The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1919-09-05

New York Stock Exchange mas no
further significance than as reflecting
the unsettled condition of the specula-
tive markets during the period when
great decisions hang in the balance.
It is Wall streets maxim to sell
when the good news is out, and like
wise to buy after the full effect of bad
news has been felt; but in periods of
uncertainty the movement of stocks
is always considerably reduced.
But this does not by any means in
dictate weakness in the price lists, for,
as q general rule, stocks have held
more firmly than during any similar
period in recent months. This has
confirmed the conviction of many
astute traders that stocks at present
prices are on the bargain counter, and
that the tremendous volume of home
and foreign business that American
corporations will be called upon to
transact in the coming period will in
crease enormously the value of the
stocks in industrial concerns in this
country.
A revival of interest in, and of pub
lie demand for, the now priced rail-
road shares was a feature in this
weeks dealings which helped to
stabilize the weaker sections of the
market. Investment houses of the
highest repute, and with a reputation
for conservatism, have long been call
ing attention to the unusual oppor-
tunities for profit offered by the low
priced railroad issues. Though non
dividend, many of these railroad prop
critics have undergone excellent de-
velopment during the war period,
both in the matter of improving their
physical property, and in the diverting
OF business that was heretofore hndled
by other roads.
This is well illustrated in such lines
% Southern Railway, Western Mary
land, Wabash, Erie and Missouri Pa
cific, the last of which is considered
as one of the most attractive of the
low-priced railroad stocks. The prop
erty is in excellent physical condition,
and the present management has done
much to restore its old prestige in the
territory served. It has gained in
operating efficiency while being rein
state financially.
Other leaders in the recent advance
in railroad stocks were Union Pacific, |
Southern Pacific, Reading and Atchi-
SON. The buying movement was &C
companied by several reports, one to
the effect that plan has been agreed !
upon for the return of the railroads to
their owners which has the approval |
OF officials of the transportation lines.
1t was also rumored a freight rate in
crease will follow settlement of the
railroad shipments strike, which is
regarded as assured, as a result of the |
conference held at the White House,
between President Wilson, Director
General Hines and a representative of
the railroad men.
President Wilson on Wage Cycle.
The statement of President Wilson
to the railway shopmen embodies the
best in economic thought on the pres
ent day problems, and is a clear indi-
cation that the policy of the admins
tration will, in future, be to insist on
the rule of reason" in settling ques-
tons which affect the welfare of the
whole country. The business of the
government, he declared recently, is
to take counsel for the average man as
against class favoritism. The whole
matter of the prosperity of peoples
runs down into the great body of the
men and women who do the work of
the world. 1t is therefore the chief
concern of the president and his adj
visors to consider, not the specific
demands of a small percentage of or
gained workers, but the general well
fare OF the whole community.
II is, of course, to be regretted that
official recognition of these principles
has come so late, after great deal
OF harm has been done. It is next
to- impossible to reduce wages after
they have been placed upon higher
scale, but it is recognized that event-l
ualiy some downward revisions will
be absolutely necessary if any prog
ress is to be made in readjustinp
prices to something approaching the
pre-war level.
1t profits wage earners nothing if
their increased wages buy less goods.
They would be better off if lower
wages bought more goods, and that
can be accomplished only if the nation
IS a whole is ready to produce more
and to exercise economy in consump-
ton: We have already shown our
ability along these lines, and the re-
suits have been seen in definite assist
ance rendered to our European Allies
Turing the winter of 1917. Much less
Effort would solve the present high
cost problem in very short order.
One Pound-Four Dollars.
The exchange rate on pounds sterl- I
ng has declined almost to the point 4
predicted a few months ago by a
amous London economist, who said ,
hat in comparatively short time the :
'ound sterling would be equivalent in !
'alue TO only four dollars of Ameri- r
AN money. Having reached that d
'oint, hnanciers on two continents are In
how far the decline will d
ontinue before the natural demands O
i business operate to restore ex- v
hange market conditions to a nor Il
lal basis. :,
1t is almost out of the question to y
onsider official government action in 4,
.ngland or America. The British "
overnment has shown very clearly Ill
rat for The %syv. . q - "