The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-09-17
Big Stock Investments
Called Prosperity Sign
Students of Finance Declare Activity on New York
Exchange Shows Public Is Buying Heavily.
Business Outlook Unprecedented.

Eyes Of the American business world
have been centered for the past week
on tho New York Stock Exchange,
where securities have SCARED to new
high levels and all previous records Of
activity have been rivaied.
Several factors, in the opinion Of stu
dents of finance, have played part
in the Inauguration OF another wave Of
investment by the general public. Since
the middle of the past week evidence
has been accommodating to show that
the public from Maine to San Francisco
10 specializing in the stock market.
Tor months the threatened railroad
strike lowered over the country and
lag like a wet blanket on the market
for Industrial as well az railroad Is
sues. While the adjustment OF the diff
ferences between the brotherhoods and
the railroads was far from satisfac-
tory in the minds Of many. the fact
that the question has been disposed OF
for time. at least, strengthened Sc
curities.
Maine Election Helped.
Many other Americans with an ac-
emulation Of a portion Of the pros
perity that has blessed the nation for
more than a year. found satisfaction In
Furthermore, there is reason to believe
that, SO far as direct sales are concerned,
the foreign liquidation Of American Sc
curities resulting from the war has, In q
broad sense. been virtually completed.
The Balkan war brought home many
foreign holdings. and for months after
the present European struggle Gsan
stocks and bonds Of American institu-
lions flowed back to this country.
A large portion Of the present Euro
pean holdings have been mobilized by
the allied governments to be utilized as
collateral for the loans which America
has been, or Is to be, asked to furnish.
The recent $3.50 100000 British loan Is an
example. In that transaction collateral
having a market value of 100000 was
deposited to secure the $3.50. 900 600 issue.
or the collateral one-third. or 100000
600. consisted of American investment Sc
curities which at once removed that i'm
portant amount from the probabilities
OF sale within the two-year period cover
ed by the loan.
Evidence of Business Activity.
Continued heavy payments through
the banks, as reflected In clearing
house transactions, Is evidence that
business Is being maintained In re-
markble volume in every section of the
country.
Total exchanges last week at the
according to Dun's Review, amounting
to "a. 80. s97,lS0. as compared with 1905, :
i61.el3 for the corresponding week last
year and the $2.S21. 500. i54 for the CORE
spending week In 1913. increases. re-
spectively. of I1.9 and $50 per cent.
New York city again reports sub
stantial improvement, clearings at tina
center being 1913 per cent larger thar
last year and 67.2 per cent In excess o.
three years ago. Large increases agaii
appear at every city outside New York
and the aggregate of all points show
gains OF 26.6 and 29.6 per cent. as com
pared with the corresponding weeks II
1915 and 1913.
The trend OF developments in the iroi
and steel trade seems to indicate still
higher prices for both pig iron an,
steel within a very short time. will
the great probability that there will
be an actual shortage in both in tn
near future. Already pig iron is higher
semi-fnished steel has crossed $l5 a ton
steel tubes have advanced 81 a ton, an,
makers OF sheet and tin plates have beef
notifed by the steel mills that shee