The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1917-05-20
STREET CHEERFUL
AS WEEK CLOSES
Market Early Irregular, But
With Firm UndertOne.
RUSSIA DISTURBING FACTOR
Loan and Cable Dispatches Soon
Bring Reassurances.
RUSSIA DISTURBING FACTOR

one Ihe TINS week ~ though wall
Street was about to lose the con-
hdence which 1t had gained in the
previous week. following a long
period OF doubt and uncertainty, the
natural consequence OF the momen-
tous step taken by this country In
entering the world war. The climax
OF nervous strain had been reached,
and thereafter sentiment improved.
The frst half OF the current week
saw an irregular securities market,
but with q firm undertone neverthe-
less. A great deal Of pessimistic talk
was heard. particularly about the
Russian situation.
Conditions over there appeared to
verge on the chaotic. Two members
Of the provisional government re-
signed, following the establishment
Of sort OF dual authority over mill
taFy affairs. The leading generals
rendered their designations, their po-
sition having become quite obviously
Intolerable when the effort had been
made to compel them to submit their
orders to the council Of soldiers and
workmen's delegates. Such q move
was subversive Of all effective disci-
pline. and the dark picture painted
by the minister Of justice in his ap-
peal to the soldiers delegates for the
purpose OF wardinE OF the danger to
Russia's army, caused the utmost
gloom In London and In the United
States.
This was the state OF public senti-
ment on Wednesday, when the Gov
eminent at Washington announced
that II had loaned 500, 900 .0Oo to
Russia This act suddenly convinced
Wall Street that II had taken an
altogether too serious view of the
Russian menace. It was q foregone
conclusion that the Administration
would not loan Russia any such sum
Of money unless It had had the most
definite assurances that the funds
would be used to promote the allied
Interests.
Short Interests Seek Cover.
Such assurances were forthcoming
from the American ambassador at
Petrograd, according to Washington
advices. and almost simultaneously
cable dispatches from London stated
that the cabinet crisis had been
settled, with the acceptance OF the
provisional governments policy with
few changes and the appointment OF
q coalition ministry. There will,
doubtless, be disturbances from time
to time. as may be expected Of
country In the throes OF revolution.
but there IL no evidence that the
people of Russia are SO eager for
peace that they are willing to sur
render their newborn liberties to the
domination OF autocratic Hohenzol-
lernism.
This development Immediately threw
the short interests into conformation,
and they rushed to cover, which, OF
course. sent the market up. Trading
suddenly increased In volume on
Wednesday afternoon, and gains OF
three to four points were recorded on
the day. On Thursday the movement
continued, with intervals of hesita-
ton up to midday, which left but lit
tie net change, but In the afternoon
the upward swing was resumed. with
the steel shares in the lead. New high
records for the year were established
by United States Steel, Lackawanna
Steel, and some others. The copper
stocks also were reused from their
lethargy OF q week or more. There
was Improvement in the bond market,
although the upward movement there
was restricted. The sensational fea-
ture was the violent slump in Russian
government bonds and equally violent
recovery. Ruble exchange also had
some broad movements, the net result
being a rally from below 20 cents to
the ruble to well above % cents.
With IL all, however, there was lit
tie evidence OF public participation In
the trading in securities. Perhaps 1t
Is too soon to expect such participa.
ton, particularly until the revenue
bill IL out OF the way. The measure
as reported to the House OF Represen-
tatives by the Ways and Means Com
mittee aroused a storm OF protest
from one end OF the country to the
other. Representatives from all indus
tries fiocked to Washington to lay
their grievances before Congress at
the public hearings.
Too Soon for Bull Movements.
Doubtless many of these protests
were based on real grievances, but
many OF them well enough illustrate
the fact that plenty Of people have
not yet brought themselves to a state
OF mind to accept wars burdens cheer |
fully. On the other hand, the meas |
ure is probably bad in many features. |
1t is concededly so in the tariff pro-
visions, II not also in the retroactive
principle. 1t Is time that some taxa
ton program IL deci~ed upon. but a
little more delay would perhaps be |
less harmful than to put the present
bill on the statute books without nu-
merous alterations.
While the reversal OF popular fore
boding with respect to Russia forced |
practically stationary market IN.
there were still several elements re- |
naming to detsr outsiders from en-
tering the trading. although Indica-
tions of greater public interest are
already much in evidence. II is still
too soon to look for. an extensive
bull movement One step toward |
that development will have been
taken when people know how much
taxation they must bear Another
will be when the Government bond
flotation Is out OF the way. Subscrip-
tions to date are estimated at some
thing between 5000 900, 900 and 81 .OOO-
100000. These Figures represent the
subscriptions OF banks. wealthy indi-
viduals and yarge Industrial concerns.
The campaign has just been opened
to enlist the small investor and sal
aried employee. That Is where the
real grind comes in, and returns will
perforce be much slower. There
would appear to be little reason 20
doubt, however, that the loan will be
fully subscribed by the time the
books close on June IS. II not over
subscribed. There Is no lack Of will