San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-13
ver-production Is One
Cause Of Downward
Trend to Market.
pTLooK is FAIR
} Depressing Elements
Present and Credit
Conditions Easy.
By STUART P. WEST.

Pyright. 1924. by Consol. Press Assn.
New York, April 12.--TLe quick
eeptance Of the Dawes committee
port should be regarded as of the
st Importance in the financial sit
ton for the last week. For several
IRIS economic writer's have been say
that the German collapse was the
rst feature in the world outlook.
that German reconstruction would
the greatest accomplishment from
standpoint Of the general business
BID.
There has not been moment where
chances for a solution of European
ficulties have looked as bright as
~ do at present.
No Response From Markets.
The markets, however, have not
ZEN the news with any great degree
enthusiasm because they realize
1t even with the Dawes plan going
fongh the reconstruction of Central
rope it is long ways off. Ger,
ny is the most important customer
the American cotton and copper
|des. 1t means great deal TO
Use industries, for German buying
Nver to be restored to normal. But
w long is it going to take for the
rmans to regain their purchasing
|)acity?
This is one Of the questions which
ses in a practical discussion of
at the achievements of the investi-
ing committees signify for the pres.
market situation. The reason the
rkets have not enthused more is not
.ause they have been skeptical about
rmany accepting or certainly not
.ause they have minimized the i'm
'tance of effccting an economic set
ment in Europe. They have only
that the prospective recovery was
nething too remote to be regarded
matter of first consequence.
Business at Home Not So Good.
The thing of immediate concern is
business situation at home. For
last two months evidence has been
eumulating that expansion was go
ahead over-fast. Too much opti-
SIN was expressed about the outlook
Industrial lines. Too much conf;
bee was expressed over the political
lure. The stock market of January
lecting this attitude went to excess
the side of advance. Important in
stries like steel and automobiles in.
BASED their output extravagantly.
Now it has been disclosed that
Sngs were not as bright as they
kmed three months ago. Consumers
Ne persisted in their policy Of buy
for immediate requirements, mefe-
TNL. -oe,,1N kaa haav, n NJ m IL
lion of a surplus on the hands OF
pducers, resulting first in increasing
|npetition at declining prices, and,
bond, in a curtailment of output.
lis is what is going on in the steel
kde, in the motor industry and in
her representative lines.
Political Situation Changes.
AT the same time political affairs
I've undergone a change. At the
|Ert Of the year nine-tenihs of Wall
Feet was sure that conservative
|hdidate on a conservative platform
build win next November. 1t was
|tturing in rosy colors what this
build mean for general business and
the markets. Now after what has
In happening at Washington in the
1t two months. the feeling is quite
{ferent. 1t cannot yet be said that
Il recent decline in the stock market
Fleets serious uneasiness as to the
Issibility of radical success ut the
BIS. But it can be said that one OF
Il reasons why prices have sunk ito
d lowest of the year, is that influ.
|tial interests in Wall street regard
Il presidential campaign with uncer-
5nty.
/ Wall Street Goes to Extremes.
The downward movement Is, there
Re, quite Ineligible on the double
bund of necessary readjustment to
Hess favorable trade position and a
Is certain political position. On the
her hand remembering how Wall
feet during the last two years has
Fbitually gone to extremes, and has
|er-rated outside business changes
! st in one direction and then in an
her, il is well not to take too seri-
|sly the pessimism which has been
khionable this last week. The ele-
Ents of a real business depression
4, not present. Credit conditions are
b easiest the country has ever
Town.
EThere has been no over-accumula-
N of high priced goods in the hands
merchants and manufacturers, such
helped bring about the catastrophe
1920-21. The whole trouble is that
|ere has been Over-production in GER
I'm quarters and that to correct
|ere has to be a cutting down and
of prices.