Current Situation

The past week was accompanied by rumblings and uncertainty in both Congress and the stock market, and by an unusually large number of annual corporation statements covering the year 1923. Yet, even in the latter, it is difficult to detect any real consistency. While Studebaker and American Locomotive show unusual if not record prosperity, it has been very lugubrious news that has come from Central Leather and Kelly-Springfield. Business is undeniably spotty; very prosperous in some directions, quite the reverse in others. Moreover, in many industries, notably the coppers, it all depends upon which companies one looks at.

It is, however, always important to remember that by this time annual statements for 1923 are practically ancient history. They indicate whether the given company has a strong or weak cash position, but they give little hint as to present operations or future outlook. While sentiment is divided between optimism and pessimism, the perusal of these statements is valuable in gaining perspective; they cannot and do not furnish much of a basis for future predictions.