The Birmingham age-herald., 1917-07-01

New York, June 30.-(SpeciaL )-Wall street has been predicting for weeks and months past that as soon as the govern ment had in hand the money from the S2,000, 0000 600 liberty loan bond offering, the stock market would begin to boil in an- ticipation of the war order profits to be realized from government buying of all kinds of war supplies. A large part of the S2.090, ,0oO,0o0 is now available and this week the money was being spent: but for the first time since tins country en- tered the European war there seemed 10 be difference of opinion as to what is going to happen stock marketwise To- day some of the keenest men in Wall street are asking: 'Is there, after all, going to be the fild bull market in stocks, especially in industrials. we have been cxpecting?"
 Those who are beginning to doubt point out that there are now restraining influ- ences hanging over the stock market which only a comparatively few weeks ago were not foreseen or taken into con sideration For example, 1t is now being pointed out that the governments s plans to restrict exports of steel, copper, iron, coal, food. and all war supplies to neutral countries will naturally be a re- straining factor. Likewise it is being ar gued that there can be no good from the stock market viewpoint, in the plans of the government to fix maximum selling price for the war supplies to be manu- factured for this country.
 But the greater drawback of all to the anticipated bull market in stocks 1t was declared in some quarters of Wall street this week. is the overhanging legislation to tax war profits. From trustworthy sources Wall street has learned that the bill now being considered by the finance commiteee of the Senate is not likely to become law, for at the very shortest time six weeks. After the finance com mittee has completed it's work the bill must go to the Senate as a whole and then back to conference with the House, where it originated Speculative Wall street will see, after that law has been passed. around the midSle of August or the first of September, it was maintained by some this week, that the govern ment intends to outdo England in taxing war profits.
 What happened in England to raise war funds by taxation was that industrial companies were allowed to select the two best years out of the three preceding the outbreak of the war, on August l. 1914, and then pay a war tax on all profits exceeding the average of the two best years selected. At first the government war tax in excess war profits was 50 per cent of the amount earned over and above the average for the two years selected i; then 60 per cent: now 1t is 80 per cent. There was no wild, rampant bull mar ket in England, it was argued this week by those pessimistically inclined, because the war profits of the industrial con- pantes were taken away by the govern ment. Similar action by this government, only worse, is overhanging our stock market, was the concluding argument of those wearing blue glasses.
 It must be admitted that such argu- ments are worth considering. especially in view of the fact that instead of ad- vancing this week prices of industrial shares declined. But what can be said for the other side. That question was put this week to the head of one of the very largest investment institutions in the country. When it comes to investments, the banker in question when the occa- sion requires 1t, does not hesitate an in-