The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-02-16
or T|M|SM LOOMS
. THROUGH ACTION
OF RAILROAD MEN
w a III Street Resumes
Business With Brighter
Mein Than Exhibited
for Many Weeks.
~ DROADAN WALL


New York, Feb. 1s.-Wall street will
resume busfness tomorrow with more
optimism than Tor many weeks. Inn
provement in sentiment Is due to an
nouncem emit that the 100000 mem bers
Of the Brotherhood OF Maintenance OF
Way Employees and Railway Shop, la
boisrs have postponed indefinitely
their strike for higher wages: i'm
prevement. in the credit situation and
"a statement by Secretary Houston, OF
the United States treasury, indicating
that the government has provided or
Withdrawn from the banks all the
money for the successful carrying out
Of it's financial plans.
In addition to this the technical po-
sirion OF stocks is believed to be
stronger than 1t has been for a year
as result OF the severe depreciation
in quoted market prices of the last
few weeks.
Announcement that the railroad
workers have decided to postpone their
threatened walkout is gratifying TO
the Ana district in that il would
have Injected an element of much I'M
certainty in the return of the railroads
on March I to private ownership.
Irrespective OF whether the EN-
ployes Of the railroads believed public
sentiment was for or against their
their action is considAred favorable in
that it would Indicate Willingness to
have their demands adjusted without
serious interruption to the transports
ton business of the nation.
Investigation develops the fact that
more people are interested financially
in the nations transportation problem
than ever before IN the history OF the
country Large brokerage houses and
bankers state that the ownership OF
the railroads has slowly but steadily
been transferred from large to small
investors.
Notwithstanding the pesstmistic out
look for the transportation companies
small investors have been buying rail-
road stocks and taking them home
until the floating supply of these Sc
cuyities is now declared to be the
smallest in history. Many people are
now the owners Of railroad stocks who
never before had financial interest IN
the operation OF the nations arteries
Of commerce.
Although the remedy adopted has
been considered severe local bankers
uste that the credit situation has
within recent weeks shown substantial
Improvement. Official and other ad-
vices from leading federal reserve sec
Ftiona testify 10 further crsAtt rrstrieA
ts~nx and reduction in prices in the
commercial mArktts This has been
somewhat rejected in the decline in
the call money rate to six per cent
Time money, however. continues 10 be
loaned at high rates. ~
One reason for the betterment in
the credit situation is the fact the
United States government has ceased
to be chief borrower of credit. Secre-
tary Of the Treasury Houston's state
ment indicating that the needs OF the
government had been arranged. is 4
source of much gratificatton TO hnan-
cial as we'll as business interests.
Another favaroblc influence is tina,
private interests in the United States
thave received word from the other
side that the British government has
assured its Industrial captains that il
will finance the purchase of all raw
materials that are urgently needed in
Great Britain and which must be
purchased from America. Although
no official announcement OF this at
Ntude was received in the financial
district last week, the improvement IT
sterling exchange was considered sig
nificant
while there is 4 difference of opin-
ion among prominent Wall Street in
tarests as 10 whether stocks are pur'
chase a, present ieveis.sit is a fact thai
quite a number of bargain hunter.
have been induced 10 buy securities
the last week owing to the sharp dc.
probation in quoted market values
that has occurre dthe last two weeks
The shares of many Of the mosl
prosperous industrial corporations are
considered 10 be in strong position
owing to the huge earnings made
since the beginning OF the European
war and the policy OF the manage,
ments in distributing but a small par
OF the revenues to shareholders. These
large earnings are held intact SO thai
with the completion OF the liquidation
lof the war business the industrial
companies are left in stronger posi-.
ton than ever before in their history.
Quite number OF companies hays
within the last Ave years earned mors
than the present market quotations
for their stocks.
| Notwithstanding this many peopl.
are of the opinion that the industrial
depression which lis being predicted II
some quarters should warrant lower
iprices for securities. Brokers report
that many investors have within this
| last week sold bonds in order to plac'
| themselves in possession OF cash witt
which to buy stocks should furthei
Procession in quotations take place..