Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-05-20
BY 1. A, FLEMING.

Just at present there Is a DISPOSE
ton In the business world to go
bit slow. the natural result of the fast
pace with business hitting on all six
cylinders for some months.
The let-up has not reached more
than the precautionary stage. and 1t is
| to be hoped than II will not go much
farther, but business men have mem
cries today that they did not possess
three years ago. the Impressions OF
serious losses on top of llquidating
disastrously large inventories having
| driven home the fact that in the
| midst Of fat years lean years may
come.
There Is no question but what bust
ness is running at nearly full speed
ahead. but there seems to be so much
! talk OF radicalism. so many rumors as
! to the distance that the radical group
! so called, in Congress Will go, even
| to the deriding Of the Supreme Court
| itself. that II Is sure to haye its ef-
feet If not curbed in some manner
and just now curbing is most dlfn-
cult.
Labor is employed to a full 100 per
cent; that is, the skilled and unskilled
| labor wanting to work; but efficiency
and contentment without continual
imitation Of wages does not exist.
| Commenting on this phase of the
situation as ii exists this day, an
| economist says: There comes time
| however. when activity has increased
| so greatly, especially If the supply of
f; new labor Is cut off by immigration
restrictions, that the optimistic re-
| ports that are made by the Depart
| ment of Labor pail little on the
| sensibNities of manufacturers who
| are endeavoring to keep their margin
| of profit safe while labor costs are
constantly mounting.
THE Department of Labor has ap
parently grown used to the feeling
| that it's statistics. II they show con-
| slant employment. are the most en-
couraging documents that can be
issued"
| So great has been the demands of
| industry for labor that negroes are
leaving the south. where their labor
| Is sadly needed, and Joining in manu-
| featuring activities. And the farms
northwest and the plantations of the
south will suffer, while selective i'm
migration might be used to bring in
| trained agricultural workers in re-
| quired numbers.
/ 1t Is next to impossible that there
snail be return of the conditions
! that existed in 1919-1920. There has
been no imitation.
The Federal Reserve Board has not
nor has II any reason to consider in
| cfeasing discount rates. when but
traction more than 25 per cent of it's
great resources are employed. Money
| Is relatively easy, and would be al
| most drug on the market but for
the disturbance to the movements of
! money incident to government financ-
| ing which Is just now withdrawing
! millions from the banks.
the mercantile trade is sticking
closely by its 1s20-2l resolutions. and
/ in doing SO is helping matters along
| nicely.
| There is very little demand from
! merchants for accommodations at the
! banks, as they are replacing stocks
when needed, but keep only moderate
| STOCKS. to lower insurance, less liabil-
| ity TO loss and no injury in the matter
or selcctions-with no serious inven-
| tory liquidation to face should bust
| ness let up.
The precautionary signals have led
! TO a let-up in advance orders In some
lines. Up to date the effects have
Deen rejected more than elsewhere
In the Wall street markets.
Investors Are Holding on,
Investors are holding off in security
markets. in some sections to an ex-
h tent that has been referred to as
giving the rest of the community a
| fine sample of it.
And yet Washington investors have
also been giving an example of their
faith in good public utility bonds in
the mann na. IN INV which they purchased
! ington Gas Light Company and
| Pepco's high-grade IS
Moreover they have gone even
further and have purchase heavily
issue by the Treasury Department.
| 1t is probably the heavy fiotations
referred to that has stated the Wash
ington investor and left our local
stock exchange to suffer through
I dull period.
AS for Wall street it must be ad
mitted that discounting is its most
dominant quality.
The long continued advancing trend
| in stocks was not expected to stop so
Sharply with the merry month of
May but during the month many large
traders quietly admitted to each
other that the middle of May would
find them out and ready to play bear
music.
With the advent of May liquidation
started and II has been severe
That it has gone far is admitted
but the question which the trader
must satisfy himself about is whether
1T has more than discounted the rue
tions of the Senate and its bright
lights in upsetting things with the
coming of the ides of December
Labor will fight any letting down
OF the immigration bars even to ad-
mission of selective workers.
Treasury AZ Per Cents.
The Treasury AZ per cents recent
ly offered proved a most attractive
note. In the first place these notes
are not subject to the one-half of 1
per cent Intangible tax. which imme-
dfately places them on 5L per cent
basis and the further freedom from
the normal income tax will at once
raise their return to better than that
This, then, may be the reason for
weakness in some of the per cent
local bond issues.
1t looks very much as If brokers'
were perfectly willing to let prices on
public utility stocks and especially
shares of Washington Railway go
where they will, so long as it does not
require more than an occasional sale
of ten shares or less to keep the stock
down.
Convention Talk.
1t is time to do some publicity work
on the District bankers convention
or bankers who have planned on GO
ing will forget the dates, which are
June 20 to June "a inclusive, although
the 23d will be the last. day of the
convention proper.