Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-07-21
DO NOT BUY SECURITIES
FOR INCOME THEY YIELD
Purchasers Have in View Rosy
Prospects for Great Enhance.
mcnt in Value.
is DOMINANT NOTE OF MARKET
Revolution In Governments Is Re-
Elected in Finance, Writer Declares.
Movement Considered Too Deep to
he Guided by Bankers.
ny BROADAN WALL,

NEW YORK, July a0.-In spi,o y,
the 'remblings of bankers. brokers
ana professional traders. the technical
tinues sound. Brokers' loans are about
$1,000 .O00 which is n high record
but even this vast sum is not large
IN comparison with previous loan
levels. when one takes into considera-
ton the tremendous imitation Of cur
rency and credit due to the war
Inc British pound is now worth
about s4.35 and the American dollar
is worth only about 30 cents. COM
pared with its purchasing power five
years ago. This brings the purchasing
power of pound sterling down to
$40 here. compared with SiS4 before
the war 1t is by contemplating such
figures that one realizes the terrific
imitation in which the world is wal
lowing. In the light OF such figures
of speculative stocks do not look high.
In the light OF such figures it is a
wonder that purely investment bonds
and such securities sell as high as
they do.
liz Inv of Nature.
Securities now are not bought so
much for the incomes that they yield
as for the prospects of an enhance
mcnt in value commensurate with in
hation. Many persons do not seem
able TO catch this distinction between
crease of principal. That. however. is
the dominant factor of the stock mar
ket. II is law Of nature. almost.
that is working itself out for the en-
cording as they go with the tide or
attempt to stem 1t. That is why the
warnings of the Federal Reserve
Board and the brutal call money tao
tics fail TO make more impression on
the market.
Now is the time TO pay debts. The
debtor who neglects to do so at this
time may In a few years bitterly re-
Eret his neglect.
The market is being affected by what
sailors might call financial ground
swell. The movement is too deep. too
fundamental too elemental to be
guided by any artificial action by
bankers. There has been a revolution
in governments. and now we are get
ting revolution in finance That ia
why the stock ticker is at the moment
so important. II is the pulse of
finance 1t does no good TO scold or
dcnounce.
Finance IN Stnmpcded.
The various sharp movements in
legitimate stocks and the swindling
operations that are disclosed from time
to time are nothing more than the
outbreaks OF the elemental feelings OF
the masses. There is wild desire on
the part of everybody to get In posi-
ton to live as comfortable as in the
days before the war. Everybody is to
blame and nobody is to blame. FL
il runs itself out OF breath. like herd
OF buffalocs. il will slow down.
The pessimists are fearful that. like
stampeding huffaloes, Il may encounter
a sunken road or a precipice. II so.
there will be a panic. But the pessi-
misls have no more reason for think
ing that there will be panic than
the optimists have for thinking there
will not be. Both are serving useful
purposes The. ootimists keep them
running end the pessimists make them
watch their step. The one is necessary
as the other.
The statesmen sent abroad by cor
poratlons are returning with informa :
lion that foreign buyers offer TO take
all the goods they will send on credit.
This astounding situation forces early
considcra ton of an international
credit scheme. The plan OF having m
ternational acceptances which Will he
sold TO the American investing pubic
seems TO be the most rational one. II
is one that comes first to the minds
OF every business man Undoubtedly
it will be adopted. The whole world
seems to have agreed on ii. but 0ow
the matter OF speed is important.
America is ready TO do business. nut
cannot until the credits are aE:ahscu.
If some international movement is
not started soon, individual corpora
tions will get the cream or the toreiEh
business, to the great detriment 10
business in general. This matter is
lust as important as the league OIL ma
tons IL not more So
C.rop reports continue optimistic. the
only bad feature being in connection
with winter wheat in the Northwest