Evening star., 1924-05-10
BY STUART p. WEST.
Special Dispatch to The Star.

special Dispatch to The Star.
NEW YORK, May 10-In a sum-
mary of the past weeks financial
events the more important points to
emphasize are the sudden and very
sharp downward turn in French
francs, the drop in time money rates
to new lows for the year and-inti-
mately connected with the money
movement-the general upward tend
ency in investment values.
So far as the stock market was
concerned, very little occurred. 1t
was a drifting market, getting no.
where in particular either way. En-
couragement was derived from the
plan in the Senate and the disappoint-
ing outlook for tax moderation IN
general failed to bring out liQuida-
tion. Also it was duly noted that
stocks were no longer sensitive, as
they had been, to depressing items. in
the trade news.
Financial Leaders i'm Waiting Mood.
Yet, on the other hand, there was
no disposition to attempt anything
fresh on the side of advance Optl-
mistic expressions regarding the fu-
ture, coming from prominent buSl-
ness men, fell quite as fiat as opin-
ions from Wall street sources OF tne
opposite sort. The conclusion TO De
drawn was simply that the financial
community. like the business COM
munity outside, was in waiting
mood There was no feeling OF un,
easineSS, but there was WldeSpf eau
instinct of caution. Ondoupteuly
near approach of the political con,
ventions The result at CLEVELAND
has been pretty well forecast. Al
New York nobody is able to guess
the outcome.
Democrats Have Street Guessing.
What is the Democratic platform
going to say on the subject OF tne
railroads? Will il express ltself lor
the repeal of the Esch-Cummins act
with its guarantee of adequate return
on property investment? VIII the
convention nominate man VINO
would not hesitate thus to throw the
railway situation into chaos ana by
striking at the railroads, deal a bloW
at business prosperity in general!
These are some of the things when
Wall street Is asking at the present
time. 1t has been much impressed py
the coalition between the Democrats
and radical Republicans in congress
and how this has successfully OPP
posed the wishes of the admlnlstra-
ton. The thought in peoples minds
is that this same coalition might OPP
crate in the presidential campaign,
provided the Democrats were TO
choose a candidate of radical tenden-
cies and adopt a program with some
radical plankS in it. Wall street does
not believe that this Will actually
happen, but it recognizes sufhclent
possibility of its happening TO war
rant going very slow in current op-
erationS.
Now IN to Politicians.
If the presidential contest is finally
launched with neither party commit
ted to anything disturbing in bust
ness sense, the prognoSiS is favorable
both for trade and for the markets.
In the few remaining weeks of uncer-
tainty nothing much is expected.
Business has been keeping on with
its readjustment processes. There have
been additional evidences of reduced
acticity in production, and for the
tenth consecutive week Dun'S whole
sale price list shows loss. The price
index is off about 3 per cent from the
first of the year and about Az per
cent from last year.
This decline has occurred in face of
gold imports which for the past year
and a half have averaged some $30,-
900 600 n month. 1t is an interesting &
commentary on the prophecies made
from time to time during this period
that the country was in danger from
a gold imitation" Some whose views
on economic subjects command re-
spect, including certain ones high in
government, were infected with this
idea year ago.
Cheaper Money Not a Stimulnnt.
Another fallacy of the same sort
has been exposed again, namely. that