The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-12-08
Street THINKS STOCK
DIVIDENDS NOT TAXABLE
BY BROADAN WALL

New York. Dec. T.--WAfI street ex-
poets the supreme court to decide to-
morrow that stock dividends are not
taxable as income and for that rea-
son the shorts are nervous and those
who are looking for higher prices ore
on their toes ready for great activity
Should this decision fail to make its
appearance: there will be great dis
appointment and an irregular market
will naturally follow. This will he
so because the street IL rather dis
appointed that the favorable action
in regard TO tho Southern Pacific oil
lands and the release Of Consular
Agent Jenkins nv Mexico had such
Frtle effect on the general list The
latest dcyel epnents in the coal strike
sitna ton. however. tend toward consid-
cradle optimism.
Sterling continues 10 fall but good
many persons are now accepting the
theory that its further decline Will be
a reason for advancing the prices of
stocks in wall street.
Sales arc probably nearly finished
for the purpose Of recording losses 70
he charged against taxable incomes
Many OF those who sold have not re-
purchased so that there is technics |
short interest at least This added
to the actual short interest gives Wall
street rather strong technical con-
dition.
The condition Of the federal reserve
bank Is not all that could be desired.
but there seems to be no disposition
TO make further attacks on the stock
market but rather TO force HQuida-
ton OF commodities that are held for
speculation. The decline in tho for
eign exchange rate WIFI speed up IL
quotation Of these speculative commo-
dties for hope of unloading them In
Europe in the near future ia fading
and the interest charges arc begin
ming to count IT was hoped few
days ago that the Edge bill would
become q law almost Immediately but
unexpected opposition has developed
In the senate. The bill may not be
presented for the presidents signature
for weeks and in the meantime foreign
commerce is in chaos.
Collapse Of the exchange rate and
! chaos in foreign trade is not worry
ing Americans nearly so much as 1t Is
worrying Europe In fact that col
/ lapse Is likely to prove a great beue-
+, fit to America by forcing specula tors
to let gro for distribution in this coun-
| try the last quantities OF commodities
they had assembled to be sold in
! Europe. This country and South
America need all that can be supplied.
! The release OF these commodities
would of course reduce prices and
/ that would cause some defation Of tho
currency.
Foreign commerce experts are long
/ ing for peace so that trade may be
resumed with all Iarts of Europe.
Such trade can only be resumed az
! ter huge credits are granted ard the
granting of such credits means that
there will be tremendous issues OF for
eign credits offered for sale to Arneri-
can investors. That will take money
away from the stock market If the
/ investors refuse to buy them then the
banking interests will have to TAX.
them and that will consume so much
credit that 1t will curtai1 the 'oanins
power in Wall street Furthermore
the fact that good are being sent tc
I Europe will mean q reduction OF the
supply for the American people and
consequently higher prices and an In
crease in the cost OF living here.
Therefore peace and a restored ex.
change rate must prove, in the be-
the stock market
In the decision OF the attorney
general to abandon the suit to re-
cover oil lands from the Southern Pa
cfic the investment world sees the be
ginning of square deal for the rail
roads. There is excellent buying OF
underlying railroad bonds now for Il
bonds ever were on the bargain couh
ter spec,iiativeiy the rail bonds are
thaYs now