The Washington herald., 1919-11-10
WALL STREET
| REVIEWED BY
HENRY CLEWS
By HENRY CLEws.


outstanding events of the past week
have been in many respects conflict
ing and uncertain. they have. on the
Whole. been in she direction of re-
snewed soundness and safety and have
tended to support conservative in
vestment. There has been renewal
OF the prospect that action on the
peace treaty would be obtained 9t
nome reasonable date in the near fl-
fure. public opinion having obviously
turned away from those who have
shown a disposition to defer action
for purely factional reasons. II
must be admitted that authentic re-
Ports concerning the foreign eco
'nomic situation are not reassurinE
and that only slow progress Is being
made toward Improvement.
M The prospect of an early establish
'ment of some kind of effective ma
.chinery for the control of the recon-
.struction process and the probability
that the United States will be rep
resented by such bodies as may be
created for that purpose, however
tends to diminish the disappointment
that would otherwise be felt at the
Industrial and financial demoraliza-
.tion Of Europe.
Domestic Outlook. &.
g At home the outlook for restora-
tion of stable and sound conditions
Is still uncertain The threatened
mine strike, which some had be-
Heyed would be called off. because
OF its disastrous possibilities and be-
cause of the evident reaction in pub
lie opinion. was put into operation
on November l. and has undoubtedly
Affected q large number Of miners.
Exactly how many can be kept at
work Is still uncertain at this writ
ing. while the promises of a resort
10 arbitration have not as yet ma
terialized. Nevertheless. the attitude
of public opinion on this whole ques-
ton has been encouraging-progr
sively SO as time has gone on. The
satisfaction felt by the community
NJ the growth of a disposition to
View the strike problem from a sane
POINT of view has been confirmed
BY the Election Day outcome, when
q distinct victory was scored in
favor of orderly processes Of dis
eussion-
- Market Developments.
Market values have continued high
since last week. and although shrink
age occurred Immediately after the
development of the money situation,
already sketched, it was not serious.
On several days the operations in
certain groups of shares have been
carried so fa- as to create an OF
vfously artificial situation. Indeed.
ID can be said of many groups of
shares that their quotations are LOW
in excess of their investment values.
Their incomes are not such as to
pay a return upon their price and
there are many reasons for suppos-
ing their existing value may not be
generally advanced above present
figures. Further operations in many
stocks should therefore be engaged
in with caution as the general tend
eacy OF money IN the near future
may cause a decline in the quoted
levels of many shares. Present
methods OF taxation are tending
strongly to reductions IN net earnings.
On the other hand it should be al
Ways borne in mInd that the present
tax conditions create an artificial
situation by rendering many holders
unwilling to sell and take profits. in
asmuch as by so doing they subject
themselves to excess profits taxes
ONiiCi tAA' "ONlN NV AiSi =
TO pay.
The Railroad Outlook.
In notifying Congress that the
railroads. would have to be returned
% their owners December 81. Di
rector Hines has practically forced
he railroad situation into a new
phase. There have been rumOrs for
some time past that government op-
sration might be extended for few
months in order to afford time for
Congress to legislate.
BY informing Congress that the
roads will be returned Mr.. Hines
aas made necessary prompt action
regarding the status of the lines.
and in so doing has practically de-
,erred the discussion of the general
-ailroad question until a later date.
lt would now seem that Congress
would have to lay aside the Cum
nins bill for the time being and
snact some temporary legislation
calculated to provide for immediate
necessities. Just how this will af-
'ect the prices of railroad shares
remains to be seen, but its first in
iuence has been favorable rather
han otherwise. The railroad shares.
IS Is well known. have not partici-
1ated in the great advance of prices
on the exchange. Favorable legis-
ation now may open the way to a
Moderate advance in values.
Prospects and Precautions.
While on the whole the weeks ex-
psriences have tended decidedly to
-eassure those who had been fearful
concerning the future of conditions.
hey have by no means given ground
,T over-optimism. They have, on the
ofher hand, emphasized the necessity
of moderation and avoidance of ex-
.sss in speculation transactions and
6aset pointed clearly to the need of
seh-control and foresight IN the
ieeiings of the coming months. 1t
nay be possible to get through the
present critical situation without any
serious reaction, but this favorable
)yteorne will be attained only through
he use of conservatism and good
udgment and the curtailment Of un-
idanded and overIssty booming of
raaues in all parts of the country and
nall classes of transactions.