The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-02-24
JDffT FlOORED BY
PRfM|ER'S FRANK TALK
None Of the Facts Brought Out We're
Good Reasons for Anybody
To Buy Stocks.
FINANCING GIVES CONCERN
American Firms Taking Short Term
Notes and Issuing Own Paper Are
Really Violating Spirit of Federal
Reserve Warning.
nv BROADAN WALL

New York. Feb. 2s-Lloyd- George
! speech broke the market today and
II had not recovered from the bRw
al the close Quoted loss YVES not SO
Important as the chilling OF bullish
enthusiasm. The particular point In
Z his speech that caused the trouble was
the remark that food supplies on the
British Isles are now the lowest on
record and that the German subma-
I rine blockade has brought about
desperate condition. just at the close
OF the market announcement was
made that An American missionary
has been killed on a French liner
, which was being shelied by the Ger
mans. In the absence Of further de
tails, this incident, apparently had
no effect on the market
Heaviness OF Westinghouse. GEN
Nral Electric and Midvale were the
features of the DAY. Bethlehem Steel
. bankers announced that all the $50
600, 600 of short term notes had been
. disposed OF Now the field ts clear
for other short term note issues OF
american corporations against which
British short-term notes may be put
ND as collateral Wall street is won
der1rC wnICn OF tNe I1bb iNltt Np'i-
paY,iee will he the first 10 speak,
Given Where Cash Was Due.
The point about the British non
regctiahle two-year notes Is not that
the English credit Is considered bad
hut that they are being given To com
paries where the contracts call for
rash. They are not being taken vol
unfairly and being uon-nee otlabie
fhey cannot he paid out in dividends
1f4
nrier TO get cash the companies must
issue their own notes. II by any
chance the fortunes of war should ga
against the British, American con
: Germs would he In the position Of hay
ing paid cash for supplies that had
been sold on credit.
They are under compuis!on ot 'ss'j-
Ing new fstock and notes 10 suppiN
the working capital thus tied zap and
hopes of large dividends are deferred
This makes British victory an abSo
sfute necessity II the dividends are to
be paid As the short~term notes Is
sued hv the corporations are beng
taken chiefly by banks the recent
Warninc of the federal reserve board
II heing ignored in spirit. For TINS
reason the additional issues that the
Street believes have been planned are
gpirE to attract much attention,
Another thing that made the street
rfutious today was the Introduction
n congress Of bills providing for con
t,ol Of food products in this country
~ the government.
IN Marines Course Criticised
Failure OF 1nterpatiopal Mercantile
Marine company 70 send It's SHIPS 10
sea was much criticised N Wall street
soday because the COMPANY has per
mission from the government 10 arm
:. ships. Refusal 70 let the ships
go 10 sea means 10 the Wall street
rand one 81 two things II means
That the ships have been conmai-
aeered by the United states govern
ment, or u means that The company
does not believe the American gov
srhment will protect American ghts-
Neither OF these things is reason
for buying stocks.
Earnings reported during the iay
We're satisfa ctory Westinghouse ret
II be known that for the nine months
lending December a. II had earned
al the rate ot Is per cent 90 the stock
then oufstandtng. I has inst issued
SIS. 100000 more stock, hut that Will
not paw or the S2I Gao 600 owed to
the banks II Westinghouse has been
compelled TO take a bis block Of Brit
tsh non-negotjabic notes the cash
position or the COMPANY viii need
further strengthening although from
4 credit point OF view il. Is very strong
Industrial Alcohol enjoyed tempo"
rary rally early in the day because
me stock was oversoid but the com
Rl ,on' IN a" '''4'''''< S'''"S ''S'
Eight steel products that are used
- representatives ~ the trade sold
.odsy at an average Of $ES.I9 a ton.
which Is new hlgh record.
Italian exchange broke 10 80,