Evening star., 1924-01-05
by STUART p. WEST

Special nispatch 10 The Star.
NEW YORK, January 6.-Ths Wall
street dealings In tho drst week OF
the New Year have been In keepins
with tho sentiment expressed In, most
OF the annual reviews, that the salts.
factory conditions obtaining In most
business lines toward the end Of 1s2a
would carry over into lsex.
There has been no suggestion that
the stock market was looking for
ward to q trade boom, but operations
for the rise have been conducted with
quiet confidence In the continuance
Of q large business volume and q
moderate but adequate margin OF
profit. ~ ,..
situation Little CAanxed.
There has been little contribution
IN IN the way OF home business news,
me position with regard to the gen
enaI ta ,sasutton disstrinutton trade. with regard
basic lines. and with regard to rail-
way tramc. remains substantially a
IL mas been for the last month or
more. The steel reviews have stat
e ed tnst the mills were we'll booked
covery has occurred in oil prices. al
though 1t Is not yet clear whether
THIS mas not checked tho decrease in
production which was so necessary
in order to put tho oil Industry in
good shape sgain.
The latest copper statistics are
Iary favorable. although IL 10 still
realized that there cannot be much
ot an eoVance In quotations with
conditions abroad the way they are.
Inc cotton market has been waiting
the staple would have more effect
upon the goods trade this year than
they mad last. At the present mo-
mene this test il still incomplete.
Weakness in ExchanEes.
The foreign exchanges have at
tfacted moro attention than any OF
.ne other markets during the past
week. The decline In the French
franc to considerably the lowest on
record has been a subject Of much
controversy. and so has the weakness
In sterling. Possibly there, are nc
Two critics who would exactly agree
% IN .neir explanation of these move
ognised first Of all. and that is tina,
there Is no similarity between the
causes which have been depreasine 3
inc pound. and those which have beer
depressing the franc. Great Britain
ss mas oaianeed It's budget. even with
which 1t paid last year for interes,
and amortization Of tho American
war debt 1t Is entitled 10 22 per
cent OF the German reparations as
originally fixed upon. but is not de.
penoent upon a cent of this money.
france mas no hope OF q bulge,
balance without reparationa- and Ia,
no thought OF paying anything or
ies debt to- Great Britain ana the
United States until 1t 10 assured Of
getting enough from, Germany. Ths
sfrehcn authorities have. done theil
currency. and have succeeded in hold.
Ing tho increase during the la 81
twelve months to q billion francs
But they cannot hope Indefinitely "a
pie up the internal debt with its &C.
companying enormous interest burden
Where Danger Lies.
The danger lies in the attitude .o1
toward future offerings. when they hay.
seen their present holdings steadily
dwindle In value and the buyin !
power of the francs. which they havt
received in interest payments. Jus
! as steadily diminish.
Financial dispatches from Pari,
are at length beginning to tell tn,
truth about tho decline In the franc
On the way down from to cent?
they were ascrtbing II to 'Germar
manipulation" On the way dowr
thas Il was the WORK aeo OF tse B,,a, ssKin
trying to bring France around e
their point Of view. Now they ar,
admitting that the downward move
ment has gone altogether too FAR &
be looked upon as a piece Of .pecuia'
the French themselves. Of francs ant
the putting Of the proceeds into dol.
lars. The financial world dislike,