San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-10-21
BETTER TONE
DEVELOPS|N
5TOCKNARKET.
Street Taking Saner View
Of Business and Finan-
~, cial Outlook.
eos.
PRICE TREND MIXED
Drop in Individual Issues
Does Not Affect Gen.
eral List.
PRICE TREND MIXED
By STUART =. WEST.

ps - I w
Copyright. sy the San Antonio Light.
New York. Oct. cO.-Wall street has
made progress this week toward a SAN
or view of the business and financial
outlook.
1t has begun to get I'd of the indis-
criminate peSsimism in which it was
indulging and to recognize that unfav-
orable conditions which exist in certain
industries. do not apply TO the situa-
ton as a while. The markets have felt
the. effect of this change. Stocks of
companies in an unsatisfactory bust
ness position have continued their
downward adjustment without prevent
jug others more fortunately situated
from moving IN. Whereas with the
steels, the railway equipments. the
prospect is more uncertain. the related
stocks have been almost at a stand
still.
Manufacturers Cautious.
9lhis is quite is il should be in
market which is gradually resuming.
sitter an interval of unreason, its nor
NAL function of interpreting outside
conditions. Production has Out-ran
consumption in oil. in automobile tires,
IN boots and shoes and leather.
But there has been no general ex-
cess. The business community has not
recovered from its bitter lesson Of three
years ago. 1t is going to an extreme
Of caution in buying only for imme-
date requirements. in refusing TO load
up. with goods which later on it might
find itself unable to sell Mt profit.
e. No Big Surplus Production.
But while this gives rise to an at
ni6sDhere of more or less uncertainty.
it is not sign Of weakness. Merely
SUPPLYING the current demand and not
counting much on forward orders
means very wholesome business
volume rs the accepted data 90 to
show. Moreover. inasmuch as there is
with the exceptions roted-no big
surplus production tn work off. there is
nothing TO suggest the move being in
tePrapted. Tie check. If it were TO
rome. would come from the outs.-a-
fFsm ill-advised agitation in Congress.
~ because business men got it into
their heads that there was danger Of
radical program winning out in next
Tear's presidential camraign.
Higher Costs Not Detrimental.
lust as the relation Of consumption
70 output differs widely as between in
iiyidual industries. so does the problem
NJ high labor costs. The retail trade
has been able TO absorb these increased
expenses without difficulty. compensat-
ing itself by advancing nrices. but not
enough to be felt. In 'manuf~Ctur-
Ing centers. wages have risen more
than the things which the wage Garner
has to buy.
IN the agricultural sections. outside
IL =
The rise in farm prices has outStripped
the rise in most articles which the
farmer needs. The farmers buying
power is therefore larger than it was
s-year ago. These are the reasons
why in the general distributive trade
higher costs have been no deterrent.
L. has been easy to pass them on TO the
public.
Competition Forces Prices Down.
Where there has been an overproduc-
,i9n' it has been impossible TO make
good higher payrOlls by raising prices
IN the contrary. as. we have seen it in
the oil and tire industries. the CONNIE
iit'on brought about by the excessive
,ltput has rapidly forced prices down.
There are other instances where there
hfs been no apparent production
nnd yet considerable increase in wage
Schedules where the result Of tho at
tfnpt to make the consumers stand the
fStra charge. still remain in doubt.
t'pal is one Of these cases and steel is
sh6ther.
In the Fteel trade. however. two in.
leresting disclosures which bear upon
this question were made during tho
week. One was the Republic Iron and
stcel report. showing that despite the
Increase in wages and tho change from
illc twelve to the eight-hoUr working
sav. net earnings wcrc larger in the
third quarter than in the first.
The other is that the largest custom
srs of the steel mills. the. railroads
have broken the deadlock. They have
leased 10 hold off for lower prices and
have entered the market TO do business
,0f 1921. II is interesting to recall
that It was railroad buying which
.nsned the steel market in January.
1922.
Predictions Being Upset.
With tho unfolding of the German
tsisis. prediction and theories which
we're popular six months ago are being
ufset. The currency system has & &c
'smpletely TO pieces and yet has not
brought about the industrial "c0l-
lapse which has been the favOritc
Ehssme of statesmen and economists.
Political and economic affairs have
reached the danger stage. the state OF
recipient revolution, and there are nc
Eisns of the repercurSion pronhesied
fof-the rest Of the world. 1t took 100
marks year ago to make dol. r.
IV,st week il took rs high as ten bill
lon marks. Despite this appalling
Ihrinkage. the latest monthly figures
lhow a decrease Of only S3.000.000 in
q total OF S26G00000 German pur-
thzses from the United States.
Germany Has Buying Power.
The essential point is that Germany
las kept on working and as long as q
country does this there can r. nc
question OF a breakdown. German in
S1stries have suffered enormously by
zoe seizure Of the Ruhr. Still they
have. been able to produce an ample
surplus for export. German shipment,
y the United States. according to ia,
asst monthly statement, were SO. 1000.
boo larger than in the correspondent.
month year ago and $4,000 600. o.
not far from 100 per cent. larger thar
TWO years ago. This explains why Ger
many. despite all its handicaps. is abb
10 preserve buying power in the for
ign markets.