Evening star., 1918-07-17
PRICES ARE FIRM
! ON LOCAL EXCHANGE

All of the activity on the Washing
ton stock exchange today came during
the opening and final hours. the mar
ket meanwhile pursuing q rather dull
and narrow course. Final trades were
for the greater part. at maximums.
There was some brisk trading In
Washington Railway n. which held
firmly at es. This utility's preferred
stock moved at 6Gh, although 81 was
being asked.
Capital Traction. which has been
active every day this week. subsided
considerably today. although 1t held
strong. The trading was at 80 IL
and 80 Ia.
Investors Problems.
Some financial men believe that as
most of the governments needs. up to
the present time have been generously
met. as instanced both by the over
subscription of the third liberty loan
and by the prompt payment OF the
June taxes, more liberal support Will
be given to private enterprises whose
financing has the approval OF the
capital issues committee.
Tic SoAhihe hioheAo - 40 ssAA
ticipated that many investnent op-
portunities will present themselves:
that they will be offered on terms
appealing strongly to the business
judgment of the conservative investor.
1t is pointed out that there are many
bonds already in the market which
may rightly be looked upon as proper
and profitable purchases at this time.
However. the fourth liberty loan win
soon be offered to the country, SO In
the face of it all the investor has a
difficult problam to consider.
New Tax Burdens.
The proposed new federal tax legis-
1ation has had a noticeable effect in
the price trend OF municipal bonds.
Unquestionably the new tax burden
heretofore. though it is earnestly
hoped that Congress will devise a
more equitable method of distribution
than the present act offers. In any
event. municipal obligations, which
are free of all federal and local tax
alton. promise to enjoy a continuance
of the recent active demand. AS a
result of this demand prices have
strengthened considerably. In addi-
tion municipalities have curtaile6
their borrowing to a minimum, thus
reducing the supply of. offerings. and
have been rapidly absorbed by the In
vestment public.
Short-Time Securities.
The unusually high rates which
1ong-term credits are now command
ing has forced industrial and other
concerns to care for the bulk of their
financing with short-term obliga-
tfons, which even at high rates, are
more attractive to the borrower. who
hopes that at their maturity long
term securities will be selling on a
basis more favorable to him. In many
instances, too. notes have been sold
to provide for the enormously en-
larged business brought about by the
war. with the expectation of liqu!dat-
ing the issue out of earnings In
consequence of this majority of re-
cent offerings have been of the short
term variety. and at prices to yield
from to ~ per cent, even on the
best Of security.
Loss Of Revenue.
The possible effects which the
passage of the wartime prohibition
measure would have on the country's
revenues is topic of lively discussion
in financial circles.
1t is pointed out by men who are
following the revenue question that
with the proposed increase in taxes
of distilled, fermented AMI vinous
liquors. the total Income of the Treas
.ury from these sources during the ec-
suing twelve months will be nearly
$500. 100000. II the revenue from al
coholic beverages is cut Off in six
months. the total income from this
source for the year would be approx
mately $450.000.00O In addition to
the loss of revenue from the with
drawal of liquors from bond and the
new manufacture of wine and beer,
financial men are figuring on all outlay
by the government to compensate the
holders of liquors now in Dond