Evening star., 1921-09-11
BY I. A. FLEMING.

BY l. A. FLEMING.
Sentiment has greatly improved
during the past week. A united. con-
centrated and yet not preconcerted
campaign Of boost has been in order
from shore to shore and from north
to south.
And it has been effective IN turn
ing public opinion into more cheerful
channels.
! What would naturally be looked
tupon as a serious disaster to the
southern cotton-growing states has
been one of the chief factors in
bringing about the advances in that
staple. sensational and startling as
| they were, but exerting elsewhere an
ports are already in circulation of the
formation Of holding companies in
! the south to retard even the free
movement of the promised small crop.
Twenty cents pound for cotton ten
days ago would have been regarded
as godsend by the planters of the
south. but today many of them are
working for further advances, while
| the threat to carry much of the crop
in storage, If carried out, will leave
millions of frozen cotton loans un-
thawed. instead of liquidated, as the
bankers supposed would be the case
on the big advance.
Moreover, the boosting" might
carry prices to the point where the
spinners would consider it wise to go
on silent strike. Bankers might
force the liquidation of long time
loans.
The Improvement of conditions in
Mexico, SO far as American industrial
Investments therein are concerned.
York stock market. which has scored
and held many advances throughout
the list.
The action of the market itself has
surprised even it's best friends, Civ
ing the short sellers quite a scare
and taking from them pinch of their
great profits made in nearly a year
Of declining markets.
whether the market is discounting
an Improvement expected this winter
or actual Improvement has not fully
developed. certain corporations have
weathered the storm: they have cut
down inventories. reduced bank loans
and are operating again, some on
more time than others, production
varying.
The evident intention of the gov
ernment to further aid the railroads
has been reflected more in the equip
ment stocks than in the rails them
selves
Railroads are reporting better
earnings under the new wage scale
and will probably continue in these
comparisons. but it must be remem-
bered that the railroads of the coun-
try are not in good shape, that they
have been neglecting their usual con-
slderation of equipment, maintenance
and depreciation charges in order to
make the best showing possible from
their decreased earnings.
Many of the roads reporting for
July and some for August show a
heavy loss in their gross earnings
and convert this to a good gain in
probation and maintenance.
Every one understands this, and
therefore the strength and activity
in equipment stocks is a natural re-
suit of cause and effect. If the rail-
roads get sufficiently on their feet to
care for the real essentials of their
operating condition, the equipment
corporations should have all they can
do for many months. New cars. new
locomotives. brakes, rails. etc, are
sally needed by nearly all roads.
While the lower operating expenses
have been a great relief to the rail-
roads, they have yet to cope with the
persistent and reiterated demand for
lower freight and passenger rates.
The latter would certainly repay the
various operating companies, for the
high rates of fare have almost elimi-
mated pleasure travel, save for short
distances and with that particular
class of travellers with whom money
is in ample supply and coming as
well as gong.
Unemployment is not ended, by any
means. neither in Washington nor
throughout the country generally, as
evidenced by the forthcoming ma
tional conference under the auspices
of the administration.
From this 1t would seem that the
big advance in stocks and bonds
might be taken to mean a very gen.
eral discounting Of betterment ex-
pected with the winter months rather
than the immediate improvement in
conditions.
It is satisfactory from any stand
point to find the New York stock
market finally turning at the end of
the longest lane Wall street has
known for fifty years - perhaps
longer-from a prolonged, continued
and apparently endless slump.
If stocks go up. the public will come
in and go with them-not on a tenn
porary rise. The public is in govern
ment securities and in bonds. and a
sustained advance, of which they are
not by any, means sure, will bring
them back from certificates to stocks,
but their losses have been so severe
that their memories are rather long.
As to Tax Legislation.
More prominent American merchants
are moving with a unaminity of pur-
pose against the american valuation
plan of the Fordney measure, as they
feel that it will be disturbing factor in
the recovery of business
James Simpson, vice president of Mar
shall Field & Co.. commenting on this
feature of the Fordney measure, has this
to say:
while the business of the country is
settling itself into a stride that means a
return to stability, there are certain dis
turbing factors arising in Congress that
threaten to throw it into confusion.
Business today is very sensitive to OBJ
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