The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-04-26
ANALYzE STOCK MARKET
WAR APPROPRIATIONS
MOST OF VAST SUM WILL BE
SPENT IN U. S.-CROPS
AND RAILROADS.

! Following the first outburst OF en-
thusasm, calm reflection on various
features produced SOLDERING effect,
says the Hayden Stone letter. First
the size of the proposed expenditure
4 is overwhelming Seven billion dol
lars is Il sum SO UNNECESSARILY larger
than has ever before been raised in
this country for any single purpose
that it is no wonder that its first eff
| feet was rather staggering one This
naturally projected the question of
how such stupendous sum was to be
raised. A vision of enormous taxes
presented itself On top Of this was
the probability of government reqli-
sition of supplies and munitions at
low margin of profit, not only for our
selves, but for our allies. Altogether,
some readjustment of IDEAS as to the
earnings seemed in order and this, we
take it, is the process that the market
is now working out. 1t seems not UNI
likely that, in certain issues, it may
go still further.
Will Quicken Industry.
There are, however, counterbalanc-
ing factors that may somewhat or in
some cases, altogether offset these in
fuences. In the first place let us re-
member that the vast sum of money
that it is proposed to raise is not to
be Immediately lost to this country
For the time being, it will be simply
transferred from one owner to anoth-
er. BY far the greater part of it Will
be spent in this country. The eXpen!-
ture of this great sum can not bat
quicken industry in many lines. In
particular instances, as in munitions,
it will mean the extension of a bust
ness which it had been supposed nad
come to an end, and, though the mar
gin of profit may be small, it will be
real.
On the other hand, the necessity If
cutting down personal expenditures to
meet heavy taxes may well mean
diminished income to other industries,
particularly those that are generally
regarded as supplying Injuries as
these presumably will be the most
heavily taxed and will be what most
people will soonest forego.
Lesson of the War.
In a broad way, the plan now en-
tered on means a considerable redis-
tributon of wealth. No doubt, in
Mis- country as has been the case
abroad, the laborng man will come in
for very fun share. 1t will also
mean far greater care in personal eX-
penditures. Here, indeed, is one di-
rect, if. perhaps rather unpleasant
benefit of changed conditions. Sudden
ly acquired wealth puts us in danger
of becoming even greater spendthritts
than we naturally are; if war will
teach us personal economy it will not
be an unmiXed evil.
| All this may sound rather academic.
but it simply means that we are en-
terng on a period of transition. I'M
til the effect of the various cross-cur-
rents can be more accurately gagged.
the market itself VIII reflect the I'M
settlement Of the average mind, but
we do not believe it spells disaster
and a little later will likely respond
to the inflationary effect of great
/ government expenditures.
| Crop Outlook.
There is one decidedly bad piece Of
news in the weeks budget, viz, the
report on winter wheat. If ever there
was "a time when not only this coun-
try financially, but the whole world,
as a matter of Ssustenance, needed
American crops, it is this year. Let
us hope that increased acreage and
later Improvement will make up fol
early poor conditions.
! No financial letter is complete to-
day without a word as to the plight
of the railroads. Within a few short
months these have dropped from at
fluence almost to penury. The In
terstate commerce commission has an
opportunity to render great public aid
by speedy relief in increased rates.
The need is so patent it seems only
reasonable to assume that it will be
granted.
Expect Advance in Prices.
Hardly anyone is so bold as to ar
que that the stage is set for an i'm
mediate great bull demonstration,
There must ensue q few weeks before
our vision is adjusted to new condi-
tons. During this period every ad-
vantage will naturally be taken by the
bear party to test the markets posi-
ton. Every day, however, that earn
, ings continue adds so much to values