Evening star., 1919-12-28
RAIL RETURN news
FEATURES MARKET
Definite Remedial LegisIa-
ton Needed. However. Is
Expert Opinion.
By the Associated Press.

NEW YORK December 27.-An-
nouncement that the transportation
systems of the country are to be-
turned back to private operation
March easily oVershadowed all
other developments in what was Vir-
tually the last week of a memorabl
year in the stock market
To that extent il was argued. un-
certainty regarding the future of the
railroads has been dispelled. Operat-
ing officials and bankers concurred.
however. in the opinion that nothing
less than definite remedial legisla-
tion would restore the railroads 10
the confidence of investors.
Other Features.
The only other outstanding fea-
lures were the recurrent Tightening
of the call loan market the dearth
of time money and another reaction
in foreign exchange. These were due
10 such patent causes the recent
deficit in local bank reserves win
dow dressing over the year end and
further delay in the several plans to
establish international credits.
1t is known that a number of for
eien financial projects are under ac-
tive negotiation here. some of them
for large amounts. but their actual
Notation is said to be contingent upon
the attitude Of the government at
Washington.
The moderate advance in accept
ances ordered by the federal reserve
bank was regarded as significant in
the sense that it seems to be the pur-
pose of that institution to maintain
its rates on a parity with those of
the open market. 1t was intimated
that the central bank is likely to
adopt a more elastic policy in connec-
tion with interest and redscount
rates. I
Many Added Gains Yesterday
With the exception of rails. which
were irregular or heavy on the opposi-
tion of organized labor to legislation.
todays short but active stock market
registered many accessons to yester-
days gains.
Pools and other professional interests
forced heavy covering by bears in sew
erai OF the more speculative issues
notably steels and equipments. Motors
and their subsidiaries, particularly the
rubber group. also were strong and cop
perS rose on another advance in the
price of lead
American Wooden was most conspicu-
Gus of the specialties at an extreme ad-
vance of 6as points. Chemical, Leather
and affiliated issues making moderate
gains Shippings Were less prominent
but maintained a. steady to firm tone
with tobaccos Sales amounted to 750,-
600 shares
Liberty Bonds Little Higher
The lively trading in stocks extended
TO bonds. with slight improvement in
liberty issues. Several of the conyerti-
BILE railway issues rose from large frac-
tons to 1la points. Total sales (par
value) totaled s1s,650.OO0 Old United
states bonds Were unchanged on cali
during the week
An Increase of about s2O.55o 900 i'm
actual reserves, which Cancelled last
week deficit. was the only note
worthy feature of the bank statement
aside from a decrease of f64. 300. 600 IN
net demand deposits
Weekly reviews of the commercial
agencies referred to the enormous baIi-
day trade. and the great Industrial ac-
uvlty which accompanies the advent OF
the new year. The unusual conditions
In the steel and textile markets are ex-
pected TO continue indefinitely.