The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-08
INFLUENTIAL FACTORS IN AN INVESTMENT
MARKET BESET WITH WAR PROBLEMS.
Developments Which Led Security Buying
Wicklow Banks Financed the Semi Annual Div
Payments Other Important Transactions
By WILLIAM JUsrUs BoIEs.

w l. l. "A M J y ~ . % " i
splendid relief measures undertaken
by the board at that time. It Is Of
great Importance, therefore, to pre-
serve the personnel Of this board at
time when sinister influences are at
work to force the retirement Of one of
its strongest members
New War Taxes.
The community has been somewhat
treasured about the new tar law and
the willingness Of those in charge Of the
legislation at Washington to heed the
counsel Of those who believe that
the Government would make serious
mistake II II Increased the tax bur-
den to a point where the prosperity
Of business was imperilled. The SEN
sational charges Of proHteering put
forth by the Federal Trade Board will
probably influence Congress to shift
the burden In some cases. II war
profits are to be taxed the burden
ought to be placed where 1t belongs
instead Of increasing the tax on ex-
cess profits which are almost never
war profits at all. This work should
not be done In a haphazafd way, for
the highest interests are involved and
the hasty putting together OF the pres
ent tax law was attended with many
abuses. Most Of the large corpora
tons have provided for increased taxes.
but the whole country Ia demanding
Intelligent action by the Washington
leaders who are charged with the
drafting Of the new law. In a coun-
try which already raises through taxa
ton a larger proportion OF its war
OUTLAWS than any other belligerent the
effort should be made to distribute the
burden as equitably as possible and
not to enact law which may ruin
some industries and force others
greatly to curtail production. The de-
mand for such conservatism has been
so widespread that Congress will prob
ably heed the adnOnition. Should 1t
ignore the experience Of the other
belligerent Governments and impose
heavy taxation upon n small proper
ton OF the population the result would
BIO highly disturbing. The investment
community, however, is taking
hopeful view. as the success OF the
fiuenced by the putting together of a
conservative tax law.
Strong Trade Undertone.
The country Is doing business eau
| tiously and in volume which indicates
that many Industries will this month
show good gains over year ago.
The situation in this respect Is quite
extraordinary. since the statistics COW
ering business mortality show that the
average merchant Is operating on the
safety first principle in the effort to
avoid the vicissitudes OF falling
market after the war ends. This eau
ton is natural in a situation where
raw material Ia commanding the high
est average price on record and n
growing shortage OF skilled labor has
made It possible for competent workers
to demand an unprecedented wage.
The speeding up OF industry, especially
the war industries, has increased this
confusion and made II necessary for
business men to base their operations
upon the day to day changes OF u
war market.
Financing Business.
Large advances are being made to
manufacturers engaged upon Govern
ment work. These advances at some
centres have been exceptionally heavy.
SO that an immense amount Of bank
funds Is being tied up in such opera
tions. Heads Of some Government
departments have been careful to Sc
cure the prompt payment Of such
bills. In other cases, however, settle
ments have been deferred. with the re-
suit that banks have had to make
large loans to their customers pending
the auditing OF the bills by the Gov
eminent. These delays have caused
irritation In some quarters. and ow-
Ing to high interest charges some
contractors had their profits cut ma
ter.ally. The Treasury ia expending
about s50,000000 a day for war sup
plies for It's own account and for the
account Of our European allies. Since
these OUTLAWS will probably increase
rather than diminish. efforts should be
made at once to expedite the auditing
OF the bills covering work done for
the Government II this is not done
1t will be difficult for the banks to
finance mercantile borrowers and grant
the Accommodation that will be needed
in connection with the harvesting
preparations and the steady growth
OF general trade.
Nations Thrift Fund.
Notwithstanding the increased cost
'of living and unprecedented payments