Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-05-08
IlRKET PEssIM|sT|C,
but CLOSES WITH RALLY
tnAhon Desperate Until Discovery
OF $6,OOO,OOO Loan OF
Time Money.
BY nROADAN WAII.

q NEW YORK. May 7.-wan Street
3 - Hooded with pessimism today TO
tcn an extent that old traders
ught some stocks in the afternoon.
{ 40 feeling was so desperate II could
! + possibly be. true. The Stock EN-
\ iange authorities of the country
4 gre In angry conference over "A
. an TO save the business of the coun-
I vi from the new stock tax. The
( nd OF the National City Company
injured tic opinion that the banks
s suld not finance the railroad needs
the year.
owing that the corporations of
t}e country had proti;ecvcd to the
tent OF billions since the war be-
IN. There were rumors OF real
EMPHASIZING the demand for increa scd
Skges and the railroad managers let
ibe known unoiiicially that the men
suld strike and ruin the country for
Y A&they cared.
( There was no hone anywhere.
Stocks Continued Decline.
4 Stocks were heavy at the opening
ID continued their decline until
! te7in the afternoon by which time
s;eS average losses were about . per
4 mt. Then n moderate buying move
ent began which caused n rally OF
4 tont point. Atlantic Gurf and
est Indies and Virginia coal ~
inced about eleven points from the
iaarge bank had loaned $4,000, 900 Of
me money for sixty days at 12
l,r cent. This being the first large
mount of time money put out since
lie first OF April. il, checrcd the
sreet up and the close was in the
sidst OF fairly good rally.
short interest Large.
1.-THE short interest in the stock mar
st is large and viii probably be
freed to cover by the brokers who,
..orkinE in harmony with the OK
Iaange in Its efforts to educate the
iblic to the fact that It is the friend
st be taxed out of existence. Will. of
turse, refuse to accept orders from
S,erators who are raiding the, mar
st. The POLICE committee of the eS.
SianEe has full power TO prevent
lids on Investments. The exercise
( that power will naturally be the
gst step in the campaign TO educate
40 public.
AS prices in Wall Street at tho
.oment have no relation whatever
y values. the proposed tax on specu-
.tion is considered the most i'm
he tax is without question most dan
erous and unpatriotic. 1t will de-
roy speculation and II that Is done,
will then be perfectly proper to
rs pa a lines nes OF on Business In The
Apply feature OF this proposed tax
that 1t is largely n result OF the
let that the New York Stock FIX
iange has neglected its duty to the
lblic. BY permitting raiders to
estroy investment values on the
iEhtcst pretext. the exchange has
the impression 10 go abroad
at speculation is the same as Eamb-
ng.
a Speculation Is Legitimate.
AS matter Of fact. speculation is
and necessary part OF
business. Rcformcrs in Congress
no do not Understand tho first prin-
ples OF economies imagine that by
riking at the spectators they Will
duce the cost o: living and increase
\ receipts. The proposed law would
crease the cost OF living Ivy making
extremely difficult TO get capital !or
~ enterprise and IL would reduce
G number OF dollars received in
xcs because it would destroy the
siness on which the present taxes
q levied. J, is such an absurd tax ,
at there is little chance OF Il being |
aue law.