Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-30
Realty Situation in Southern
Part of State Declared
improved.
CURTAILMENT OF OIL
OUTPUT is ENCOURAGING
Growth in Building Permits Re.
fleets Return to Nor
NAL Conditions.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
LOS ANGELES, Calf, March &c.
Viewed from this side of the continent
and with perspective of business con-
ditions that is national rather than
local, the New York stock market of the
last few days impresSeS one as running
bit too far ahead of the improvement
in trade and sentiment that set in a
month ago.
The high record for transactions and
the new average price levels since the
Autumn crash reflect a professional
rather than public promotion of spec
ulation, along the lines adopted just
prior to the first of the series of declines
in october.
Shares Regain Favor.
AS evidence of the degree to which
sentiment has swung around in the past
so days, we have this week had the
strongest markets of the year for oil
steel and motor shares, representative
of the three --LATEST industries of the
period, along with an outbreak in spec.
ulat1on in the public utilities that /:
reminiscent of last September's market
Illustrative of the slow recovery in Sc.
| curtties that have fallen in grace is the
group of investment trust and trading
corporation stocks, whose portfolios are
fat with those shares that have beer
the largest gains lately.
With March ending, railroad earnings
will begin to reflect not only the sea.
Sonal improvement in trade, but the
effects of broadening out of Govern.
ment and State programs of public
works and the expansions by corpora.
tons placed in funds since the money
market permitted them to borrow again
on easy terms.
Altogether the outlook Is promising
and while Wall Street may be follow.
ing its old habit of discounting the
future to q greater extent than condi-
tons warrant, it has ceased to NOPE
over the past. 1t is making its COM
mitments on the warrant of steadily
improving trade, enough credit Il
finance these commitments at mini
mum rates for another 80 days and, II
not betterment in political conditions
abroad, q return to such low interest
rates that more profitable investments
may be made by Europeans in Ameri-
can securities and In dollar bonds than
In many Of their own issues.
Attitude Of Mind Changes.
Southern California, like the rest OF
the country, gradually Is recovering
from the effects of local and national
over-expansion In real estate and in
securities. The further away the
American people get from the terrorS
of last November the easier it is ia
adjust their minds to q constructive
point of view on business and invest
ments and to substitute action fol-
inertia. They find, too, that they are
not so badly Of as they thought-that
they can still afford to travel and
spend money and enjoy the good things
of life.
During November and December and
even into January 1t looked as though
California was to have string OF
empty hotels. The situation at the end
of March is quite favorable, though
not comparable to those OF two and
three years ago. Californians lost their
paper profits and some of their capital
in the panic, but visit to any one of
the stock exchange houses out here,
even as early as o'clock in the morn
ing, is proof that they are back In the
market for what they call New York
stock"
The top Of the real estate boom In
Los Angeles and contiguous territory
was reached about five years ago. In
some districts it occurred in 1924 and
preceding 1928, the average annual
building operations in Los Angeles
were valued at $150,000,00 For the
past two years they were $97, 000, 900
However, the decline from 1928 to 1929
was not so abrupt as from 1925 to 1926.
So the cause of the reaction was not
high money or losses in stock Specula-
ton.
The city did what dozens Of others
throughout the country have done;
namely, anticipated demand for hous-
ing and business facilities that has not
yet appeared and at the same time put
premium on values as extravaganza as
some Of those fixed on industrial and
public utilities stocks and on the shares
OF trading corporations last August and
September. However, in January build
ing permits here were higher; in fact
about equal to the combined totals of
Chicago and Detroit, and the realty
field has trife healthier tone than for
some months. It is still and will be for
some time buyers market.
Oil Restriction ENCOURAGING.
While Southern California was over
producing in the building industry, 1t
was leading the rest of the country in
the output of crude oil. This condition
runs hand-in-hand with the slownesS
of business in this section and for this
reason the progress now being made
In correcting the evils in the petroleum
world greatly heartens those who have
their largest financial stake in it.
After nearly year of attempts to
curtail the production of the California
wells, the rebels among the independ-
entS few days ago came up against a
decision by the Superior Court of the
State which sustained the constitution
atty Of the California gas law. The
effect Of this within comparatively
short time will be to bring down the
States output to $4,000 barrels daily,
or about IS per cent from the allowable
maximum of two years ago. Texas and
Oklahoma both then will be producing
more than California If they continue
at their present rate, though one of the
agreements into which California oil
men entered was that their curtailment
program should have the practical sup
port of producers In all other fields.
Copyright, 1901