The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-01-02
FOR BROAB ACTIVE
NIFTY MARKET N 10

41inaxAs O. sHoTWELL.o

~ York. Jan, Lit Is easy 10
f6n6hA for expecting q broad
Id t6Eutity market In 1919. Some
StDt are found In the action of
11ix net IN the year just closed.
61lfiOn TO these, there are new
81 that can 90 into operation only
IN mo industrial situation Is re-
t96 10 4 peace basis.
y CHIEF reason found in the course
y market IN 1918, for activity OF
Snnrko& In 1919 Is the fact that
n stocks did not discount ths
nsrfui prosperity that had come
5DoSica a. result Of the war. Re-
liable methods were adopted By
o IN control of the bank loans to
1ent . stock market appraisal OF
value OF peace. The result has
~ that prices OF stock never DID
the advance that they normally
I4td have had.
me year 1918 opened with some
XM&t bu0yant movement in railroad
oeks ~ result of the taking over
1control by the government Several
GAtroads were verging on bankruptcy
xlfd would have been In the hands or
S0cedvars had condftions remained un-
&cnGhGed for six months longer. 1t is
1sm an open question whether the
.GSy0rnment will ever turn the roads
k&&k to the private owners and. If so,
3&he4her the conditions wili~be any
k5cr than when They were taken
1NHss This uncertainty leaves all rail-
"a securities questionable invest
Many OF the underlying bonds are
63 course, perfectly safe, but all rail-
ec&d stocks have become highly spec
E35ttve and have become so without
6& S4ving grace of being influenced by
6AkninEs. Nobody knows what any
00q railroad will be able to earn IN.
69E conditions that are liable to exist
f0r the next few years.
H9tua vast percentage of the CAPT
RI Involved In the stock market has
- placed in jeopardy and the vi
452ky OF all security markets has thus
M sapped.
d industrials on their part have been
Nafsely affected by the end of the
0r. Az early as July leaders OF high
112uce who are In close touch with
situation knew that peace
3SS&nld come within few weeks. They
{2N1Rht stocks freely and had buoy
&k market i'm progress soon after the
s6&63nnAns were turned back from Paris.
BEEA public was willing to participate
e1Ae market but using the power
Z the Federal Reserve bank loans
$3.50 limited and the buying and sell
E4x Of stocks on margin was branded
I'm iTsDrO~4, Z not illegitimate bust
tIkatu, 70 rich an extent that the public
4n9 frightened away from Wall street
ffS fich men still hold the stocks. That
~One OF the great reasons why an
|XE$1re market is expected in 1919.
xhe other reasons for believing In
hetter market are found in the
H&6k adjustments being made to
6Sne basis In all industries and in the
E&DeOved outlook for crops The win
wheat crop for 1919 promises TO
G1&k even the wonderful record Of
k&&f4 and 1918 and the worlds interest
farming has been so aroused that
[t1ore Ii little doubt OF records in other
(&S@ee II only the weather be favor-
Hi crops in America will mean
fp3Qmperity because now that the whole
IBxKfd h at peace there Will he an ar-
Eli2aI4ed market for all that can be
fSlnHd. There will be an absence OF
(xaS4 losses that distinguished the last
|&6Nr years.
the war has left one-third OF the
sSr0rad's geld in America. II has left
MIN country further advance in prac-
|4k&nAiy every business enterprise that
E&16puid have been In a hundred years
This country got just deep
|&af6d9h In the war to get all Its bcne
~ but little of Its losses In addi-
Efi0H to that it is the history OF all
|ySSsn that they are followed by bust
ErIeAS improvement
anu. st0p Il m sF kgs IL nothing hat q
N rn5saeter and Thermometer of the
worlds life and as such 1t must regis
Her higher values simply because those
|hyxher values now exist
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