Evening star., 1924-03-01
BY STUART p. WEST.
Special Dispatch to The Star.

[ Special Dispatch to The Star.
NEW YORK, March 1.-The finan-
cial situation at large has changed
very little during the last week. but
there has been a revision of ideas,
and this revision has resulted in
sounder conception of the outlook.
During the greater part of January
Wall street was letting itself get
altogether too enthusiastic over busi-
!'ness conditions. 1t was talking with
too much assurance about the presi-
dental campaign. 1t was giving an
ear to imitation talk based upon the
high ratio of bank reserves and the
continued flow of gold into the coun-
try.
The consequence was that the stock
exchange campaign was carried too
far. A reaction was sure to come,
and it occurred two weeks ago. when
certain spectators made up their
minds that the public would or could
be scared over the oil scandals being
exposed before the Senate committee.
Whether or not these operators were
able to get away with their paper
profits is immaterial. The main point
is that they have been proved quite
wrong in their statement that the
Washington investigat We're un-
dermining confidence in the stock
market, even though causing nervous
ness and caution.
Market Largely Professional.
Having had the necessary setback,
the market has settled down into a
series of narrow price swings, domi-
mated by the professional element,
and with outside participation small
This Is not to the liking of the Wall
street following. but it Is much more
in accord with the outside facts. Dur
ing the last week or so large num-
ber of corporations have been report
ing for 1923. and some of the results
have been quite out of line with
the expressions Of indiscriminate op-
timism which were the fashion at the
start of the new year. Along with
this two of the leading copper COM
panies passed their dividends. two
of the big rubber and tire producers
came out with pretty poor statements,
and the January railway figures,
showing in many Instances heavy
shrinkage from last year, were dis
! tinctly disappointing.
All this has had Il subduing effect
upon sentiment. 1t has taken the
keen edge off the speculative spirit
of a month ago. But it has not led
to any such revulsion of feeling as
occurred in April. 1923, for the plain
! reason that this year there has been
! no oyerbuying in industrial lines, no
! excited price advance and no serious
! over-Speculation either in securities
or commodities.
Decline of Cotton Notable.
! Che notable episodes of the pas
week outside the stock exchange were
the further decline in cotton, carry
! ing the price down almost 9 cents n
pound below the high of the early
winter. the rise to new high levels in
corn and the failure Of French francs
to rally under what would ordinarily
appear to be highly favorable devel-
! opmentS.
The cotton position is still rather
obscure. After a drop as violent as
that of the last month the stage must
be near. if il has not been actually
reached. where makers of cotton
goods will find il worth while to
start up again. On the other hand. II
, is still true that print cloths and
other lines OF cotton goods are selling
relatively lower than the raw staple.
The question which the market of the
immediate future has to answer Is
whether the cotton mills are willing
TO operate on a reduced profit margin
Ten years ago a succession of three
billion bushel corn crops would have