New-York tribune., 1918-05-28
Tax P respects
Cause General
Drop in Stocks
B a | d win Locomotive
Slumps 9s Points in
Liquidating Market

Bankers and financial men generally
were IN agreement yesterday that it
would be the best thing for the coun-
try at large to have the new war tax
schedule drafted and the legislation
enacted and out Of the way as soon
as possible. Stock market prices, how
ever, declined sharply at the Stock Ex-
change, where the representative in
vestment and speculative issues lost
from l to 9h points on heavy selling,
the days turnover approximating 9o0,-
ooo shares. The impelling factor in
producing liquidation in the security
market, it was asserted in Wall Street
circles, was the proposal that the pres
ent $4,000, 100000 tax revenue be
doubled. Some apprehension was also
caused in stock market quarters over
the reports from London that the Ger
mans had resumed their offensive in
France.
The stock market opened with prices
showing somewhat irregular ten
dency. Subsequently, on the Washing
ton advices that President Wilson
would address Congress on the matter
OF increased taxation, and the receipt
OF the news Of the German offensive.
the market was called upon to take an
increasing volume of stocks. Steel
common declined below 1O6 in the
first hour, compared with close on
Saturday of 107h. Other stocks broke
a point or more, after which the selling
pressure was not so pronounced and
prices steadied. But in the afternoon
liquidation broke out afresh after Pres
ident Wilson had asked Congress spe-
cifically for increased levies on incomes
and profits and luxuries.
Speculative Leaders OF
On the afternoon recession Steel con,-
mon fell to 104A, and closed at that
price, where it showed a net loss of
21s points. On the rise of fortnight
ago Steel sold UP to 113A. The weak
est spot in the market, however. was
Baldwin Locomotive common, which
fell 10 points, to 81: closing 91a off,
at 811s, on dealings of 10000 shares
At 81 Baldwin was 20 points under the
high pricc reached on the recent recov-
cry. Some of the other large declines
were Distillers' Securities. which broke
4?s points, and New York Air Brake,
which lost 5. international Mercantile
Marine preferred declined 45s, Mexican
Petroleum 4, Midvale Steel 81, Sloss-
Sheffield 2h, Texas Company AZ, In
dustrIal aus; ria, Alcohol. g. Allis-Chalmers 3,
money market, and at the Stock Ex-
change call money ruled at to 6h
per cent. Many of the large banks
called loans in order to be in a position
to meet the heavy demands that will
be made on their resources to-day in
connection with the 20 per cent in
stalment due on the third Liberty
Loan. Bankers said that on account Of
the heavy initial payments on the loan
the amount that would be turned in
to-day by subscribers would probably
be less than might have otherwise
been expected. While the instalment
Is being paid on the Liberty Loan the
government will pay off an issue of
%ooo,OOo,oVO OF 4R per cent treasury
certificates of indebtedness put out
last February.
According to the latest available fig
ures, the aggregate payments up to to-
day on the third Liberty Loan amount
to $2,309,9O0o00, or more than half of
the total of the subscriptions.
First Liberty Bonds Rise
President Wilson's statement before
Congress yesterday that it was neces-
sary to proceed Immediately with the
formulation of new tax measure was
the signal for a wave of buying in
the tax exempt 81 per cent Liberty
bonds on the Stock Exchange that car
ried the price at the close up to $3.50.
compared with the previous high for
1918 of $3.50. The strength in this is
sue was in sharp contrast to the weak
ness in the bonds of the second and
third loans, which broke to new low
record quotations. The low for the
4s of 94.50 contrasted with the pre-
vious low of $3.50, while the Az de-
clined to 97.26, contrasted with the
previous low of 97.38. Both the later
issues are taxable, and to this was at
tributed the selling.