San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-08-05
Street Believes Coolidge
Will Follow Late Presi-
dents Program.
WHEAT STILL, PROBLEM
Increased Foreign Produc-
lion Leaves American
Market Surplus.
By STUART p. WEST.

financial outlook will be affected by
the change of Presidents is the ques-
ton Of most immediate interest at
the close Of the week. But in and
out Of Wall street, while there is
some difference of opinion, the pre-
ponderant feeling is that President
Coolidge will do what he says he
proposes to do, namely, follow out
the Harding program. This being
the case. the uncertainties with which
the business community has been
confronted all along. are neither in
I creased nor diminished.
Situation Abroad Acute.
The other factors in the situation
remain about as they stood week
ago. When the French and Belgian
governments rejected the efforts of
Great Britain TO effect compromise
on German reparations, they did
nothing more than the markets OF
the world had expected. A break in
the entente is a possibility which
must be considered.
At the moment the European sit
uation does not seem quite as serious
as it appeared last week at this
time. Germany is doing business as
usual. that is. everywhere outside of
the Ruhr. New low records for
French and Belgian francs emphasize
that the international money markets
Leaving all sentiment or sympathy
out of the Question-are on the side
of England in her present attitude.
They believe that the French venture
IN the Ruhr was a mistake.
Wheat Still a Problem.
Among the domestic problems, the
most formidable are still the unfav-
orable position of the wheat farmer
and the comparatively high costs of
production industry generally. 1t is
certain that with the re-assembling of
Congress the proposition that the
government use its credit for taking
up and storing surplus wheat until
/ the growers are able to secure better
> prices will be vigorously nnskei.
Legislation along this line, however
ill-advised it may appear from an
economic, standpoint, will be very
popular with the politicians and as
measure of political expediency is
quite likely 10 90 through.
But of course this is only putting
off dealing with the main difficulty
which is that wheat production the
world over has been running far
ahead Of demand. The Canadian crop
is the most notable instance. Before
the war il used to average something
less than 200.000.000 bushels. In
1922 it rose TO 400,000.O0O and this
year promises to be close to 100000
900 bushels Europe is producing
much more than it did a year ago
and consequently its needs are much
smaller. The Indian crop is up too,
and it looks as il Russia. after nine
years absence. is about TO re-enter
the markets as a competitor. Under
these circumstances Withholding as
proposed, 206.000.000 bushels of
American wheat from the market is
not going to afford anv lasting rem
edy. Eventually in order to compete
successfully with lower cost foreign
wheat. the American farmer will have
to devote less acreage TO the wheat
crop and go in more largely for bther
crops in which there is less rivalry
and better opportunity for profit.
Other Crops Beside Wheat.
The way Wall street has been
discussing the wheat situation and
its bearing upon the future buying
power of the agricultural states. one
might suppose that wheat was the
only crop to be considered. As it
lis. the wheat harvest represents less
than seven per cent of the total out
put of the farms. The agricultural
department estimated month ago.
taking prices as they stood on July
1. that the total value of all the
crops this year would exceed one bill
lion dollars that N 1922 and by
three billion dollars that of 1921.
This. after all. is the main criterion
for judging the farmers capacity to
buy.
No Basis For Wage Increase.
There is no question about wages
being abnOrmally high in various
lines. The main contention of those
who look at the future pessimistical-
ly is that labor costs cannot be
brought down without a period of
depression.
If the country has reached the
limit of wage increases. as ii is
natural to suppose, the question then
becomes whether manufacturers and
merchants can maintain a scale OF
prices that will not discourage buyers
and yet leave an adequate profit
margin. This is to be tested in the
woolen industry. where, to match last
springs wage advance, quotations on
next springs line of goods have beer
raised IL per cent. 1t is to be tested
IN the steel trade when, changing
over from the - TO s hour working
Gay, the companies will endeavor tC
pass the extra cost over to the con
sumers. The outcome cannot he
judged ahead of time
Railroad Outlook Unsettled.
The railroads, of course. have &
problem of their own which does no
belong to other enterprises. They
are not free to raise the price o.
transportation to meet increase il
costs. On the contrary, it is alto
getber probable that the demand fo
reduction in agricultural freigh
rates will prove in the next Congress
TOO strong TO resist. Wall stree
ezs evidently been looking ahead Il
this possibility in its treatment o
the stocks Of roads which, ever
under present conditions, are eithel