Evening star., 1919-04-27
OFFICIAL TAX EXEMPTIONS
ON ALL LIBERTY BOND ISSUES
Treasury Department Defines the Amount
ofVarious Loans That May Be Held Free
of Surtaxes and Excess Profits

Is the most prosperous cTeuitor hd
tion of the world.
South America, heretofore borrow
er of large sums from Europe, now
! finds that the war has left Europe
so badly in need of funds and credit
that she has nothing to lend. but is
| herself a mendicant, depending on
American resources largely. for the
elimination of the scars of the war.
People Are Creditors.
We have borrowed ourselves, but
| fortunately our people are carrying
the obligations in large percentage.
! The national banks of the country
fourth liberty loan campaign, but
s6S5.000.000 of all liberty bond is
! sues. and it is safe to say that these
holdings have been greatly reduced
since then. This simply illustrates
the manner in which the debt of the
an argument for the liquid. excellent
condition of the banks of today.
Americas financial resources have
| grown by leaps and bounds, great
! finance explorations at> home and
abroad, and there will be a place for
all these millions. but that money will
become easier in the next few years
/ of this great reconstruction effort
does not seem at all proba BILE.
! The Webb Law Helps.
/ The Webb law is on the statute
! books for the purpose Of encourag-
. ing great combinations of capital in
| the export trade-in that for this
purpose. and in this one respect. it
+: supersedes the Sherman antitrust
J law. and offers just the opportunity
? needed to enable our manufacturers
to compete with the great British and
continental combinations of CONNER
| cial effort and capital.
! Ihe indications are all for pros
. perity when the conditions that now
cause doubt and prevent Industrial
open market regulated by supply
. and demand on all commodities is
greatly desired to that end.
! Production Falling Off.
/ Slowly but surely production of
steel rails. plates. shapes etc, is fall
| ing off. Some of the plants know as
high cost producers are being forced
/ to shut down. some manufacturers
even daring to hint that wages must
come down. despite the great efforts
that have been made to protect them
on wartime basis.
The refusal of the director of rail-
roads to accept the prices fixed by
the industrial board and the pro-
ducers. despite urgent appeals on the
part OF the President that an agree
ment might be reached, has had a
bad effect in sidetracking scores of
oroers that would have been placed
NAG the railroads. unquestionably
sadly in need of equipment, set the
i pace with big orders.
In building operations recourse is
constantly being made to additions.
repairs leanto structures, etc, M
stead OF entering into new construc-
tive work.
Railway Investors Active.
The Railway. Investors League has
/ resumed its fight to secure the mu-
tuai protection oftheir rights as real
owners of the railroads Of the United
! States.
The railroad executives and the
Shippers have eacn presented a plan;
: pan kers and economists without num-
per nave made statements as to what
/ they think about conditions. and the
small! shareholder" says the league
circular, has remained silent, watch
ing lots being cast for. his garment
ana the price lof Ihis.securities go
| Here Is the leagues plan, which it
! will present to Congress--that is, the
principles. on which it believes any
solution OF the problem must rest:
!. Return Of the railroads within a
ships.
2: Private ownership and opera ton
under close government supervision
and rate regulation, with the gov
ernnnent guaranteeing to the owners
OF the railroads fxed return on the
amount OF their investment.
t. s.sDevelopment Of proper machinery
Iof government supervision and the
rate regulati that viii bring about
between the railroads and the gov
ernment relation OF mutual trust
and cooperation. The circular is
| signed by John Muir. as president;
! Z. c. Morbes. Lionel Sutro and Frank
lin Escher.
Big Market in Stocks.
| Despite the uncertainties in the
situation In Europe. the Wall street
market continues its wild activity
| with under a million shares q day al
most thing of the past in the grow
ing volume of trade. which scored
100000 shares in the two-hour session
yesterday.
The public is in the market. Brokers'
| omces are crowded as they have not
been since the early days of the war
stocks activity.
| 1t 1s also fact that many who have
| made fortunes in the war are in the
speculative market; that there has
been such steady and continuous ad-
vance in prices during the year 1918
that they have all made money. and
this. too. in the face Of frequent nm
favorable happenings and against the
advice of some Of the best judges in
the market. who have frequently ad-
vised against continued bull opera
! tions.
Manipulation in Rails.
In the last few days some Of the
cheap rails and other stocks in the
: same group and equipments as well
have been decidedly prominent in the
price.
This action caused some comment on
the part of shrewd traders. who can
nna put one reason for any advance in
| ran shares. that they are being ma
nfpulated as an aid to permit heavy
traders to get out OF tho industrials
with their profits. The railroad situa-
ton fs certainly as badly mixed as
the peace Conference.-The prospect for
a speedy settlement Is nil, There /.
some chance for the equipme ent shs re-.
Tor the railroads need and must have
equipment and repairs.
| Local Securities.
There 10 nothing new in the local
securities situation. Trading durin1 .
the week started with . spurt in Cap.
1tal Traction shares and then died
down to the daily average Of q few
shares and few bonds. Prices were
without changes Of any Importance.
There 10 no talk of merger Of the
street railroads. A COMMITTEES an.
pointed by each Of tho companies dis.
cussed this matter for weeks and
gave It up. The only possible way q