Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-02-16
WALL STREET OPTIMISTIC
DISAPPOINTMENT OF STRIKE
WILL IMPROVE MARKET
brokerage Houses Claim Ownrrship OF
ItniIroads IN Now Vested in small

ny nI,oADAN WALL.

MEM YORK. Feb. iJ.---Waii strict
viii resume business Tomorrow w;t;,
more optimisin than for many weeks
Improvement in sentiment is due 10
annonnccmemt that IN: 900, 200 mem
anSc Of Nay Employees and RailWay
Shop i.abcrcrs have POSTPONED inleiiu-
itely their strike for higher wages:
and u Statement: by Secretary houston
OF Tie United states Trcatury .ndicat-
ing that the government has provided
or Withdrawn from thc banks all the
money for the successful. carrying out
uf its financial plans. In addition to
is believed 10 be stronger ;hau ii has
been for wear as result CT the sew
ere deprec;ati9n in quoted market
Announcement that the railroad
workers have decided TO postpone their.
threatened walkout is gratifying 10
hay injected an element Of much un-
ceNain;y in the return Of the rail
roads on March TO private ownership.
Irrespective Of whether the employees
OF the railroads bclicred public scnti-
mont WAS for or against them. their
action is considered favorable in tina,
their demands adjusted without serious
interruption TO the transportation Dusi-
ness o. the nation.
Small Investors Control Roads.
Investigation develops the fact that
in the nations Transportation problem
than ever bcfpr" in the history 81 the
country. Large bvoltoraGe houses ana
bankers state that the ,wa"rshiD OF
the railroads has slowly but stcndily
been transferred from !arsc 10 small
investors. notwithstanding tho pcEs!-
mistic outlook Tor the transportation
companies. small investors have been
buying railroad stocks and taking tho III
hone until the floating supply o: these
securities IS now declared 20 be tho
smallest in history. Many people are
now The owners OF railroad stocks who
never before had a financial interest
N The operation cf the nations az
tories of commerce.
Although the remedy adopted has
hcen considered severe local ia nllers
stat, that the credi, situation has.
within recent weeke. shown substan-
tial improvements. oiicial. and other ad
sections testify 70 further credit re-
s,rictions and reduction IN prices In
Tho commercia! markets This haa
been somewhat r"fl"ct.d in tho decline
IA the call money rate 10 6 Her cent.
Time money. however. continues to
ne loaned at high rates.
Censes ms CHER borrower.
one reason. for The bsttermen, in
United States government has ceased
10 be III. chief bcrrowe.:. Of credit. Sec
ment. indicating that the needs Of the
government had kten arranged, Is a
source OF much qualification to linan-
tnothcr favorable influence is that
private interests In the United states
have received word from the other side
tAat the british government has as
sursd its induttTia! captains that !.
VIII finance the purchase Of all raw
materials tina, are urgently needed IN
Great britain. and which must be pur.
chased from America. Although no Of
ir!al annou ncement OF this attitude
Mas received in tic financial district
last week, the Improvement in sterling
exchange was considered significant.
While thete is a difference of opin
ion among prominent Wall Street in
.erests as 20 whether stocks are a pur.
tina. quite :: number Of bargain hunt
cTs have been induced 20 buy sccur:-
ties the last week. owing to tho sharp
depreciation in quoted market values
That has occurred the last two weeks.
Huge Earnings Disclosed.
Tho shares OF many OF the mos,
prosperous induStria! corporations are
considered TO be in strong position ow
ing I" the huge earnings made since
the beginning OF the European war and
tho ,,ol!cy U: the nanage!ntntS in dis
tributinG but smnll part OF tho rave
nmes, TO shareholders. These large
the o!nn,ctlon OF the liquidation Of the
War business the Industrial compu MES
are !ci. in stronger position than ever
before in their History Quite 4 num-
ber Of companies have within the last
five years earned more than the present
markc. quotations for their stocks.
Notw!thetanding this many people
arc Of tho opinion that the Industrial
depression which is being predicted in
some quarters should warrant lower
prices for securities. Brokers report
last Week sold bonds in order TO place
themselves III possession of cash with
which 70 buy stocks should = further
recession in quotations take place.
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Quit. State board of Control.