Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-01-01


the history of the country have so many
complicated problems cropped up with
such alarming multiplicity as during
the twelve months period just closing
problems solution of which have taxed
The minds of the nations brainiest spe-
cialists in finance, industry. labor and
other economic and social questions.
Some were adjusted entirely satisfac-
torily with order brought out of condi-
tions little short Of chaotic. Others,
possibly more intricate. are still in
process of solution, with every promise
OF the irritating wrinkles being soon
ironed out, so that the outlook for
complete realignment of financial ma
chinery in the new year may be said to
be encouraging
Because of these ever multiplying
problems the average banker. business
man and investor will have reasons
never to forget 1919 Most everybody
concerned has been living under high
tension, for the twelve months period
was conspicuously marked by active
speculation not only in securities ana
commodities. but in almost every form
of value. All were but natural out
growth of the effects Of the great
European war as regards finance, in
dustry and commerce.
Shifting Foreign Situation
Constantly shifting changes in the
FOREIGN situation made the task OF res
roration much more difficult, as tmis
was ever a source of ursett,ement. Stltl'
In point of foreign trade. we held the
supremacy already attained because the
world wide scarcity brought increasing
rather than decreasing demands Tor our
products, enough indeed, to much more
than Offset what had been lost IN am
munition and war supplies.
In this connection it is interesting
To note that the National City Bank
s, of New York estimates that the exports
y Of manufactures from this country in
4 1919 more than tripled those of the
openiug wear of the war, or at the rate
of $40 600 900 a day. Much OF TINS
expansion is represented by values, ouV
Tho compilation illustrates quite torcl-
blv Fyrope's post war difficulties IN re-
trieving her own standard OF manutac .
turing enterprises through a year Oh
suspension of hostilities.
Coming down to the stock exchange
operations for the year, it is question
whether those interested were ever Sc
riously concerned regarding the mul
tiplying problems, or even consldereu
the economic side. Experience mas re-
peatedly shown that all great market
I, swings are governed invariably from a
sentimental viewroint Impulse is in
control rather than fundamental or
underlying conditions. At least tnlS
seems applicable to the wild speculative
orgy which ran rampant throughout !he
length and breadth of the land during
the greater part OF l919.
Wild Speculative Mania
The many consecutive mil snare
markets between April and December
alone tell the story of the widespread
speculatiye mania. When the move
70 ment was at it's height the whole coun
4 try was speculating. and the stock ex
change during the great upward SWIM;
was forced to declare a series OF u" /
days SO as to enable the clerical forces
of the brokerage offices to keep up witt
their orders.
Unlike the wide market movements
In the nrevious years of the european
war period the outburst of specu!atiV'
enthusiasm in 1919 is associated WITT
totally different connections. The DIS
bull market of 1915, commonly knowL
as the "War Brides market wa
!. toached off by the transition OF many
4 of the 'country's largest industries from
a peace to war producing basis. Int
ennaIly violent bull movement OF l9It
had it's inception in the prospect ant
realization of huge war profits by th'
s.ma Industries. The demoralizlnt
.jownward swing of 1917 was influenced
entirely by the transition of the country
from n ueace to war basis, as wei
as the effort to help the government
finance the war. Burdensome war TAX
alton and government hnanclns wer'
the controlling influences Oh tne SUP
dued market of 1918.
Rv some observers the impetus TO
the unbriGled bullish enthusiasm OF lgi'
was derived from the belief in wid
extension of the countrys prospeflt.
following the ratification OF the peac
traatv and return of the world at larg
to peaceful pursuits.
Drove Prices Up Recklessly
This may have been an incentive am
possibly the nucleus Tor the Dig HlalAt y;
ismboree. but the furious trading in oi
shares. automobile stocks and all othe
;nJnstrial specialties had only films,
Foundation. It was simply and purely
case of the people having more none
than brains. ,,.--, e
II was solely the handiwork OF
n,,mher of reckless pools and clique
5sv after day from the middle of Au
~,,st 10 the first part of November tha
drove prices OF the industrial specula
five issues almost to the sky line:
As the loftier levels were reached tn
greater grew the following. AS a mat
fer Of fact, there has never been sue
= widespread growth of the speculativ
apthusiasm, for the craze for oil stock
Vas unprecedented. So many of til
rronerties made good as to finally at
Z tract nation wide support OF the move
ment. ,.- ....
II was only necessary to have sus
nicion of oil possessing to start an
stock a humming. 1t wa the same wit
the automobile stocks and their acces
sories. So it was along through the en-
fire Industrial list. The railroad share
- we're neglected because the people wer
uncertain about the status OF the in
dnstry and could not tell what proyi
sion the government would make for th
solvency of these great properties.
Pubiic's First Taste
I, THE question often was asked wht
VI .ot tne SO called public in the stoc
ve s,arket mood? This is easily answere
a fnring the lotation of the Liberty an
a ysrtory Bonds thousands of person
j nrourhout the country who had nevt
made such investments bought the:
government securities and got their fir
taste. There is not a question of dout
hit that the unprecedented public sup
mort of the big bull market Of l91
was the direct result Of getting II
900 900 big and little investors Of ii
country to subscribe for the hve ws