The sun., 1918-10-21

in the investment situation to-day nee
the successful sale by this Government
OF the greatest war loan ever floated and
the remittance of the public into the
stock market as large buyers of specu-
lative securities. Our war markets are
fast turning into peace markets. with
the hazards of the coming readjustment
period as the big things to think about
whether the struggle is concluded soon or
not. Marshal F'och has been making his
tory faster than the money pool commits
tee has been restraining It, and II looks
as II the Frenchman would have the
larger following. This Is q Foch mar
ket. and unless the bankers find It neces-
sary to put on the brakes the pace will
become very rapid.
On dozen previous occasions the pub
lie has run away with a market which
professional traders thought could not
advance much higher without powerful
banking support. The fact to be remem-
bered is that the Government loan il out
OF the way. that the great French strate-
gist Is forcing the Germans back into
their own territory as fast as their Grip
pied armies can make the journey. that
the Central Powers are begging for n
hurry UP peace that shall eave the royal
necks. and that the end Of the war, al
though not in sight, has become the
chief topic OF conversation everywhere.
II stock market prices broke rs, so and
40 points during the frantic liquidation
In the war markets OF July and August.
1914, Is It surprising that last week fifty
or sixty railroad and Industrial shares
should have touched a new high level
for the year. with the return of million
share day trading and Hundreds Of or
ders pouring in for peace stocks from
traders in various cities? Wall Street
would not be Wall Street II IL did not
get up some sort Of commotion In such
a situation as that.
Peace Rumors and Readju,tmeut,
The country may have a good deal Of
war ahead of II. and there Is certain to
be more Liberty loans, but the COM
Polling fact is that the lighting has
reached d stage where LOG, 000, 900 Amer
lean citizens are talking peace and pre-
pairing for 1t. This means that from
now on their actions are likely to be
governed by the expectation Of being
able to resume normal business on q
basis which shall provide an immensely
broader foreign demand for everything
that IL made or produced in the United
States. The readjustment process may
bring partial Generalization in some in
| dustries during a period when the coun-
try s,getting back to a beefsteak diet
after faring long on terrapin stew. But
the palmer food conduces to vigorous
thinking Of the sort that will be re-
quired to- solve the problems of the
restoration period. The nations banks
have gained $4,000. 900, 900 in resources
since the First Liberty Loan was noated.
although in the interval they have
helped the government to finance $14.-
oo0.0o0.000 OF bond and certificate is
sues and in addition the record breaking
loan subscribed for last Saturday.
This shows that our banking struc-
ture Is sound and that with wise man
agement the country may be counted
| upon to Withstand the shocks Of the
| restoration period when the forty mil
lion men now engaged in the war en-
terprise return to productive pursuits
The world has never been confronted
with a greater problem than this read
3ustment will involve and the difficulties
which no economist or group OF econo.
mists could forecast. 1t IL fortunate
that the hardships Of the war have made
Vi more frugal and forced US to abandon
many Of the extravagances OF the fools
paradise IN which We were living wher
the world war began. Two years age
the spendthrlft hazard in this country
was increasing in ratio equal to the
|
Steel touched 700 the danger point OF
this movement was reached.
Putting On the Brakes.
Had the banks not applied the brakes
the reaction from the sensational rise II
war order Industrial shares in tn,
autumn OF 1916 would have caused Sc
rious disturbance a few months late,
when the country was forced into tn,
war and was obliged to borrow heavil.
from the market. The banks have 81
reduced loans upon speculative collatera
that that account now stands at vir
tually half the normal volume for th
season, The question is whether tn
money pool committee will permit tn
account to be greatly expanded now tina
the Fourth Liberty Loan has been pro
vided for and the country is showing in
. creased interest in the stock market.
4 feature Of the present situation Is tn
large buying Of our securities by neutrs
markets. which are evidently impresse
with the trend of military events an
are preparing for the restoration o
world peace. These foreign buying or
! ders were an important factor In tn
market last week, and suggested that nc