The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1917-11-24
OUR FINANCIAL STABILITY

Stocks and bonds tumbled to new low records in many IN
stances last week, as a climax of a long decline. Measured by
the fall in prices this was one of the worst panics the New
York Stock Exchange has ever witnessed, but there was no
panic in banking and commercial circles. In former days peo-
pie and banks would have boarded cash and money Would nave
been unobtainable.
AS it was, securities went down, one very rich and promi-
nent business man who had held too many speculative shares
had to make al assignment, thousands of spectators on mar
gin were wiped out, but banks, commercial institutions and
business men pursued the even tenor of their way and, srang-
est of all, according to the old rules of the game, money re-
manned easy, though this is the height of the crop movement
and the demands upon the banks for financing incident to the
turn of the year a few weeks hence will be unusually heavy.
This happy outcome is the fruit of the federal reserve law,
the wisdom of the federal reserve board and the governors OF
The federal reserve banks in observing the spirit as well as the
letter of this great constructive statute, the common sense OF
the public and the general confidence in the banking system
which has stood this severe test without difficulty. No short
age of currency embarrassed any class of business. The days
of boarding cash when the stock market is acting badly have
gone forever. The country has passed through a panic without
knowing it just as the world passed through a comets tail a
few years ago.
Investors are puzzled by the cheapness of securities.
While prices were tumbling many large corporations declared
their regular dividends, payable at the turn of the year, just as
if nothing had happened in Wall street. From all parts OF the
country came reports that business was better than ever, and
the only complaints from trade circles worth noticing were of
shortages of supplies and merchandise.
Railroad reports continue to disclose undiminished gross
receipts and movements of freight, though some companies are
beginning to show the effect of their inability to replace worn
out equipment caused by the excessive cost Of ordinary main
tenance and operation. They do business at a loss because the
interstate commerce commission has hitherto refused to let
untu raise rates Ill pfOpOfIIOn 10 uue cOSL OF duu SUI
plies.
While he uncertain position of the railroads is the most
depressing factor in the stock market situation, war taxes also
cause people with money to hesitate. Internal revenue Off
Gals promise to promulgate a set of rules that VIII clarity the
meaning Of the war reveue bill and TIE corporation tax law.
Congress viii also consider the eight per cen. excess tax OH
earned incomes. Nobody knows just what taxes "big business
viii hav" to pay. Plenty of cock-sure statements have been
published, but the fact remains that the internal revenue Off
Gals can throw no light on the subject and a set of supple
mrntary rules are being prepared at Washington to straighten
out the tangle created by congress.
Stocks and bonds look cheap, and they are cheap if con-
gress does not hamstring the production and transportation of
the country by unwise taxation. Good crops, keen demand for
merchandise, remunerative prices for all staple commodities
and profitable employment for all who will and can work, in
sure prosperity in spite of the war if congress possesses suffi-
cient craftsmanship to finance the war without destroying the
sources of taxation. Russia and Italy are in bad shape and the
end of the war is not in sight, which is another cause for de-
preston in security markets, but it has been overdone. The
London stock market remained firm in the face of these re
verses and New York should act just as well--New York Com
mercial.