The Birmingham age-herald., 1917-09-09
WALL STREET IN GLOOM

and many other so-called war order shares.
 First it was discovered early in 19lt that because of manufacturing mistakes and the high charges necessary to off set the cost of new machinery, etc. many industrial companies were not making the profits which had been anticipated by the stock market. This years decline in prices was caused by the unexpected ex- cess profits tax against those corpora tions which have made good on the en- thusiastic predictions of 1915.
 But while prices have been declining the position of the war-order industrial stocks has improved because many of the companies have already made the costly switch back to their own business, tlFe annual report just issued by the American Locomotive company, for in- stance showing on June 8, 1917, Sf7,- 620. 4I9 worth of locomotive orders with war orders at only $3565,O30, against $4l,- 642, 600 war orders and only sl9,S76,0O0 To- conceive orders on June 30 1916. The
 importance of the resumption of old busi- ness by the industrial companies can
 not be exaggerated. Suppose peace were
 to be declared unexpectedly overnight.
 That certainly is exactly what is going to happen sooner or later. Imagine such
 situation arising with Bethlehem Steel
 selling at $600 share, the high price for ASeNtN''' N~~
 S1541b; American Locomotive at $74A; New
 ' orll Air Brake at $l64A.
 As a result of the price read1ustment
 that has been going on now since 1913, especially this year. peace has already been discounted stockmarketWlse. In
 brief, it is now being predicted by some of the most far-sighted men in Wall
 street that instead of declining on peace, the stock market, when the news comes, will actually repeat the wild bull rise wit messed in 1915 in anticipating war-order profits.
 There is one more good reason for be- lieying that the stock market has re- certly been making q grand cleanup ot
 all unfavorabie factors From the Wash ington dispatches it appears that the prospects are bright for an adjournment of Congress by the middle Of september, If such hopes arc realized, for the time being at least, all uncertainty will have passed in the war tax to be imposed on individual incomes, on the excess profits of industrial companies, on the amount and interest rate of the overhanglnS gov- ernment war loan In the stock market | declines of the past two weeks all of these unfavorable factors have been dis counted.
 Few of the conservative Wall street houses are advising their clients to take the long side of the stock market. In some few cases, however, it IS being pointed out that the list to be found ot
 rare bargains from the investors view point is a long one. The list includes both industrial and railroad stocks. Ger tainly few chances will be taken in buy ing outright, at the present low prices,
 such dividend paying stocks as American
 Can preferred, American Cotton Oil, American and Baldwin Locomotive pre- ferred, Atchison, Atlantic Coast Line,
 Chesapeake and Ohio, General Electric
 Great Northern, Illinois Centralr Mercan-
 tile Marine preferred, Laekawanna Steel,
 Louisville, Norfork and Western, North ern Pacific, Pennsylvania, Southern Pa cilc, Union Pacihc. R. L. B.