Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-03-08
THREE FACTORS FORCE
STOCK PRICES UPWARD
Real Test OF Market VIII Como When
Wires From West Arc Opened
This Week.
nv BWOADAN WALL.

NEW YORK. March 7.--Tsetu,u Of
the railroads to private ownership.
confirmation by the Supreme Court Of
the legality Of the United States Steel
Corporation and announcement that
gold imports will soon begin. have in
tue past week put the market q few
points higher. But the advance That
has taken place can be fully accounted
Tor by tho covering OF professional
"hort contracts. The borrowings oc
stocks prove that there ls n very large
snort interest still outstanding. AS
- apparently cannot bt forced to cover
%roHcr conclude that IL must be for
securities In the boxes or WHO lavo
adopted this method IL lending money
AZ the call rate. Test OF the market
will come when the wires from the
vest are opened Monday or Tuesday.
The storm that has just swept over
mo country viii moan smaller railroad
able.
Tails %Disnppoint- Dealers.
Return OF the rails has been particu-
!ar!y disappointing because all specu-
laiirc Wall Street was set for Il big
advance in those issues selling at Al
These are popularity known az low
priced stocks, but they arc not low
in comparison with the values OF the
pr2nert'es they represent. These So
called lOw-priced railroads are the
poor relations thai have never pros
rered. There is no reason for expect.
Now that IN" United states Steel
CORPORATIONS legality cannot be qucs-
sonabie extension OF The holding COM
l,tny System OF corporation manage
fmen;. The greatest Industrial devei-
"pn,ent in the history OF the world
took place in the United States In the
period when the so-caiied trusts were
being organized. Most OF them have
AZ tLtIat Ia .a $50, - -
on SUCH a bi. scale nowadays that vast
combinations Of capital must be per
nilttcd.
Predict New corporations
~ WIZ be but natural 10 see the or
sanitation of very large new corpora
ions in the next few years. because
speculative and investment favorites
o! tbs next decade. Because the big
the courts for their lives they Fave
not. had a Chance to develop. Now they
Will. The resources OF America are
barely scratched and the neNI decade
Try. Wnii street will -cncc, Them.
Although great railroad and indus
;;bea,r a spp,1'nu,es" IN a ibs n snTs 70 m%ks
tnre. the immediate future Is SIN
much Gloudcd. Appa rantly the turn
-. 1T hand In the price Of commodi-
vancinr. but the whole a,ructurc is
S"~nE ready for a col'opsc.. Grain
rrnmcnt guarantee OF wheat prices
expires the price of wheat will do
clinc 10 about sI.25 j bushcl. There
viii oa tens Of Thousands Of men now
Employed at Eood salaries looking for
ibhs hy midsummer. BY that time
PRICES Of, food will have been reduced
80 that they can afford 10 take smaller
wages. but IL not lhcy will be com
PEELED to take smaller wages in order
30 get work 1T all.
May Reduce Enrnings.
Cold IMPORTS viii tend to reduce cor
porat!on earnings In the United States.
bit Will ultimately be builish on the
stock market. They will reduce cor
n%oation earnings Mt first by causing 4
stul further decline IN American cx-
ports because England will naturally
discourage purchases In ..Amersca. while
shc is building UP a-,credit- here. At
Tho enmc time the Federal Reserve
suard VIII not permit an expansion Of
the currency with this gold.