The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-02-18
U. S Railroads Are Amer
can Owned for First Time
In History Of Nation.


When cheaply quoted rail shares
jump two points between sales. when
stocks OF the standard carriers ad-
vance five points In an hour-the last
the Significance should not escape
the most arid and obtuse OF market
disQuisitionists. %
Very probably the buying was not
"of the best" as surprised chroni-
clers hurriedly reported; nor were
bankers the purchasers, as some
floor scouts hastily, concluded. d.
rective investors are not precipitAte'
neither are bankers likely TO become
suddenly frantic over rail- certifi-
Gates on a day replste with bids OF D
per cent for ninety days money. Such
abruptly improvised bulletins may be
doubly discounted.
But the mercsrial response to pro-
fessionai needs foreshadows wildly
what the rails will do once they are
reported out of constructive legis-
Iation and the financial field Is clear
I'D OF current difficulties.
These properties will be safely re-
launched. Their earning power
should be satisfactory to the invest
ment world. They should make an
Irresistible appeal to the national
purpose, should speedily retrieve tho
timstion OF fiduciary Institutions and
skilled financiers.
Some industrials must lose caste
as exports wane and commodities
prices declins But the rails have
seen their worst days, not their best.
They now have the public's good VIII
and sympathy in contrast to the pub
lies enmity formerly. Their values
were not inflated by the war: on the
contrary, average quotations yester-
day were well below the range prior
to the war. Liquidation has been In
cessant and enormous, particularly by
Europe, Every American railway
now IL American owned-for the nrst
time in American history.
Soon the optimist Ion railway Sc
curities will cease to be answered
with their mixture of asperity and
contempt, hitherto reserved for him
by publicists and financiers who could
not see beyond going quotations, the
current liquidation and actual oper-
ating results.
During the FIRST four hours the
stock exchange session and its radia-
lions were under the influence OF
Eastern pessmism: specifically af-
fected by the Eastern fear, OF another
rediscount raise on the part OF the
teOeTal ReSeTNc bdnh oi 4~c" VT
affected by decreasing exports. by ia
ternational politics. by the Eastern
bids of per cent for three-month
Western money. The last named were
made to Chicago bankers, who
promptly accepted them: who accept
ed also the per cent Eastern mer-
camille paper offered. Considering
the approach of March 1, the accept
ance of Eastern loans and paper may
appear overconfdent and temerarious.
But the Western situation has been
pretty thoroughly canvassed. Farm
ers are being increasingly induced to
bring their grain to market.
Much farm product has been. stored
for still higher prices. The farmer
has money and credit. He can afford
to wait as never before .....
with the aid Of the country banker.
the farmer is given to understand
that loans on extra farm lands must
be at least reduced and that the par
tial excuse Of the lack of freight cars
will not avail in the failure to turn
grains and produce into cash.