The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-02-19
STEEL CORPORATION
BUYS ITS OWN BONDS
Takes Over s23, GOO, 900 Worth From
British Government Illustrating
American Business Situation.
MARKET EXCEEDINGLY BULLIsH
Speculation in Enemy Securities
Now a Wall Street Pastimc--tsood-
rich Stocks Are on a Boom.
ny BRoADAN WALL.

New York, Feb. lS--Nesrly every
stock dealt in by Wall street TO-DAY
showed an advance In price. and some
were materially higher Zinc aud coy
per stocks and luterborough attracted
most attention. Interest was awaken
ed once more in the automobile stocks
by the rems rkable report Of the Good
rich Company. semi Official TepoT,r
from England that the government dih
not intend TO Ak a maximum freight
rate caused renewal OF speculation
in the Marine shares
The piece of financial news o. the
day that made the most impression on
the street was the announcement that
the steel re9rporaupn had purchased
q bout s2S aag000 Of its own bonds froH
the BRITISH. government This was
looked upon ne illustrative of what
will happen in many corporations Tie
Zig earnings now being realized Will
not be paid out in dividends SO much
as they viii be paid out in bols}eFtnG
up the underpinninE Of the big com
panies. Bonds ana notes VIII dlsap-
pear by the wagon load
Ease with which the market re
sumed the upward swing impressed
professional traders and in the after
noon Wall street became quite bullish.
The close was firm with the bear ranks
thinning rapidly.
Copper Sun Prominent.
Leadership OF copper stocks in fha
market TODAY was not surprising
thing In view Of the substantial char
acter aof the copper aiming business
Time WAS when few fnanciers OF good
standing cared to be identlfed With
mining companies. But modern pro
eesses of exploration, Development AM
extraction, have placed copper mining
In "A class b. Itself The big coppet
mines now i- really a manufacturing
concern.
speculation in ENEMY" securities -
giving wan Street a new thrill 'Ene-
my securities are those issued by
country at war and standing in the
name of some citizen OF that country,
Many securities have been c0nhscsted
~ The British government because they
were owned by Germany, But that
does not make an enemy security IN
the Wnll street sense because it does
not affect the value-simply raises
question as 20 the ownership. But
Japanese bond owned by German
does lose some value because Japan
Will not recognize the bond while the
war lasts wall Street traders are buy
ing up such securities at from ten TO
fifteen points below the price at which
the same securities sell when In names
of persons other than enemies The
theory is that after the war such
s@curities viii he recognized and all
back interest paid.
Goodrich is classed among the motor
stocks because its chief business -
making tires and it's strength TODAY
was followed by a streng thening Of the
entire motor list What Goodrich was
TO earn in 1915 surplus of II per
cent on its common stock against BIZ
per cent the previous year. Earnings
now are running at the high rate SO
that they are well above 20 per cent
Influenced by Rusm Success.
Wall Street has been materially In
hueneed BY the capture OF Erzeum bY
the Russians and the prospective cap
4ure by them Of Trebixond. According
TO the Wall Street point OF view. which
intsrprets victories OF the allies az
hullish influences. success of the Rus
sian troops lessons the danger OF
trouble along the suex Canal and in
India.
Butte Superior Is expected TO pay an
extra dividend OF $40 share In the
near future American Zinc Is max
ing such large earnings that liberal
dividends are also expected for IT,