The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-12-02
M STREET AGAIN
PART OF AMERICA
WON'T FLOAT BONDS.
I'd Governments Vow Expected TO
Come Into American Money Mar
x~1De& With Application Backed by
fD1cuFities They I>os-cs-
BY BROADAN WALL.

- New York Dec. 1.---Wan Street was
&1D3ectrified this afternoon with the
8neuneement from j p. Morgan 81
- that the short term notes OF the
3Il1s. which drew the rebuke from
H1D4e Federal Reserve Board. had been
I 6Ando ned. The stock market had
VDened strong. but had begun to sell
la1own almost imme diately because OK
sEmeral disapproval of the apparent
ebeilion of the banks. The proof Of
Their loyalty to the American govern
E1nont and its people restored con-
AIaence instantly.
ssss Eteel Reading and the high grade
suunitiona. all OF which had been
dropping. picked up at once and re-
0nmed the upward movement with
which they have recently been trying
10 overtake their true values
VIII Put Up Collateral.
This announcement means that the
01lies will issue more bonds backed
with the splendid collateral that
Averybody knows they possess. Now
chat the banks evidently intend to
attend to their proper business the
matter Of buying the bonds can safely
be left to the unterrihed investors
A new era has dawned for the
American business man for the banks
have been put where they belong.
They are no longer the tyrants or
masters of business. lat its humble
and highly esteemed servants For
the first time in history the United
States government has proved itself
- strong "a the banks.
Now that values can ne considered
ngain, Wall Street wants to know why
certain stock advanced today in the
face Of what many thought was going
to- be a weak market.
Take Montana Power and Ohio
Cities Gas The former controls one
OF the greatest hyrdo-e'ectric plants
/ In the world It already supplies cur
rent for operation of the Anaconda
Copper Company and the city oi
Butte, and has contracts with the
Bt, Paul Railroad.
lat~ 1T expects to make new contracts
to furnish electricity for the mountain
divisions OF the Great Northern and
I the Northern Pacific. and In connec-
ton with that will develop several
more water powers in the Northwest.
Incidentally. its rise is bullish argu-
ment on Anaconda, which controls II.
Furthermore. the development Of
the new water powers and the intro
auction Of electricity on the mountain
divisions of the Northwestern rail-
roads will cali for millions Of pounds
of copper in addition TO the present
consumption. This work will also
call for electrical machinery worth
tens OF millions so that this one enter
prise furnishes inspiration TO n dozen
of the big companies whose stocks are
traded In on the exchange
Coal Companies Profitable
Pittshurg Coal. by It's advance. calls
attention to the tremendous profits
that are being made by the coal COM
panies There Is talk Of combina-
ton Of this company with an import
ant company in the Fast. The real
reason for the advance of this stock
undoubtedly Is simply the fact that
old contracts will expire in a few
weeks to be renewed at the present
high prices.
Strength Of International Paper
contrasted with the comparative
weakness of American Writing Paper
Most people in Wall Street feel that
the pa per stocks have been doomed
almost enough Their strength lies
In the fact that Germany, which can
control almost the whole world g
pa per market. has been shut out by
the war.
Some short selling marked the an
nnuncement that United Fruit. which
Is TO do SIX 900, 900 worth Of financing
some time before May i, 1918, would
probably do 1t with new stock is
sue.
A Railroad stocks were in better de-
mand but perhaps only because in
dustrials were so dull In the early
part OF tho session