The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-08-05
LOOKS FOR D T
OF STOCKS NEXT ItIl|
tBy WALL,

New York Aug. 3-When will the
itch men sell their stocks7 An
swer to this question will tell whoa
the present bull market will end.
They will sell next year.
Why:
Because the Republican,. to make the
presidency sure for their candidate. will
pass . law reducing the var tax that
made selling impossible now. That 10
the program. The bill - being drafted
So everybody can get ready for the
me OF course something may .
this beautiful scheme. but there does
not seem to be any possibility Of inter
erence. The ways are creased and the
launching Il to be done publicly and
with great ceremony. in the name OF
reduced cost Of living.
Real patriots are selling already. for
they can afford to do so. 2
How is that. why does II make a
difference whether an investor - =
real patriot or mott Well. II does. Here
Is the way II works out:
When war taxes were first irnposed
they were small. but many rich men
resente them. So they refused to take
profits that would be taxed. They put
in all the losses they could n hold
their investments lest the government
get part of their profits. The real pa.
ITlOls SolO as usual. ElSiHX TO SHS wv
eminent cheerfully. They r~epurchased
Mt higher levels, and the next year
their profits were counted from the
higher levels. and they sold again and
paid taxes again.
The other kline had reasons for not
selling-frst. their profits were too
large as measured from the low level Of
the previous year. and second. they
were madden than trey were the year
$3.50
higher, and the real patriots cashed
in and paid axes while the other kind
swore at the tax rates and bewailed
their folly in not taking prohts when
they might have done so with smaller
taxes.
Now the real patriots are working
the stock market as a liquid asset,
in millions of profits that they cannot
take because most OF 1t would go 70
the government.
The general public will 60 ahead buy
ing and the campaign for higher prices
Is not hurt by the disclosure OF un-
deriving principles,
The strike movement on the railroads
is regarded in the financial district as
more dangerous than that in the steel
industry. The steel companies have
treated their men so decently that 4
strike there is unthinkable. But the
railroad situation is different. The
men see the roads slipping back to
private ownership. and realize that
they must act quickly II they are to
deal with the government alone In the
settlement of their problems.
Foreign trade is another problem
that Is worrying the market leaders.
The more the country sells to other
lands, the higher prices will remain at
home. A vast surplus OF foreign trade
in favor OF his country means con.
tinuation OF the present high cost OF
living. And even SO. the great foreign
balance will be on credit only. II will
90 nobody here n cash good. 1t Will
only increase the already hopeless COM
plications of foreign exchange. The
theory advanced 4 few days 81 in this
column that American sales to Europe
should be limited to the volume de-
manded by the dictates OF pure hui
nanity Is being accepted by t~housand1
of advanced thinkers. "
Sell to Europe all the actually need-
ed-no more. Buy from Europe every
dollars worth possible. That IL the
correct program. Only on such lines
tar the problem be solved. And while
doing that. push American trade to tia
end Of the solvent earth.