Evening star., 1924-09-13
BY STUART p. WEST.
Special Dispatch to The Star.

sPecial Dlspatch to The Star
NEW YORK, September 13.-Be-
tween the high points toward the end
of August and the low points in the
first 10 days of September, the Stock
Exchange went through q consider
abie decline. 1t was sufficient to sat
lsfy those who had criticised the mar
ket IN midsummer on the ground that
IL was going ahead too fast. Also IT
iuinlled. If not completely. at least in
large part, the tradition that a cam
palsn Tor the rise in July and Au-
gust receives a setback in Septem-
Der, more or less severe. according to
the extent of the speculation preced-
ing.
IN the latter part of the present
week some Improvement occurred, but
there stu were no indications of any
immediate resumption Of the main
FORWARD movement upon which q halt
was called at the outset of the month
Wall street Proceeding Cautiously.
The air is full of optimistic predic-
tions regarding what Is going to hap
pen In Europe now that the Dawes
plan has been put into effect, and
how this and other factors are to re-
act upon the business future in this
country. one does not like to depre-
! cate these forecasts. because every
normal person should wish them to
come true. But the danger up to a
fortnight ago was that the Wall
street markets would overdo things,
| that they would take too much for
granted and get too far ahead of
the facts. This danger has now been
averted. The reaction in prices has
been sharp enough to make sentiment
more cautious. less willing to trust
to mere prophecies and more de-
sirous of awaiting the unfolding Of
, events.
Germany having paid in the first
TWO 1nsta .ments on reparatIons ac-
count under the new regime the
program which il is hoped Will re-
suit in the economic reconstruction
or Europe may be regarded as under
way. 1t is right to assume that
restored European buying power Will
De an advantage to the world in
general. How it is going to affect
TINS country Is question admitting
or much difference OF opinion.
Competition Of Europe May He Serious.
Those who predict that recovery
abroad will mean a better market for
American foodstuffs and an expan-
sion in the rest of our foreign trade
may well turn out to have been too
sanguine. In the last 10 years the
Sap between the standard OF living
oi tle american laborer and that OF
the labOrer in the central European
states has been greatly wIdened.
Gc; many and thu various parts OF the
former Austria hungarian empire
nave got used to living IN poverty,
while Americans. from top to bot
tom, have become accustomed to
affluence.
This means Il lot when, through
stabfliZation of the exchanges. these
! nations of central Europe are able
to compete again in the outside
| markets. 1t will take very formi :
liable protective tariffs to keep out the
flood Of low-cost foreign products.
If they are kept out then what good
Is the Increased buying power OF
Europe going to do American trade ?
kurcpe will not buy more from us II
she cannot sell US more. Nothing
in the whole financial conspectus Is
Surer than this.
Return OF Capital to Europe Likely.
Tho opinion seems sound that when
conditions are sufficiently restored
abroad two things VIII happen. First