Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-30
GENERAL DEFLATION BRINGS
NEGLECT TO STOCK MARKET
Buying Element Holding Aloof Until After
Readjustment- Spectators About
Only Traders.

tons Of the community can claim
right to be exempt from loss.
Doing Their hit.
The investor in securities has seen u
tremendous shrinkage in his principa
and has had to bear il with scani
sympathy from the outside. This was
his contribution to the sacrifices en-
tailed by war. The speculative Gle
lnent certainly did its bit in the OK
traordinary decline which began Jus,
a year ago. One after another the
textile manufacturers. the sugar
growers and refiners. the leather men.
the copper trade-these and many
others have had to stand their share.
They had made abnormal profits
during the war time. il was not un-
fair that they should give up some
of these profits is the price of re
turn to peace.
The farmers of the west and the
cotton raisers of the south are in no
different position from any other
class They have seen their com
modities commanding fancy premiums
for four years. They have had III.
profits.
Big Profits GaPnered.
Now. under the economic law. which
knows no farorites. they are con-
fronted by the same necessity of TAX
ing loss, severe enough. to be sure.
but not out of proportion to previous
gains So, too. in the banking bust
ness immense profits have been piled
up Is it unreasonable IL the liquida
ton now in progress compels the
linquishment of some OF this accumu-
lation? Credit facilities can and
ought to be invoked to prevent hast
dumping of commodities on the mat
ket in a way that would invite full
ures and acute disturbance. But losss.'
due to price revision must, in the end.
be taken; it is merely the function of
the banking authorities to see th.i
the liquidation is gradual and 1"
soften the process as much as possible
UnimpOrtant Factor.
Settlement of the great English co..!
strike was a matter of practical in
| terest only as it brought out how
small a factor this had been in finan
cial calculations. So. too. was tn
presidential election. However de
sirable Wall street may profess L
regard a change in parties. this can
not affect any movement SO essential
ly economic in character as the pres
ent one. The readjustment throus
! which the country is passing wi
have to go on quite the same whoer'
is chosen President. and II isthis n
adjustment which has been the undo
lying factor in the recent course
the security markets. There has b..
no room for the traditional pre-cl
| ton rise. Wall street ought TO M
seen this after theapathetic respol
to the Maine election. but il cluns
its illusion almost to the last.
Big Investment Movement.
The bright particular spot just q
is the continued and truly wonder
display of absorptve capacity in
investment market.
There seems no satiating the publ
appetite for high-grade offerings y
out at the present attractive inters
rates. On the contrary this week
neutrality-suspicious. those OF I
Westinghouse Electric and the IL
nois Central-have gone more swift,
have been more largely oversu
scribed-than any that have precee'
| ed them during the last three montl
This means a lot for the credit stu
ton in the end. and it is the featu
which sharply contrasts the prese
situation with former occasions
| strain. We have no undigested secu
ties problem, as we had in 1903
1907. but quite the reverse. 1nve'
| ment capital is providing large su'
which either have been or would M
had to be borrowed at the banks.
Copyright. 1890 by S. r. west.)