Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-11-17
SENSATIONAL RISE
IN STOCKS FEARED
Adding $4,000, 900, to
Paper Values in Ten Days
May React on Trade.
BY j. c. ROYLE.
Special Dispa tch to The Star.


NEW YORK, November 17.-Busi-
ness men throughout the country are
anything but unanimous in enthusi-
assn over the sensational advance in
stocks in Wall Street in the last 10
days. This advance, it is estimated,
has added some $1,000, 300, 900 to the
paper value of the securities in ques-
ton. Business has improved, but it
Is the general consensus Of opinion
among the conservative that it has
not improved sufficiently to increase
the assets of about 400 companies by
$4,000, 900, 900. not to provide for the
payment of dividends on that increas-
ed amount.
This premise leads inevitably to the
conclusion that either stocks Of the
companies in question were too low
prior TO November or they are too
high now. In any case some business
men see readjustment necessary,
which will have a certain effect on
the volume of trade.
Worry Over Imitation.
Imitation" is a word that has not
yet lost it's terrors for American
business men. They felt the disas-
trous effects of the imitation of 1920
for three years after that time. They
feel that they have finally gotten
conditions back to a normal basis
with consumption close on the heels
of production. Therefore they do
not look with favor on anything that
would tend to force unwarranted
expansion.
1t is logical to believe that if an
increased paper valuation of $1,000
10000 on the stocks dealt in on the
exchange is followed by a demand
for dividends on that sum, which, at
per cent would mean the paying out
sNf 4 N
mand would be made on companies
whose stocks are not bought and
sold in Wall street.
Higher Prices Opposed.
Compliance with move for ex-
pansion of such sort probably
would lead to higher prices The
public not only has shown stubborn
resistance to high prices. but an
ability and Willingness to do without
goods rather than to pay them. Mer-
chants and manufacturers, therefore,
are anxious to avoid anything that
might tend to check buying, especi-
ally at a time when the purchasing
power of the country is high and
when farmers have money to spend
for the first time in years.
In addition. higher. prices for
products might well he followed by
a move for higher wage scales, and
an undoing of the results which it
has taken all the years since 1920
to accomplish.
Gradual Advance Preferred.
No matter what the business men
Of the country think of the recent
Wall Street developments, however,
they are practically d unit in the be-
lief that conditions throughout the
country warrant period OF sane,
l.. .1Vl
growth. one thing the flood of
money poured into Wall Street has
shown is that there is no lack of
capital available for Legitimate and
warranted expansion of industry
Executives in widely varied lines
agree as TO the outlook. Il r..
Deupree of the Proctor & Gamble
Go. said today: Business. il seems
to me, will settle with a tendency
toward steady buying. We look for
an improvement in soap sales and
feel confident the future will bear
out this optimism. The soap Indus
try as whole will move forward
IN positive way"
Confidence I'm Future.
II. Z. Cheney, silk manufacturer,
said: Business relies for its activ-
tiles upon confidence in the future
Many businesses and business people
will now be ready to go ahead with
out fear"
Joseph H Cohen. chairman of the
committee on education of the Gele-
tin Manufacturers of America, de-
clared: encouragement by the United
States to Europe will tend to raise
the standard of living in Europe
Foreign competition, therefore, will
not be so corrosive. Confidence and
progress and profit in the gelatin
business is before u.s.
In the meantime, most business
men are going ahead without regard
to the fluctuations of Wall Street.