Show I tACK REASONS I f fOR BLUE TALK Wall VIall St Loses Sight of Many Favorable Conditions Hr BY TL Hl 1 1 n IT 51 oal of oC t The Ill TheS F I COP rIght 1923 1923 0 E E EV V YORK Jun June At 30 30 AI At thu cloe cloce of ot another week eek the state statement nent ment may ma mabe ma be proper properly made again that thaI nothing like so In l e a ad d decline a as that of oC the last three p n on has been seen sen in 11 W all with Ith so little apt cause Stocks have hac como come do down don n In this lime tunc 15 IS 20 and 30 points point and hate ha out the entire gun since the string erring of oC The he Hard up-Hard In ing from Cron March larch last at year to March larch this year ear car was sas a movement dI dis discounting counting the trade expansion with willi ill Sll Ll It meant Co to- to compan company was as plain foreseen tow Now that thU this adan advance adane e hat hai ha ben holly V holly undone the question arises anes whether hether hether the moderately pro pro-pel- oua ous period through which the thc hU bust bust- ne a I- I nes of 0 the cou has been 1 s 8 in Ing for Cor or the last 1 U 1 mOnth nd ha ll b been n a false and andI I h whether h ther it i Is I eco of oC this fact th that t Is behind the recent tall In stocks oo i s JIs ri Si nJ In no other assumption than that the past t years trade ins gainS base ha been would ouId it U bo be pos pos-Ible to Justify i 1 t level leHI of oC tock tock e exchange change prices back to where there here they stood tood a sear year car and a ago The a professional all Sall has ben talking this Ihl last c k one ono might believe that as as so and that while white admittedly n no signs of oC recession worth orth speak speak- speaking speaking ing log of oC have l vet tt et appeared a de- de decline de decline cline clint in trade was sas shortly to set I in that would restore the situation s a It stood at the outset of oC 1922 when hen business was as as still timid and hen earnings were still poor LS GI L l 0 SO O HI HIO 11 O Pressed for Cor reasons for tor any such suchS S Ie lea the W all all street professional t have little to say The They arc are cont con- con Ith aith predicting a sor seasor of oC depre and with talking blue about the future of or the stock mat mat- mar market lcd ket 1 let et they give gic gh c no adequate e h th these thee should happen There are ague ague allusions to the Jabor situation The suggestion has hase e eter eer er been thrown out that it Is on account of oC the wage wag es which h have ve occurred and the fur fur- further fur further ther tIter Increases Increase which are arc threat threat- threatened threatened ened coed the representatives es of or bIg business have let the stock mar mar- market market ket go eo to pieces theay the way ay ay It has S AR CONDITION CO In other quarters much Is said Mid about the lo 10 low selling prices ot of wheat and about the claim of oC the estern estern farmers that when they g get t through meeting their s swollen oHen pay rolls and paying their high transportation charges they III have nothing left on the tho credit sIde id t It If this Is so it Is contended it will be bound to arce affect the buying po er of oC the farming districts and thus show in the business mo ement of oC the next 12 months Also It is said it will ill add gratl to the th determination of oC the arm bloc in congress to push through a a reducing height fi eight rates m and arid otherwise amending the trans trans- transportation transportation transportation act to the detriment ot of the carriers finally there is the consideration of oC uncertainties ahead the coming of oC a a new con con- congress congress con congress gress representation with a much larger tation of oC radicals and the begin begin- beginning beginning beginning ning soon after aCter of or a campaign in tn which I issues Sut's of oC great re g moment for Cor business bUlnes be willbe prominent ML ER fL ER G all all v street ha has been trying to tomake make enough out of oC th the i unC- unC able able features to de defend tend the down down- ward ard movement mo of oC the last few Cew I months It has lot lost sight of oC every every- everything every thing on th the other side of oC the plc- plc pic picture ture 0 O o really hard time for tor in- in inI in industry I and finance his occurred In the past that has not been In- In Introduced introduced In Introduced either bv bY over specula I tion lion price inflation and consequent credit strain over-strain or else elso by n an production Anover-production production over of oC goods with sub sub- subsequent subsequent sub subsequent sequent fall tall in prices and more or orless orless orless less violent curtailment of oC productive tR tive h C activities INO 0 0 O Have we e e either of these t tao 0 e elements in the situa situa- situa situation lion tion now now Certainly there has been i no speculation over 0 in any direction hop tion that has not been corrected by byI bythe bythe bythe the drastic readjustment since Ince I 1 ITch I I months ago there BBS as a danger that merchants and manu manu- manufacturers I in eagerness to r- r re replenish their supplies and provide for tor the future would force Corce prIces up unduly and bring about an ex- ex exI ex excessive I production But this dan dan- dang dan danger ger g r has passed I Prices have ceased going up and since April have ave been slowly com corn comIng corning coming ing down The average price In- In Inde indea In Index dex dea de compiled complied b bv b the bureau of oC labor shows a decline of oC o two per percent percent percent cent during May and the first three of oC June It docs does not need needmore needmore needmore more than a casual reference to the federal reserve statements to dispel any kny ny notion about the suf- suf sufficiency suf sufficiency of oC present credit rest reser cs as csor asor or to get rid of oC any Id Idea that th the s ase of or the last year s has Involved In a a strain upon bank resources A ICE NCE OF or 01 On the question of ot there has hao been an o ot of merchandise the week-end week re- re review review re review view of oC K R G C Dun Co makes makos the following statement which may Inay be betaken betaken betaken taken as authoritative e A A favorable aspect and one that Is being rather widely stressed 1 1 the absence of oC speculative I excess In mercantile circles and of oC over 0 oer- oer overstocking er- er stocking of oC merchandise The hea heay y demands demando of oC the first Quarter quarter ter tar of ot the vear year were almost wholly to cover definite need needs and the outlook no now is the more reassuring because of ot this fact N LABOR SHORTAGE The short shortage ge of labor for Cor which the advised Ill Immigration re- re restriction restriCtion re restriction laws are wholly elble elble elbie 1 is perhaps th the most serious factor actor in the situation This Is tending to force Corce up wages and In certain lines lints to reduce seriously the profit margin available a for tor the tho reward of oC capital Investment But the fact Catt that commodity price hase ha been coming down removes the argument of oC a rising cost coat of oC living which was the mainstay of oC the labor demands three years ago agon J 1 ACTION The one ene danger as a as It IIpp arl at present is that the business community will wUl take what h has i been happening In Wall Wail street treet too seriously It II they construe the tock stock market decline as a tore tore- runner fore runner runner of oC business depression and begin to cancel orders then the I Wail street treet may see ace as- as aci ac accomplished i the end which they pretend to believe Is la Ln view view But But so far there has hu been no I sign that the stock tock market turmoil I reacting unfavorably upon trado conditions except that It may haye hae confirmed the natural Inclination of eC business men after aler tie the over over- overactive overactive over active active buying movement In the first three months of or the year to togo togo toBO go slow Blow with present purchases I NO 11 WEAKNESs POUND The rhe briefly made m de of the f fUndamentals show shows that there Is I IsI no lure weakness in the Industrial lal true true- Iture Lure The Tho elements which have I produced depression In the past a are pasta o not hero here no now It remains remain for tor the forthe country's country business leaders leader to toI this and not to be car car- carried car carried I ried tied away iway b by recent events In Wall Wallstreet Street treet When It has come time to write the he final history of or the 1121 stock market It will undoubtedly be I found Cound that th t much of the trouble say lay y as a was vaa 18 the ease CM two decades ago go with the excessive output of oC oCI ne new securities I tying up much cap cap- cap capital ital itai and overtaxing the normal buying pow |