The Birmingham age-herald., 1917-07-22
WAR STILL BULL FACTOR

February 3, American Can touched a compared with A. the low price touched in the peace scare last December: Ameri- can Locomotive, 625z; Bethlehem Steel, lls' International Mercantile Marine. preferred, 629s Stock not only declined to new low records on the outbreak of the war, but a very large majority of war order stocks have failed, after this country actually entered the war, to get back 10 the high levels that prevailed just prior to December 12, last
 The reason the war order stocks failed 10 respond 10 the actual en- trance of this country into the war is only now becoming apparent. Presi- dent Wilson has made it plain that as long as the war continues he is going 10 do his -best to fix selling prices of all commodities for the pulp lie as well as for the government and our allies Thus the problem, stock marketwise resolves itself int( this; which is best, peace. or war win goy- ernmeht price fixing?
 From the way the stock market aet ea early this week. it is evident that In arriving at an answer to that question, speculative Wall street selected war There are plenty of men in Wall street today however, who are will i ing to predict that it will only be question of time until everybody will
 
 on the right terms. not war is the real bull argument on the stock mar ket The figures quoted above on American Can, American Locomotfve Bethlehem Steel and other war order stocks were shown this week to the i head of large Wall street instltu- l tion, a man who has been remarkably successful in the stock market both for himself and his company. This is what he said:
 | There Is absolutely no doubt in my mind as to which Is best for the stock | market, peace, or war with trovern- ment price fixing. As long as VI were not actually in the war but wer, sell ing supplies to other countries at good profits that was a sound basis for an advance in stock market prices; but once we entered the war then there was complete change in the situa, l ton.
 'To my mind there Is a great delu- sion In this idea that war creates pros- | perity. What happens Is this: John b. | Rockefeller has an income of $50,000,- l 900 a year. In war times rich men like Rockefeller are taxed and the taxes l go to workmen who are making war supplies. thus creating an illusion of | wealth. War brings about a distribu : tion of wealth it is true; but it brings | it about in a destructive way. The money taken away from Rockefeller in taxes to buy war supplies is shot away wasted. whereas in peace times that same money would have gone into something to create real wealth.
 If this war keeps up long enough we all will be crippled financially. On the other hand peace on the right terms would create a worldwide de- mand for basic products. such as steel, Iron, copper, coal and that demand will stimulate and create other busi- ness. Only this week, for exampla, word came from Philadelphia that the Baldwin Locomotives works had on it's books orders for s10o, 900, ,000 largely locomotives. enough business doubtless at good profit, to keep the company running for a year.
 That plant evidently has already made the change from a war to d peace basis. throwing over war orders for its own regular business. Other in- dustrial plants have done the same thing and those plants could make more money with peace than with war and government price fixing. There is not the slightest doubt in mind that peace, not war. is the real stock mar ket argument Wall street. however, has not as yet come to that view point. R. L. B."