The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-09
Stocks DEVELOP
STRONG UAOERTONE

New York. Aug. s--war and weather
news gave the stock market strong
undestoue today. but owing to the
slight attendance on the exchange
there was little change in prices
few issues made net gains for the day
bat the chief Improvement was in sem
tment T. s. steel is acting so we'll
that It is attracting a speculative fol-
lowing again Investors have been
quietly absorbing it for weeks The
keen observers are looking for a re-
sumption Of the rise soon
Tobacco stocks were all strong and
the motors were not injured by the an
uoUncement that passenger car pro-
ductou is to he cnriailed 81 per cent
al once
Liberty AZ bonds went to another
new low record. French bonds con-
tinuad strong
Cotton was strong. The crop report
" as about what was expected
Announcement o. the regular divl-
deud and nothing MORE for Railway
Steel Springs caused slight recession
ia she price Of that stock. but only
temporarily for the money is being
used 70 retire all bonds.
Wilson declined more than two
points on small transactions proba bly,
as the result of the proposal that the
government take over the packing In
dustrg. Baldwin was strong.
The change of plans by American
Sumatra directors alarmed shorts in
that stock to such an extent that the
price was rushed up nearly four points
in the early trading II lost that gain
quickly. Slight activity in Tobacco
Products and United Cigar stores ad-
NancEd them more than a point each
All copper stocks were firm In spite
OF the announced disappointment over
refusal OF the government to advance
the price OF the metal beyond twenty
six cents. The governments reason is
accepted as a perfectly proper one
There is enough copper being produced
now by properties that can be operated
with s profit at twenty-siN cents. A
few cents more might bring into pro-
duttIon other mines, but they could
not compete under normal conditions
and they could not produce enough
even now to make a material eontri-
button To metal stocks.
Little stockholders Of the copper
companies need give themselves no
concern over business or worry about
the inside interests being displeased
The copper companies are making very
liberal profits under present conditions
ard when the war is over the world
shortage of copper taken in connection
with the lower wages that will then
prevail, viii continue the good earn
ings for several years a least. Under
modern conditions use OF tremendous
quantities OF steel such as everyone ad-
nits viii be needed for industrial pur-
poses necessarily forces the use of cor
respondingly quantities Of copper. The
future OF the copper stock investments
is eound up in the future steel
The stock market is now compelled
deAnitely to appraise two important
Industrial facts. One is the reduction
Of passenger automobile output and
the other is the complete adjustment
OF the liquor industry. Action of stocks
affected leads the casual observer to
say that these things have already
been discounted They have not. The
reason they have not is that in order
10 discount what Is going on in those
two industries the stocks involved must
have very sharp advances from the
present prices, This is not paradoxical.
WITH the single exception of American
Malt all the stocks involved will be
better off for the change.
Even Malt stockhold will be re-
lieved of their Improbable enterprise
and will have cash for the preferred
stock equal to more than its present
market prics.