The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-07-30
business and Finance
by w. ). cousins. Editor The Am.r;e,D,R.
New York, July "a, 1915,

Events in wall Street during the
past few months have been almost il
not altogether, sufficient to justify the
popular impression that the stock mar
ket is but an unrestrained and unres-
tricted gambling center, and that it's
influences have been anything but in
spring to the business interests Of
the country. This would be absolutely
true were it not unfair to ascribe TO
the stock market in general the who'll
ly indefensible tactics of a hand of -,
prlnclpled and INSCRIPTIONS s0ecrint
ors. thus it may be said that The 20
demoralizing aspects of the Furonoo.tt
conflict, insofar as its effect ~
america can be traced, has been tba
lndlscrlmlnate manipulation Of III
stocks of war order industr;, - ne g
many OF which will never prodnca ~
smallest traction of the profits that ara
attributed to them. With every -,
NOR OF war orders, real or fancied
professional operators are on the aIert
TO Juggle the stock of the concerns in
question IN the hope of UNLOADING On
me unSuspectIng public when the
fruits OF their operations are safeI,,
within their grasp. The result is that
while there are individual instances of
quick profits on lucky turnovers thu
average investor has but little onnor-
tunity to come out of the transaction
with as much money as he had when
he went in. Whether or not the ~.
usual plethora of money has contr;-
buted to any large extent to this new
speculative tendency is predetermined
though the general assumption Is that
idle money, like idle children. is not
over-zealous in choosing its companv
Influences from two imnortant
sources may be expected to consider
ably counterfeit these speculative fen
denotes: the banks, which are becom-
ing more cautious in loaning their
funds on war stocks" as collateral
and the managers and directors of The
war lndustrials," who are not anxious
to nave their properties made the foot
ball OF gambling market. The fol-
lowing announcement from a member
OF the Executive Committee of the
Crucible Steel Company made "at
the request of many stockholders
seeking some explanation of the sharp
advance of the stock" is significant:
The common stock is in the hands of
people who evidently intend to hand
1t to others at the highest price at
which 1t can be sold, and this evidently
is the reason for the large misstate-
ments made about war order contracts
Year before last the Crucible Steel Co.
made profit of almost $5000,0O0. Last
year the company made about ST.
OOO,OOO, and was obliged to suspend its
preferred dividend. This year the
company will make not to exceed S.
100000, it requiring $1,750OOO to pay
its preferred dividends. There is out
standing in unpaid scrip and accumu-
lated dividends on preferred stock ST.
100000. With large expenditures
necessary to finish its new plants Gin
Guiding that in Syracuse) | can see no
reason why the common stock of the
company should be able to pay divi-
bends for a good many years or be
worth its present price" Leaders in
the Stock Exchange are agreed that
big sales do not always indicate a
healthy market, especially when the
risks are as great as at present.
The speculative element is also TAX
ing stock in the probability that the
war will be long duration, and that
its prolongation will mean still
greater increase in war orders and
larger opportunities for stock manipu-
latlon. This, however, is not the at
titude of those who make up the great
majority of financial and business
leaders. The best interests of the
whole world, America included, lies in
the termination of hostilities as soon
as the guaranty of a permanent
peace can be given. The war has now
lasted year, and still there is talk of
a long war, probably two or three
years at the least. Against this I'M
certainty of war stands the fact that in
some respects this country has never
been better prepared to go forward in
trade at home and abroad. The path
OF trade, however, is never entirely
smooth in time of war, and financial
and business viewpoint which takes
count of that fact and of other newt
able effects of war, while at the same
time giving due weight to those favor
able factors which underlie the bust
ness situation in this country, is the
viewpoint which commends itself to
those whose interests lie not in violent
market fluctuations, but in the actual
upbuilding of industry, of trade, and
OF credit. Conservative traders are
waiting for President Wilson's note
to the German government. 1t is be-
lIeved that this note will be framed
SO as to end the controversy regard
ing the sinking of the Lusitania and
that the President will notify the Ger
man government that its future action