The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-06-27

80 NN
the apparcIt development Of belle! on
IN" Iart ot observers that s;!ll further
reaction ia !Adu>ir! was likely 10 take
pace.
Railroads Hnve Hare Time
The d~Cfiu.'" nCwS tina tho diNii"Hd
I'll Chesapeake & Ohio and On Panhandle
would b" passed has been offset by tho
action announced OH behalf # tho d:roc-
tors Of tho Great Northern Eailw2y. in
approving: the regular dividend for that
! read. Railroad S"curi,icS have. how
ever. been disposed To show weakness
along with tnN .niustriars. Constant
rUmors nr reductions OF freight rates
have hai = lad effect, In spite or moro
or less authoritative announcements that
these rNductl"ms would not &" into e.
feet til autumn. TIL" power 81 The
roads ~ recover their strength Is large
'ly rcutra!i2ci " the constant threat Of
( Government Interference in one !"rm or
another. while the p,stpon"mCnt Of huSi-
Z hess recovery naturally cXCrtS a r"-
tloX influence upon railroad earnings
which Is reflected in the quotations Tor
! stocks. Whatever Is don" by the Inter
state Commerce Commission with regard
10 rates viii presumably have I" he
: based upon the general decision reached
IN the Transportation Act - Insure 20
, tho carriers q . per cont return upon the
value OF thc!: properties.
Monetry and Banking Problems
The monetary and banking situation
continues 10 develop along the samo
lines rs IN tho recent PAST. With 4
very great reduction in discounts 1T
Federal Reserve banks. and with al IN
crease 81 the amount Of gold over last
years holdings. now equal u almost
half 4 billion dollars. tn- problem ~
Federal Reserve ban policy and Of
banking policy as 4 whole becomes more
and more urgent. Accumulation q: tho
gold IN the Reserve banks t"Id TO Stimu-
late the belief or tho part OF many that
t. should he released through = more
liberal credit policy which would not
only permit. but ncnura 30. the relative
" free borrowing Of funds al banks.
Others think tina tho gold should h"
rapidly raid out into circulation. While
s,.!l others hnli 70 the opinion ;hat
measures should DO taken 10 prevent the
further importation uf gold. 1t is cor
tain that the existing relationship be-
tween the reserve holding hanks and Tn"
public must he modified N"corc 4 F-"a:
while. IN the meantime :h"rc has been
i much better supply Of call money.
Federal Legislation
The NoSt2oncmcnt O. taxation ana
tariff legislation has been an extremely
disappointing factor IN tho present situ-
alton. and business interests are be-
g!aNtng to demand assurances that the
whole question oc relieving them from
d present burdens IS not - be put over
urtil the regular session Of Congress IN
December. \ first draft Of tho tariff
nnsur IS now promised fO- about July
: !. but the prospects seem - favor A very
lorg po~stpOHeTnent % action "a n re-
suit OF uuarrcls within tho party and
sectional differences o: opinion. TTac-
tea! agreement upon very large naval
and army appropriations has made Il ap-
parent tina. the total volume OF taxa
t!ca IS rot likely 10 be cut down. Dur
Ing the past week the soldiers bonus bill
has assumed a more developed form and
apparently bids fair 10 cost a minimum
Of o.. 500. 900. 900. This clearly makes It
impossible 20 expect any d!st!2ct econo-
n.!es should the bonus measure receive
favorable action. On the other side u,
: tho account IS to be recko7ed the plan
announced TO Congress en- Juno %. with
consen; 0. the Treasury. for the fund
Ing CT European indebtedness to the
Cn!:ed States.
Market Bovtsw and outlook
wFth large transfers on the exchange
nearly every day during tho past week
the trend OF prices has been. on the
whole downward. The week opened
with quotations well below the average
OF last December, so that theirs was a
prevailing opinion that tho reductions
:ha: rad occurred were ample to dis
: count bad conditions or bad ncws what
ever It might be. The inability Of both
large and small holders of stock to pro-
tect their ownership has nec"ssitatrd a
considerable amount "f involuntary
liquidation. In tho main. however. In
vestors and spectators ar" aw7r" that
the opportunity "f purchasing stocks
a, prices hardly more than "rc-ha!t "t
their normal Nalu" is an unusu2I stu
alton. Ease In call money has not
served TO help rric" conditions very pro-
nouncedly, and un'il there is more DO
. c!dcd trade Improvement buying power
Will No doubt I've considerably LIMITED.
L: would s"rm. however. that on down
ward movements hereafter Il should 10
possible I" make purchases without en-
countcrinC much risk.