The Washington herald., 1919-11-17
SpECULATI0NIN
STREET AT END
Banks Stand Together In
Determination to Prevent
Wild Demonstration.
ny BRoADAN WALL.

New York, Nov. IL - Wall Street
speus q new week with a market that
has bean purged Of most Of its specu-
lstfvs stocks. The industrials have
been severely shaken and It Is not
likely the offenses that led to the
shake-out will be repeated. Attention
has therefore been attracted to the
railroad stocks which have not had
any movement Of Importance for many
months. These rails are held by the
general public and therefore the move
ment in them will be welcomed to the
public ut large as well as by profess
sional Wall Street.
The bull market In the industrials
may be considered ended except in
special stocks where there are partic-
ular reasons for advances. The high
grade motors and oil stocks are
among those that still have consider
able vitality. Trading in them will no
doubt be limited because the banks
are standing together in their deter
mfnation to permit no further demon
strations Of Importance.
Rail Stocks Question.
Whether railroad stocks will be
profitable as market leaders depends
sn the action Of Congress. Latest re-
ports from Washington are that Con
.gress will eliminate from the new
railroad bill those features that have
been Objectionable to union labor. The
pirit OF compromise Is agreed upon
Everywhere as necessary between
union labor and capital because it Is
evident that both have made serious
mistakes. It is well that things were
brought to a crisis as they were. for
now there is complete understanding
BY everyone
tlnhvu labor has been made to under
stand that the public will not follow
ats radical leaders. but that the public
will respect the course of labor and
xrant IT many favors II II will only
settle down and conform to the pre-
valent opinion OF the country that
what Is needed now Is more produc-
tion and longer working days rather
khsn restricted production and less
labor. The public Is willing to pay lib
orally for production. Only by in
creased production can tbs high cost
pf living be reduced.
Credit CurtaiIed.
As TO the money situation. it is
thoroughly understood by everyone
that there is a curtailment of credit
necessary, but the great complaint in
Wall Street has been that speculation
permitted in commodities whereas
Wall Street Is attacked for using
money that only rightfully belongs to
Z. Wall Street banks are carrying
several billion dollars OF European
credits sold to America as a result
of the war and the presence OF these
credits which are as vet undigested,
~nn1nifRafaa of
Street Is perfectly willing to quiet
4ovn and 1t would not have objected
20 restraint on the part of the gov
ernment the past week except for the
tact that leading banks were urging
he people to speculate up to the very
day that they suddenly turned and re-
used to lend any more money. II
he brakes had been applied gradually
here would have been no criticism
md no hard feelings.
One OF the most important things to
sook forward to now is the crop situa-
ton for next year. The country SIM
ply must have a record output OF all
kinds fof agricultural products if the
boom that so many expect is really to
unateriallze. As there has been sew
sral years OF big crops the law Of
shance is against a big crop in 1920
.rs are therefore necessary to pro-
3uce the desired result.
II union labor does not abate
lone of its demands for shorter
hours the farmers may take it into
heir heads to restrict their output
lso and that would be a calamity
impossible to measure. =
Owners of coal properties need
iaye no fear that the introduction
II oil into big cities will ruin them.
Business is growing so rapidly that
he Introduction -of oil for use in
iouses and manufactures will leave
,lenty of room for coal. in fact. oil
% md coal may well prosper together.
New Rail Policy Outlined.
One point OF the railroad pro-
sram as now proposed is that the
'oadS will be compelled to segre-
gate their industrial business from
he railroad business. Such COM
sanies As the Reading. Southern
9acihc and Great Northern have in
f1stries of tremendous valuation.
che segregation of these tremen-
tous properties would mean the
declaration of stock dividends to
heir holders. or at least giving
hem rights in the new companies
- be organized. There is nothing
BetSer than rights on stocks when
properly handled to accelerate the
market in the stock. AS the rails
ave not moved in many months
Ind are low in price il is entirely
sossible that Wall Street may see
rail market equally in proportion
p the Industrial market just COM
Sleted.
The immediate future in Wall
Street. therefore, may see an i'm
,rovement in the railroad list A
ttronE toned market will also help
ponds.