The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-23
UNSETTLEMENT
IS |NEV|TA ABLE
Business Bound to Be Disturbed
With Incoming of New
Administration.
JUDGMENT is RESERVED
Finaneiers Unwilling to Say
How Far Uneasines
Will Go.
Especial TO The Timcs.p,,nu,cb.

Special TO The Times Dispatch.l
New York. February 2a.-Nine days
from now Woodrow Wilson Will be-
come President OF the United states,
with Congress Democratic in both
branches, and IL he fulnlls oft-re-
pcatcd promises lie will foster Icgisla-
ton calculated to disturb, at feast
temporarily. the country business ma
chinery
period OF unsettlement is ineyi-
taoic. The strongest Inanciers reserve
judgment on how far uneasincss will
80. and on how much security markets
Will be affected.
let the recommendation is here made
nat ihVcstors--not marginal specula-
tors--should begin to infuire into the
merits or standard stocks with a view
70 making purchases Quotations may
20 substantially lower-the best
opinion Is that they will. hut high
srade thoroughly seasoned issues. pre-.
ictred, as well as common, can be
nouSht to yield about per cent. ana
this Ia as generous return az a con-
sentative investor should demand.
speculation is not advised. The
market IL too mercurial for that; there
arc TOO many disturbing influences &C
lively at work. unpleasant possibili-
ties are In evidence and any unforeseen
diaaster might precipitate a bad Smash
under existing conditions. The death
OK Mr.. Morgan, for example, would up
set things for q time and perhaps wipe
out margins
But temporary stocks would not hurt
genuine investors. those who GUY out
right deposit their certificates in a
safe place and draw in dividends
Excellent stocks to-day yield more
than money That is to say, dividends
or 10 per cent can be obtained,
whereas money is worth at least / per
cent loss. The relative value Of money
and yield on securities is a useful rough
and ready guido TO the attractiveness
OF stocks as investments. Measured By
this simple yardstick. stocks arc not
100 dear at present
Railroad gross receipts our latest
foreign trade returns, bank clcarings
and other, industrial tapelinea show
that the United States is still doing
an enormous volume of business--in-
decd. new high records are shown in
several directions
Nevertheless. optimism has cooled,
business men. following the example
quietly set by hnanciers some time ago.
arc now asking; What will Wilson
do
it EtNG Sl5ltTsi the w llSOn OlIlS
adopted by New Jersey, arc regarded
as portentous.
These fears, combined with pros
pectiyei tariff reductions, are now In
atiilng caution In Industrial and mer-
camille as well as financial circles.
The slackoning in trade threatens to
become more pronounced until the
policy Of tho new administration can
be determined.
a radical Cabinet probably would
rrecipitate a wave of pessimism ann
Wall Streets limitations are that the
men favored by Wilson are conspicu
ously OF that class.
Poor Wall Streets trubles are not
coming singl?. AT the last count eleven
bills had been introduced at Albany
each appareirfly duly Endorsed by Gov
crnor Sulzer-aimcd at the Stock En-
change.
The latest doubles the 81 tax on each
sale of 100 shares OF stock. The pres
ent toll muicts Wall Streets business.
10 the tune OF about s4,o00,000 n year
and the legislators figure that by max
ing the levy 81. twice that sum would
he realized. Such tax would bear
heavily upon traders, while real estate
owners in the lower part of Manhattan
are UP in arms against II, as It would,
they complain ieopardize the return
on their property by throwing thou
An influential protest by New York
Stock Exchange houses and employees. as
we'll as real estate interests. will be
made, and Wall Street believes the jus
tice OF it's case will be recognized.
Other adverse influences have in
cluded the sensational overthrow Of
the Mexican government. the alarming
reports concerning j. p. Morgan's
health and the growing belief that
new financial leaders will have to be
turned to; the passing OF Wilson's anti
trust bills. the capitulation OF the East
ern railroads to the firemen's demand
for arbitration under the Erdman act
and distinct signs that credit has been
curtailed by important banking
groups.
This has led to extensive liquidation
by local and also out of-town holders
OF securities. notably mercantile is
sues placed by various banking houses
not clnssed as members of the SO called
money trust"
Moreover the boarding OF gold
abroad and reports OF commercial en-
barrassnents there have sent up in
tcrest rates there and have caused Eu-
ropean bankers to throw upon New
York tho burden OF shipping many
millions of gold to South America. In
turn, capital has become harder to oh
tain here.
Wall Street therefore is pessmistic.
the air has been cleared until there
has been elimination ~of liquidation
III one or two million share" days.
MI the same the investor can find,
AS already outlined excellent stocks
to Yield him a generous income