee in prices. Already this has &C.
rred in numerous dircctions-for OK
ple, in cotton and wooden goods, in
id and zinc and rubber.
ISignS Of rising prices within the last
ok or so have begun to appear, too, |
steel and copper. Granted a more |
ofitable price level on TOP of the
csent large business volume, the
hrs results in the matter of cOrpOr-
earnings would be very satisfactory.
Railroads Must Buy Equipment.
It is this view which has been back |
the stock market in the rise from
|, low points at the close of NOvem- |
The stock movement during this |
erval has been anticipating a year
reasonably GOOD times in 1923. 1t
been calculating uCon increased |
rnings and increased dividends; that |
for the shares of many industrial |
d public utility companies. The
sitiOn OF the railroads is different, |
cause, while car loadings continue
usually heavy, assuring large gross
reipts, uncommonly large sums must |
spent for maintenance of way and for
A1srcEase of new equipment. More
or. there is the constant shadow OF
kislative interference, Of more regu-
ion and of forced reduction of freight |
hes, without compensation in the |
hDe Of lower wage scales.
with the apparently indefinite post
nement of a reDaratiOnS settlement, |
German mark has sunk TO a new |
". For two months or more, despite |
huge initiation of the paper cur
ncy. the mark had been buOyed up by !
hope that the Allies would get to- !
Tier and reduce indemnity claims |
thin the bounds Of Germany's ability |
pay. Now that this hope has been |
set. the mark has taken the natural |
lrse it was bound to take, following |
constant dilutiOn of the paper cir |
lation.
The seizure of the Ruhr having bad |
political consequences of a serious ma
re, and does not seem likely to have |
important economic consequences. |
will not affect. more than temper
ily, German productive capacity and,
nseuuently, it will not affect Ger
.n ability to buy.
Bad Turn in French Trade.
The recent decline in the franc is, Of
Irse. more associated with the course /
political events, yet economic rea-
rs have also played a part. One of
principal causes of the recovery in |
ench exchange in the early months of |
Il wear was that France had been able |
strike almost a balance between her |
norts and exports.
FTbe latest figures show how this part |
the situation has changed for the /
rise. In November. imports ran ahead |
expogts by 642OOO.OOO francs, where
sen as late as October the import |
=>-zseas only 17l.000,000 francs.
Along with This unfavorablc turn in
foreign trade. a further factor in
Pressing the value of the franc was
undoing, in the last few days Of the ]