Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-12-15
CAUSES OF STOCK BUYING
SOME SAY NATIONAL
PROSPERITY is HERE
Foreign Exchange Rates Arc Such That
Spectators Want Federal
Help In Situation.
By BROADAN WALL.

az NEW YORK, Dec. 14.-Reasons for
buying and selling stocks just now
are about equally weishty You can
get Just as good authority for one as
the other. Equally successful men in
the financial district will tell YOU tnat
we are on the verge OF business de-
preston and that we are just enter
ing an era OF uneNamplcd business
prosperity. Ii all depends upon
whether the speaker is nationalist or
an internationalist Those who have
attuned their souls TO world conditions
are depressed, but those who never
look beyond the borders of the United
States see boom times coming for this
country.
The internationalists think the Amer
lean government should do something
TO restore the equilibrium of foreign
exchanges, contcnd!ng chat the matter
has gone beyond the power OF private
capitol TO control. The nationaliStS
say tina; England in particular has
rather favored the decline in sterling
because il compeis the British 10 buy
in home markets and cuts of dealings
with America, where prices are high.
They think the matter should be al
lowed 10 run It's course.
Several Theories Advanced.
The theory first advanced two weeks
ago TO the effect that collapse of for
eign exchange would be a good .h;nS
for this country by forcing the sale
here OF commodities now held for oX-
port and thus reducing INC cost of
living, is finding wide acceptance. This
theory has nothing 10 do with the pues-
ton of our duty 10 starving Europe.
1t is merely = cold hloodcd business
theory. but il is no worse than similar
theories advanced into active practice
by foreign governments IN competition
with the United States.
Unless can speedily resume bust
ness relations with Europe on Il large
scale there is sure TO be great over
production of commodities in The
In prices. This will ultimately bring
wages down and restore conditions 10
normal in the United States, whereupon
Europe can AFFORD 10 buy from us again.
Whether this is 4 bull or bear argu-
ment on the stock market depends
upon ones point of View.
Regardless OF what the next two or
three years may disclose. it is n fact
just now that there is whole gears
supply of copper metal held in ware
houses ut high interest charges This
copper is becoming more and more OF
an embarrassment to its owners and
before long must be thrown on The
market regardless OF price
Spinning Capacity neduced.
It is also 4 fact that the spinning
Capacity OF the worlds cotton mills has
been reduced eighth at least By
the war through the ineiticicncy OF
labor. and that additional spindlcs can
not De put lnlO operation ON INs 70
the high cost of material. The result is
that with the world needing vastly
more cotton fabric than is produced
the supplies of raw cotton cannot he
marketed because they can be marketed
only in the form of fabric
This is the chief trouble also IN re-
gard to sugar, OF which there are vast
supplies Of raw material, accompanied
with scarcity Of the finished product.
due to a lack Of transportation and
refineries. The same is 10 "a large eX,
tent true OF petroleum. The world
is overlooking with crude oil far in
excess OF the demand for refined
products but transportation and re-
inning facilities limit the available
supply.
This country can produce food for
the world, but the foreign exchange
rate acts as embargo. Since the
foodstufTs cannot be sold abroad to adj
vantage and since the American gov
eminent Will not guarantee prices TO
farmers in the future. ii is reasonabI"
10 suppose that crops Will be smaller
next year That is no argument fCr
high prices in the stock market.