The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-03-02
CR0|X De GUERRE
FOR !. 5. STEEL
BY BROADAN WALL

dNG" VI ~ SIdt vi - htAb' "a VI AAAS
railroads to their private owners was
wet blanket on the stock market
today and prices began falling AZ soon
as business opened The market was
very weak and was becoming more
active when the supreme court an
nounced that the United States Steel
corporation Is not a trust and there
fore need not dissolve. This checked
selling in the industrials and caused a
sharp rally which apparently had not
spent it's force when the market clos
ed. The net result Of the day was
some advances in the industrials but
with no material changes in the rails.
Money was at 10 per cent.
Bankers had a meeting during the
day and announced after it that loans
were in good condition which was in
teresting, but not news. The Wall
Street loans have been brought down
to less than Sl.000,000.0o0. The
stock mark is the strongest thing
in the country. The weakness is In
the commercial loans and the COM
u1crcial bankers are doing most Of
the worrying. The local bank state
ment of Saturday was made to look
good by the transfer OF funds bat the
banking condition for the whole
country is weaker than in the pre-
vious statement, The reserve bank
board does well in warning business
men TO be cautious. Temporarily
there Is an accumulation OF cash in
New York for the payment of in
GENE taxes but that is being with
drawn from other parts OF the coun-
try so that the Improvement is ap-
parent only and not real
Wall Street niaa n N
prised when it was announced that
the American federation of la Dor had
actually decided to let the new rail-
road law stand.
EndlcOtt-Johnson stock was one OF
the weakest issues on the list This
was undoubtedly due to the fact that
attention had been called to it hoard
ing Of material by its annual report.
Central Leather did the same thing
Hide and leather broke along with
Endicott-Johnson as did Central
Leather. evidently because the same
condition exists in that company. The
proflteering in shoes has been par
ticulariy obnoxious to the public be-
cause it strikes the children of the
poor harder than any other.
While the decision of the suprerns
court on the steel corporation pleas
co Wall Street AS general propo-
sition it is not likely to prove more
than temporary bullish factor. A
decision dissolving the CORPORATION
would have been bullish because that
would have meant a distribution of
subsidiary stocks, Therefore the lit
tie rally in the market was chiefly
a matter of sentiment. Conservative
brokers warned their customers not
to lake 1t too seriously. The decision
was looked upon very largely in the
nature of a Croix de Guerre for the
corporation did great service during
the war even though it did get well
pail for il in money.
Action Of the railroad stocks Was q
bitter disappointment to the street.
Nearly every brokerage house had a
group OF customers long of the low
priced rails which were to do wonder
otes things as soon as they were turn
ed back to private ownership. These
stocks had been freely bought on the
theory they never had square deal
before but are going to get 1t now.
Persons who have been buying these
stocks overlooked the fact that it is
going to take two years 10 get the
railroads back in smooth working
conditions and that in the meanwhile
have TO be raised for them. In the
present state of the railroad bond
market it is difficult to see how this
money Is TO be raised. BY the same
token 1t is difficult to see how the
railroad equipment companies are
going to sell locomotives and cars
unless the railroads are able 10 sell
bonds.
In the face of this situation there is
a possibility that another great SELL
ing movement of railroad stocks for
the account Of Great Britain will be
seen. Breat Britain will have to do
some financing here soon and must
accumulate credit Whether 1t will
be done by the shipment of gold or
by the Gale OF stock deposited here as
collateral remains to be seen. Owing
to the disparity in the sterling ex-
change rate the British can sell
American securities to great advan-
tage, Canada is putting an embargo
against the sale OF such securities in
that country but the New York stock
exchange still remains open for any
ira ctlons the foreigners care to
make.
After the bankers met today Wall
Street heard that Germany was plan
ming an interior loan OF ten billion
marks and that existing domestic
loans would be repudiated. Other
countries helplessly in debt are watch