Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-06-18
MONEY RATES STRONGER;
STOCK VALUES LOWER

NEW YORK. June 1S.-That the liberty
loan of 1917 has been oversubscrbed and
that the Wall street market was sustained
to aid in the success is the view of many
traders.
However that may he, the market was
inclined to be soft at the immediate open
ing this morning and some of the wise
operators are inclined to stand from I'M
der on the theory that, for the time being
speculation will rest
The excess profits tax is one of the
chief reasons for the showdown. The
Spectator on the right side for a big
gain will have the greater part Of his
gain taken from him. while a great loss
on the second speculation does not bring
any offset. AS one broker put, TT
doesn't pay to speculate with chances
of so per cent of profits going to the
government"
Another Cause for Hesitation.
Price arrangements on war contracts
between the government and corporations
is another cause for hesitation on the part
of the speculative element
When the proposed taxation legisla-
ton is finally adopted it win give the
cue to Wall street. the activity in
the industrial securities has been based
more than all else on the profits of
making material and producing sup
plies of all and various kinds for the
United States and the allied govern
ments. That a rush of war orders is
scheduled for the near future is prac-
tica1ly certain. and they will come from
both sides of the Atlantic. but if so per
cent of the. excess gains are to be tax en-
as taxes. on a basis of 1912. 80 and
IA as normal years it will surely re-
strict speculation and investment as
we'll
Lackawanna Steel Earnings.
The first year of the war was by no
means normal year. but. quite the re-
verse: an abnormally bad year
Lackawanna Steel Company's earn
charges of s2,60O,O00. exceeding those
of March. the previous record. by
100000 For March and April the
earnings were approximately $50 a
share. The company has recently pur-
chased s2,5OOO00 of its convertible
bonds in the open market.
Steel. steel. steel. This is the cry of
the shipyards of the country. and,
with capacity production speeded up.
the mills are busy to the limit
Call Money Rates Advance.
Call money rates advanced to 6 per
cent. duplicating the high rate of the
year, and some uneaSineSs was shown
on this score.
After fluctuating back and forth for
losses and recoveries in the first two
hours of the session. the market de-
veloped more positive weakness in the
noon hour for average losses of / to
points. with the bears helping along
the weakness by attacks here and
there throughout the list.
Steel common lost / Z. Bethlehem
Steel ~" stock. 3A Lackawanna Steel.
rs; Crucible Steel. e: Atlantic. Gulf
and West Indies 4 points; Anaconda
Copper. i Il; Central Leather. BIZ: In
dustrial Alcohol. rs. and the motors.
after a fairly firm opening, We're weak.
Saxon making 4 new low record, 131.
Air Brake was the firmest stock on
the list. for a points advance on the
good showing made by the company.
Norfolk and Western broke a point to
125. Union Pacific was also a point
lower and Reading ! q.
Fractional declines were in order in
other rails. except Delaware and Hud-
son. which was strong and higher.