The Washington times., 1917-04-01
FINANCING OF WAR
INTERESTS WALL ST.
With Mind Made Up About Con-
flict, Markets Merely Drift
Through Week.

| Steduy resistance TO pressure
which the professional operators
sought to exert. The reason fs not
far to seek, and 1t requires very little
technical verbiage to explain II. 1t
Is an axiom in stocks. as in every
other form OF marketable merchandise,
that when there is no particular de-
sire either to buy or sell, both trading
and prices stand still. or at best move
slightly. Wherever there was a
movement to buy, even though II was
slight, prices responded Immediately.
This indicated plainly enough that
the market had been well Iiquidated
that those who held stocks were
disposed to hang on to them.
With grave uncertainties hanging
over the market such as the financial
district has had to face In recent
weeks, and particularly this week.
the rule Of sitting tight works both
ways when prices already are low.
Aside from the professional traders,
speculative holdings are light, and II
may be presumed that the few hold
ers remaining see no more reason for
selling out now than they did weeks
ago, or since the break in. diplomatic
relations with Germany. There would
be no advantage in selling at the pre-
| vailing level. There is little, IL any,
| advantage in buying until II Is known
what Cangress will do when IT meets
in special session on Monday. All the
week, therefore, Wall Street has been
marking time
Interest I'm Presidents Speech.
Interest mainly has been centered
In rather idle speculation as to what
President Wilson will say in his ad-
dress to Congress. 1t is not known
how the President stands in regard
to all the questions that will come up
for consideration on Capitol HILL It
is doubtful IL Mr.. Wilson himself has
come to a definite decision as to what
he will say in his message, IL Wash
ington advioes may be relied upon. He
has been credited with a desire to de-
fer framing his message until the last
moment. This Is taken to mean that
events across the water suggest i'm
portant news Developments before
Congress shall assemble. Peace ru-
mors have been persistent First, II
was reported that Germany was pre-
pairing overtures to the new govern
ment In Russia based on autonomy'i
for Poland, the evacuation of Austrian
territory. a Russian protectorate for
Armenia and the internationalization |
OF Constantinople. Second, Russia
was said to be treating with Turkey |
on much the same basis as the two |
last named terms. Reports came from
Holland that Germany was planning |
to offer new peace terms to the en-
-
seek to conciliate the United States
by modifying her submarine warfare. |
These runiors were Incidental to I
the keen interest shown in the ad-
dress delivered by the German i'm |
perial chancellor in the Reichstsg. |
1t was expected that Bethmann-Holl-
veg would have something to say to
America or about new offers OF peace |
with a view to ending the war. But
that statesman. truly representative
of the last stronghold of autocracy
since the fall OF the Gar, was inclined /
to be truculent-
Plans for Financing War.
Evidently the potential power be.
hind a nation like the United States
hopes to get us into the war and then
point to our financial power as a rea-
son for suing for peace. 1t also is
evident that the HohenZollerns are Il
more nearly concerned over the Rus
sian revolution as an example against Il
themselves than they are over the II
present or Immediate phases OF the II
war. As for us, the near approach to
the conflict was directly reflected in
the suspension of business with Ger
many and the refusal of banking
houses to quote exchange rates on
Berlin.
Interest naturally has been directed
TO the Government plans for financing
the war. IL Is understood that the n
business to be done will be
transacted through the Treasury De-
partment and the Federal Reserve
Bank. Temporary financing to tide
over the Treasury for the balance of
the fiscal year to the amount of $780,
100000 was put through by means Of
4 sale OF per cent certificates to
the Federal Reserve Banks, a measure
quite adequate for meeting such an
but scarcely to be thought
1f for extensive amounts at such an
attractive rate of interest.
Interest In Railroad stocks.
The railroad department Of the stock
market was the center Of more interest
his week than for some time past. but
lot altogether on the buying side. In
eality Investors ara beginning TO grow
tesry OF holding the stocks with such
IN uncertain future before the con-
'anies. The report OF President Loree,
4 the Delaware and Hudson. shows
nat on January last there was a total
u foreign holdings of railroad stocks
4 n market v"lIe Of $92i.542.6IG.
II is estimated that in the two yelrs '
etween January 81. 1915. and January
last, some 56.l5 per cent Of the total
oidings were returned to tai, country,
ut between August I. 1916 and January
last only s22s .O76 per value were
eturned. thus indicating a falling OF in
Jreign liquidation. Nevertheless, the
mount remaining is still large. and pre-
pnts possibilities for further liquidation
4 the event Of attractive prices in this
larket. which will operate to keep
rices from advancing very far. no mat
sr what may be done by the Interstate
ommerce Commission with regard to
ne application OF the railroads fu- a
eneral increase in freight rates.