Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-08-30
IalL STREET STAGES A
|COMEBACK' OF OPTIMISM
ircc Things, However, Arc Ncccs-
sary to Insure Continuance of
Strong Market.
UT IN STEEL PRICE ONE
NO Others Arc IN Improvement in
Transportation and Restoration
8 of Easier Money by Federal Re-
D serve Board.
BY BRoADAN WALL.

NEW YORK. August c9.-Matcriai
Improvement OF sentiment, has be
me apparent in the financial world
3rinE las; week. but there arc stll
rec fundamental necessities Of a
aod market. money prontecrins
ust be stoprei; the price OF steel Tel
cnities OF the country must be i'm q
Crops are good beyond danger Of
Iious damaee and l"n?r is heeom :.
Saney and steel and better transpor-
tion the country Will be able TO re-
ore business to normal very quick +.
e stock market Will be able 10 con-
lue optimistic.
Looks Like Il Cut in steel.
There is no official warrant FOR say
II that he price OF steel Will he
u. but the way the railroads hest
lie in placing their orders suggests
at such "A thins must be done, COT
N. rubber. sugar. SIN and u dozen
sher commodities have gone DOWN
lille steel remains at about war
.Acies.
! tlVhat the world needs now moro
san anything else is steel. The steel
fSmpanieS made big profits during
re war. Nobody has criticized them
! sr that, because they really won the
3Ar, and the people seem 10 think
Fat they are entitled TO thanks. But
.hnies can afford better than any
her class of corporations TO start
se cut toward normal. This cut is
Ihcessary.
1T. is hardly fair 10 burden the rail-
ads with bond issues to pay for
.uipment based on the present price
steel. 1t is true the government
iarantees a fair return on the cost
railroads ia the future. but it is
I3t good business TO be reckless in
sing that cost. Good business and
bod citizenship demand that the
pee SO that tho railroads. and
trough them. all other lines OF bust
hss may set started normally.
SO much has been said recently re-
arding proii;ccring in money that
would seem positive action must
y taken very soon by the Federal
sserye Board. That board is re-
eney because it has neglected. It's
lties under the law, which gives il
tsolute control Of funds down TO
ultimate borrower. The board
ps permitted excessive rates to he
aarEed.s not only in Wall Street.
~ in the time-money market. State
w against usury have been iG-
Accuse, rrdcrn, Reserve.
Thanks to the Federal Reserve
,ard's handling or the money mar
~, commercial failures are incrcas-
= in number The las; week they
: IRE some loo compared with lJo the
/ fevtous week and ninety-;wo the
me week last Year. These failures
e taking place in spite Of the fact
at there is an unlimited demand for
IL kinds OF commodities. far in en-
ss OF the ability o; manufacturing
|mpanies 10 furnish them
IaThus the foundations of America n
lsiness have been undermined.
The panic Of last November was n
| erect result OF manipulation OF
I5oneE. SO was the one in February.
IL is the recent collapse. SO is che
olapse OF commercial business. Snug
atemcnts have h.cn issued calling
tenUon to the lcssening OF specu!a-
| bn in Mali street
IiTho collapse Of The stock market
IaS not been due 20 4 destruction of
I've speculative spirit. bat to the do
Tuction o! the Investments .! bust
Ifss men. Spectators can never tie
ached except through other bust
itss lines. They are simply The
tmes. The basis OF Tho cOn,lag-a-
ION lies in big business Nobody
res for the specu!a'or FOR ne "a
PIE TO take care Of himself. and is
fact simply 4 second personality
i,ssessed by every serious business
an. II speculation = hUr; tina:
cans that the productive business
fterpriscs OF the country nav" seen
ricken down first and the whole
| a
e Fedora Reserve Boards claim
# At II did IT,
But so vast are the business inter-
is in the world that the banker
ouid De crazy vino would attempt
say that ne can look further ahead
an few months
II precedent j. 10 be followed there
konld be recovery IN the securities
arket beginning now ana. .ontiyu-
past the e.cc'!on.- ~ sven
irthcr than that 4 ste@T Prices nrc
I; and money made available Tor
ssiness. But there IS no use of tho
6fople fool!Hg themselves ahou, the
adHion OF commercial and manu-
ctnrinS business. II - la the m,ds;
serious decline and perhaps there
ay be icmpo-dry collapse II IS
le belief OF most OF the bankers and
hanciaI leaders that while there
All he very Important advance ir
le stock market, IL may be sucjcc;
SHHrp f.-re